topic Canada rental property where to report to get tax credit for tax paid on Canadian rental property? in Deductions & credits

Canada rental property where to report to get tax credit for tax paid on Canadian rental property?

speedy7660 — Mon, 22 Mar 2021 21:52:34 GMT

I paid Canadian tax for my Canadian rental property. Where do i go to claim credit for my tax paid in Canada so I won't be double paying tax in Canada and US. Turbo tax keep asking about 1099!?! which I have done and cannot move forward!?!

Re: Canada rental property where to report to get tax credit for tax paid on Canadian rental prop...

DaveF1006 — Mon, 22 Mar 2021 22:57:52 GMT

It depends. First enter your Canadian Income by:

In TurboTax, go to federal>wages and income>Rentals, Royalties, and Farm>show more
Rental Properties and Royalties (Sch E)>start or revisit
Completely enter your rental information regarding your Canadian rental. Don't worry about entering a 1099 if you don't have anything to enter. You can enter your information here without it.
Now go to federal>deductions and credits>estimates and other taxes paid>foreign tax credit>start
Start entering the information here. if you get stuck on a question, don't hesitate to write back.

Re: Canada rental property where to report to get tax credit for tax paid on Canadian rental prop...

speedy7660 — Tue, 23 Mar 2021 14:33:55 GMT

Thanks Dave! Will try this out!

Re: Canada rental property where to report to get tax credit for tax paid on Canadian rental prop...

speedy7660 — Wed, 24 Mar 2021 15:49:06 GMT

Should I enter the foreign tax paid for property rental under Passive category income or General category income?

Re: Canada rental property where to report to get tax credit for tax paid on Canadian rental prop...

LinaJ2020 — Sat, 27 Mar 2021 02:19:32 GMT

You should categorize it under Passive Income. After entering information under Rental section, continue to go through the foreign tax credit section to complete the transaction. Here are the steps:

Here are the steps:

Open up your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "foreign tax credit" and Enter
Select Jump to foreign tax credit
Follow prompts

If you pay taxes on your rental to both Canadian and US government, the IRS allows you to claim a foreign tax credit on your Form 1040. It will show on Schedule 3 line 1 and line 20 on Form 1040.