For 2018 taxes. I own rental property in Canada. Entering expenses (form 1116) for Canadian taxes paid 2018 (for year 2017) do I use income and expenses from 2018 or 2017

[rrafoth]

It would seem logical to use expenses and income from 2018 for a US 2018 tax form. But Canadian taxes being reported as an expense in 2018 are based on 2017 data.

My guess is I use 2018 Canadian expenses and income on form  1116.

[KarenJ · Accepted solution]

When you enter your rental property in TurboTax you should enter your 2018 rental income and 2018 rental expenses.  When you enter the Canadian income tax you paid on your rental income in Form 1116, you need to enter either the Canadian tax you  paid in 2018 (the paid basis) or the Canadian tax liability (the accrued basis, if you do not pay it until 2019).  Once you choose the accrued basis, you must use that every year (you cannot switch back to the paid basis in future years).