Further questions re: Canadian to US tax form equivalent

[PK2022]

Looking for further information to file US taxes from Canadian forms/ income

1. NR4 - Canada Pension Plan income

2. NR4(OAS) - Canada Old Age Security income

3. A previous reply stated "The U.S.-Canada tax treaty exempts 15% of these benefits from U.S. tax. "

    Does exempt 15% mean I can reduce this income by 15%, or what does it mean?

4. Another previous reply stated "Capital Loss Carryover- in Investments and Savings section, if you have passive loss carryovers, they would be embedded in Rental section.'

    Is this referring to the rental section of a specific form  (1099-R or other)?

In this same section for Partnership Income, the Canadian form appears to show net, while the US form asks for gross - how do I come up with the correct amount, as it is only a Limited Partnership?

[DaveF1006]

It depends. What the US/Canada tax treaty actually says is that pension benefits paid to US residents are taxed by Canada at 15% of the gross amount.  This doesn't mean that you may reduce the gross income by 15% for US reporting purposes. It only means that Canada may not charge more than 15% income tax on that income. 

The second question deals with rental property, if you have any. Passive loss carryovers in rental property refer to the losses from rental, royalties, partnerships, S corporations, estates, trust etc. that you cannot deduct in the current tax year due to passive activity loss limitations. This has nothing to do with 1099R or other specific forms other than a Schedule E, which reports income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).

As far as determining the net or gross of partnership income, for US reporting purposes, the gross amount is reported and US taxes will tax on the amount of gross income.  Also, gross income is used to calculate a foreign tax credit that is based on the same gross income amount in Canada. If Canada reported a net amount, this means they may have reported a gross amount that is net of taxes. If you know the tax amount you paid in Canada, you may add the taxes to the net amount reported to determine the gross amount.