I am helping my Dad with his 2022 tax return. In 2022, Dad sold a small vacant lot in Canada. He is a US citizen, and has no other income and/or connections to Canada so would not have any reason to be filing a Canadian tax return other than the sale of this lot. Canadian accountant helping Dad submitted an estimated Canadian capital gain tax amount within the required 7 days of closing (approx $2,000). However, apparently the rules in Canada require the capital gains tax calculation done immediately after the sale to not include any selling expenses (and only include the purchase price and other allowable purchase expenses to be included in the basis for the capital gain calculation). Consequently, when the actual Canadian tax return was completed, the actual capital gain tax was much smaller (approximately $250) and a refund was requested, approved, and sent to Dad.
Question #1: How should the transaction be handled on Turbotax? I understand all amounts must be converted to US Dollars for the days the various expenses/sale occurred and that is not the question. Instead, I am looking for how & where to enter the transaction on Turbotax.
Question #2: Although the entire sale/transaction occurred in 2022, the actual Canadian tax return was not filed until early 2023 (Canadian accountant said it was not possible to file return until 2023), and thus the refund was not received until 2023. If at all possible, I would like Dad's 2022 tax return (which has not yet been filed) to reflect the entire transaction (since we now know all of the details) so we are not having to remember the refund received when the 2023 tax return is filed....and any foreign tax credit claimed for 2022 (approximately $2000) would be larger than it was in reality (approximately $250)....is there a way to file Dad's tax return with the transaction including all of the details in 2022 and not have to include any reference to the transaction on his 2023 tax return?
Thank you in advance for any guidance regarding either question.
