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Deductions & credits
Your instincts are correct. As a Canadian non-resident that owns rental property, you should be filling a non-resident Canadian tax return for the rent that you received. If there is still a Canadian tax due, you can then include it on your USA tax return.
Rental income and non-resident tax
"Generally, the non-resident tax withheld is considered your final tax obligation to Canada on the rental income. However, if you elect under section 216 of the Income Tax Act, you are choosing to report your rental income from real or immovable property in Canada on a separate Canadian tax return. This allows you to pay tax on your net Canadian-source rental income instead of the gross amount and you may pay less tax. You may also receive a refund for all or part of the non-resident tax withheld. For more information, see Guide T4144, Income Tax Guide for Electing under"
Filing and reporting requirements
Claiming the Foreign Tax Credit with Form 1116
Where do I enter the foreign tax credit (Form 1116) or deduction?
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