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posted May 1, 2023 2:37:35 PM

This is to the attention of NataliaC

I started to follow your instrux, then it occurred to me that, without qualifying the property as foreign (US), the software is likely to treat such a sale -- for tax purposes -- as local to Canada. Thoughts?

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Level 1
May 1, 2023 3:04:47 PM

Hi,

 

Just to recap your question. You inherited a US real estate property and you sold it in 2022. You asked how this would be reported in TurboTax Online, and NataliaC replied with the steps as follows: 

1- Log in to TurboTax Online and open your tax return

2- Click on Income on the left hand side navigator. A submenu will open.

3- Click on Investments. A submenu will open

4- Click on Capital Gains and Capital Gains deduction Profile

5- You will be taken to a page titled "Your Capital Gains Profile for 2022"

6- Please select the first option "Sold stocks, crypto, bonds, real estate, other capital property, or sold qualified small business corporation shares and/or qualified farm property and you have a capital gain or loss to report"

 

The above steps is applicable to your inherited property that you disposed of in 2022. Be sure to include the amounts in Canadian currency as opposed to US currency. For the purposes of this transaction, it doesn't matter that it is a foreign property, the treatment for Canadian tax purposes is the same for capital gains from real estate dispositions (foreign or domestic), you just need to report the amounts in Canadian dollars on the return.