I have a Canadian property which earns rental income. I file my tax in Canada with the CRA. How do I avoid being double taxed in the USA as per NAFTA?

[pk · Accepted solution]

you report the Foreign ( Canadian ) rental income just as if the property was  in the USA, except for the depreciation which would be  40 years  rather than 27.5  for USA residential.   Under business income, go down to the rental income  and go through the  questions and TurboTax should be able to do the needful.  If you need more than this , please comment

[maraivan]

I have had a Canadian rental home for multiple years and I always report it is explained in this response. After I finish entering everything in, the Federal and State numbers go back to exactly what they were before I started entering the Canadian real estate income. However, this year that did not happen. I have a slight gain between rental income and expenses on this home (~1k) and Turbotax is counting it as income and not equalizing the numbers. Did something change this year?