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You will need to treat this income on your US tax return in the same manner as similar US source income. You will need to report it as rental income.
Foreign rental income ( residential rental ) is reported on the same Schedule-E just as if the rental was in the USA. The only difference is that foreign residential rental is depreciated like US commercial property -- 40 years class life. Turbotax needs to know that the rental property address is "foreign address" and this then allows Turbo to make the correct choice.
Then, go to the Deductions and Credits section and select Foreign Taxes under ‘Estimates and Other Taxes Paid’ to enter any foreign tax you already paid to Canada on that income.
Please let me know if you have additional questions.
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