I sold property in Canada, filed & paid Canadian taxes. The gain has been deposited in my US bank. Do I need to include this on my US tax return and is it taxable?
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I sold property in Canada, filed & paid Canadian taxes. The gain has been deposited in my US bank. Do I need to include this on my US tax return and is it taxable?

 
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New Member

I sold property in Canada, filed & paid Canadian taxes. The gain has been deposited in my US bank. Do I need to include this on my US tax return and is it taxable?

Yes, the gain from your Canadian property is taxable on your US tax return.

The US taxes both US and Foreign source income. You will need to include the gain on the sale of your Canadian property as income on your return and you can claim a Foreign Tax Credit on the Canadian taxes paid on the sale.

See the following regarding claiming the Foreign Tax Credit in TurboTax: 

Filing IRS Form 1116 to Claim the Foreign Tax Credit

See the following for additional information on using the US Canada Tax Treaty:

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