NR4 With Codes 13 and 23

[Rodey70]

I am a US citizen but get two NR4s from Canada because I lease mineral rights to an energy company up there.  The NR4s show income received and taxes paid.  I've tried inputting the information into TT without success.  Although I think I have the foreign tax credit portion figured out, I can't figure out how to deal with the income portion.

[MarilynG1 · Accepted solution]

First, you may need to convert Canadian dollars to US Dollars, for amounts on your NR4.

For lease payment for mineral rights, enter the income in the Rental/Royalty section.  If you don't have an Address for the property, you can use your own address.  You may need to page through some rental questions to get to the Royalty section.

TurboTax automatically calculates a 15% Depletion Deduction for you.  This is reported on Schedule E in your return. 

You were on the right track for reporting Foreign Tax paid.  Although you indicate 'passive' income', and enter the income amount again, you're not being taxed again.  The idea is to give you credit for what the US would have taxed you on this income, so you may not receive a credit for the entire amount of Canadian tax you paid. 

Again, you'll have to page through questions about taxes on interest/dividends to get to the place to indicate you had another type of foreign income. 

Here's more info on Claiming the Foreign Tax Credit. 

@Rodey70