We are Canadian working in US. If we have rental property in Canada and the rental income withheld tax has been applied. Should we claim it? if yes where should we put in

[RichardK]

Yes you report the income from your rental property, if you are U. S. residents. You report the rental income on Schedule E and claim a foreign tax credit on Form 1116.

Click here for instructions on reporting your foreign rental income in Turbotax.

To claim the foreign tax credit you enter the net rental income on Form 1116, click here for instructions to enter the foreign tax credit in Turbotax.  

[RNLA]

So if you're filing your rental property in Canada, you get a foreign tax credit for this for US tax purposes? If so, do you file your Canadian taxes or American taxes first? 

When entering your rental income, do you enter the amounts in Canadian dollar or convert the rental income to USD?

[VictorW9]

Generally, you will report your foreign rental income in schedule E. You may have to do the conversion to U.S dollars. Then, you will have to take the foreign tax credit you already paid against your U.S tax liability. There are limitations as how much foreign tax credit you can deduct in single year but the remainder can be carried forward.

[Lowry7]

I've reported my foreign rental income under schedule E. However, TurboTax doesn't recognize this income as applicable for the foreign tax credit because it's not classified as interest, dividends or Schedule K-1. How else am I supposed to claim my foreign tax credit within TurboTax?

[KarenJ2]

You will need to  enter your foreign rental income in the foreign tax credit section of TurboTax.  You will need to enter your gross rental income and then the expenses as Definitely related expenses.

To report your foreign taxes paid on foreign rental income

1. Click on Deductions & Credits 

2. Scroll down to Estimates and Other Taxes Paid 

3. Scroll down to Foreign Taxes 

4. Click 'Yes" you paid foreign taxes 

5. Click through the screens regarding foreign interest and dividends 

6. Click yes that you have reported all your foreign income already in TurboTax 

7. Click that you want to take a credit 

8. Answer question about the Simplified Limitation Election 

9. Choose income type for rental income it will be passive income

10. Add your foreign country as the country 

11. Enter description -  Foreign rental 

12. Enter Income amount that you previously reported in TurboTax- Enter gross rental income 

13. Enter rental expense totals as Definitely Related Expenses 
     

14. Enter your taxes you paid on your foreign rental in the box Foreign Taxes on Rents and Royalties

15. Continue through ALL the foreign tax credit screens until done.