There is a major problem here. The NR4 form shows income in boxes 16 and 26. Box 16 is for interest earned during the year, and the corresponding box 17 show the tax paid by the investment company to the CRA, on our behalf. Box 26 shows a capital gains amount, and the corresponding box 27 is generally blank, indicating that no tax was withheld. This is surprising, because Capital Gains are taxable in Canada, whether the money is withdrawn or not. In the USA, Capital Gains is only taxed after the money has been withdrawn. It is most likely that the amount shown in box 26 has not been withdrawn, so it is not taxable in the US. If this analysis is correct, the value is Box 26 should not be reported, because if it was reported, the TT form will show that US must be paid. Some formal clarification by Turbo Tax, or by the IRS would be useful here.
