I just paid US federal taxes on rental property for 2022. On my Canadian return I have recorded the rental income as per turbotax premier into form T776. using my Canadian postal code and province. How do I report the US taxes paid and claim the foreign tax credit. Please provide step by step details.
Hi Michaeltka,
Congratulations, you have taken the right step by entering rental income in form T776.
You can follow these next steps -
1. By entering rental income and expenses in Form T776 you should have arrived at the Net Foreign Income
2. Enter the Net Foreign Income from step 1 above in Foreign Income slip under line 'Other Foreign Income' and report the corresponding foreign tax under line 'Foreign tax paid'
3. Erase your inputs from Form T776 once you have reported the Net Foreign income and Foreign tax in Foreign Income Slip in step 2
Please note when filing your return keep proof of any foreign taxes paid in case the CRA requests documentation.
Hope this help, if you have further questions, please respond in this thread.