topic 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 in Investors & landlords

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

susanguo23 — Thu, 06 Jun 2019 09:56:30 GMT

Yes you report the income from your rental property, if y...

RichardK — Thu, 06 Jun 2019 09:56:32 GMT

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.

Re: Yes you report the income from your rental property, if y...

RNLA — Tue, 11 Feb 2020 19:29:09 GMT

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?

Re: We are Canadian working in US. If we have rental property in Canada and the rental income wit...

VictorW9 — Tue, 11 Feb 2020 19:47:26 GMT

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.

Re: We are Canadian working in US. If we have rental property in Canada and the rental income wit...

Lowry7 — Sun, 01 Mar 2020 08:54:44 GMT

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?

Re: We are Canadian working in US. If we have rental property in Canada and the rental income wit...

KarenJ2 — Sun, 01 Mar 2020 21:24:51 GMT

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

Click on Deductions & Credits
Scroll down to Estimates and Other Taxes Paid
Scroll down to Foreign Taxes
Click 'Yes" you paid foreign taxes
Click through the screens regarding foreign interest and dividends
Click yes that you have reported all your foreign income already in TurboTax
Click that you want to take a credit
Answer question about the Simplified Limitation Election
Choose income type for rental income it will be passive income
Add your foreign country as the country
Enter description - Foreign rental
Enter Income amount that you previously reported in TurboTax- Enter gross rental income
Enter rental expense totals as Definitely Related Expenses
Enter your taxes you paid on your foreign rental in the box Foreign Taxes on Rents and Royalties
Continue through ALL the foreign tax credit screens until done.