How do I report the taxes paid in the USA on a capital gain which was not a gain in Canada?

[mrwa11eye1]

US expat sold house in USA and incurred gain ..taxed $4000 on it in the USA.  The cost base was the value when I moved to Canada (13 yrs) ... and the gain the difference between value when I moved and sale value.  I spent $$$ finishing the house off .. in excess of what the gains in Canada were  ... so, it appears I have a loss in Canada now.

How does a person report these taxes paid in the USA?

The house was a personal use property so my understanding is that NO credits can be carried over??

thanks

[TurboTaxLise]

You must clarify the Foreign Income verification statement first.

The question in the Profile Section of your return will be as such : did you own or hold specified foreign property where the total cost amount of all such property, at any time in 2018, was more than $100,000 CAD?   If Yes

This open the T1135 - Foreign Income Verification Statement form that is under the Income section drop down to Other Income sources and you will find the form there.  Go through each screen one at a time and you will be able to enter in your gains/losses within that form.

Your taxes paid should be applied in the Foreign Slip which is located under the Income Tab, Tslips then Foreign slip.

All amounts are to be reported in CDN$ based on the exchange rate at the time of the transaction.

For additional information:

Using the United States-Canada Income Tax Treaty to Reduce Double Taxation
https://turbotax.intuit.ca/tips/using-the-united-states-canada-income-tax-treaty-to-reduce-double-ta...