Using TurboTax for more than 6 years. Usually I filed my foreign rental income with T776 and claiming the foreign Tax credit withT2209 by filling Foreign Slip with Other Income (which will not add up to my Income).
This year, it adds to my total income which doubling my rental.
I have contacted the support team and the conclusion is "Turbo Tax does not handle foreign rental income with foreign tax credit".
If you have foreign rental income and pay tax for the rental income to that country, do not use Turbo Tax.
My problem is solved by returning my software back to them.
Are you using TurboTax CD/Download or TurboTax Online?
In order to help you with this situation, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to help resolve the issue. To contact them, please follow this link: Contact Us.
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Please let the support team tell me the steps how to report it, otherwise it looks like a bug in the software and no one wants to fix it.
By the way, I don't want anyone to access my screen, the information is personal.
If TurboTax is not going to fix the problem and I am not able to file my returns, may I have a refund? I don't want to pay $85 for a software that I cannot use it.
I have found another software, which allows me to enter foreign income (non-T slip) and foreign tax, so that the rental income will not be calculated twice in T1.
Without viewing your return, we cannot give you complete and accurate directions or rectify a problem without reviewing your entries. Here are the instructions we can give you below.
When using TurboTax Premier Online - To claim foreign rental property income and expenses you will go under "Income" and click on "Rental Properties". You will get to the Rental profile and you will check off both "Rental Income" and "Rental Expenses" then continue.
Rental Income will be the next page T776 which you will complete as follows- For "Foreign Rental Property" enter your Canadian home postal code for the "Postal Code" for the property and your home province for the "Province". In the "Address" for the property, fill out as much of the property's address as will fit, including the equivalent of the postal code (such as a ZIP code for US addresses). Note that the CRA's NETILFE/EFILE servers will accept only the first 30 characters of the address. Continue to the next page which is the Rental Expenses. *Be sure to enter the amounts in Canadian dollars".
Foreign Tax Credit form (T2209).
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Both boxes " the Real Estate Income and Real Estate Tax paid " are protected, when you double click the field, the system brings you to T5013 form. This form has nothing to do with foreign property income.
In order to help you with this situation, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to help resolve the issue. To contact them, please follow this link: Contact Us.
Thank you for choosing TurboTax.
I try to contact Turbo Tax support team and they ask support ID. Where can I find my support ID?
If you don't have a support ID, you can just tell the answering machine what you are calling about. ex: if you have a tax problem, just say "tax return question".
Thank you for choosing TurboTax.
I have contacted the support team and the conclusion is "Turbo Tax does not handle foreign rental income with foreign tax credit".
If you have foreign rental income and pay tax for the rental income to that country, do not use Turbo Tax.
My problem is solved by returning my software back to them.
The worst is TURBO TAX refused to refund.
Worst customer support.
We apologize that your experience with our phone support team was not satisfactory. We understand that you may have reservations about sharing your screen, but we assure you that we have implemented adequate security measures to protect your information. We request only a few minutes of your time to review your return and locate the issue so that we can resolve it.
Thank you for your valuable feedback.
In regards to your issue. I have rental property in another country as well and have used turboxtax for years. I didnt have any issues with delcaring it. I use the preimer version which it seems like you do as well.
THere is a form you need to use and a dialog box that comes up to enter the information (I believe its other income). If you want help just email me. [email address removed]
Robert
I have to concur with @gleung, that there is an issue with how TurboTax handles the Foreign Tax Credit (FTC). In my case it relates to a capital gain (CG) on the sale of a US property. Per CRA I entered the CG in the 'Real estate, depreciable property and other properties' (area 5) on Schedule 3. As I had first filed with the IRS and paid the the tax on the CG, I am looking to capture the tax paid as an FTC. I entered the tax paid as USD with an exchange rate as 'Foreign Tax Paid' on the 'Foreign' slip, however the amount entered does not reflect on line 1 -'Non-business income tax paid to a foreign country' (43100) on form T2209 -Federal Foreign Tax Credits. The only way to get this to populate is to add the USD CG amount to the 'Foreign capital gains/losses' line also on the 'Foreign' slip. This now populates 43100 with the correct amount and also adds the USD CG to 'Net foreign non-business income' (43300) for the calculation on line 2 of form T2209. This also flows through as the correct amount on line 128 (Federal Foreign tax credit (40500)) on page 6 of the T1 General.
Sounds great, right?
Unfortunately, the CG also gets reported as 'Capital gains (or losses) from T5, T5013, and T4PS information slips' (17400) on line 14 on page 2 of Schedule 3. This has the net effect of reporting the capital gain TWICE! The capital gain (the calculated amount on line 22 of schedule 3 '2023 taxable capital gains' (19900)) ends up as the entire original CG amount.
I spent 4 hours yesterday with TurboTax support (3 different agents, 2 dropped calls), the third agent was finally able to review my entries via screen sharing, consulted level 2 support and concluded that while I was entering everything correctly, the result was incorrect (double CG as above). The agent suggested that I consult a tax accountant. I'm havng difficulty with this suggestion as I shouldn't have to pay a tax accountant to assist with resolving a TurboTax calculation issue. The agent's second suggestion was to consult the CRA, however my response is similar to that regarding the previous suggestion; the CRA doesn't care that TurboTax doesn't work, nor are they invested (or should they be) in supporting the application in any way.
Furthermore, while reviewing my 2021 tax return on which I had reported a similar gain, I discovered that the 'double CG reporting' issue had occured on that return as well. I made use of the 'ReFILE' functionality within TurboTax 2021 to correct the filing by removing the CG from Area 5 of Schedule 3, however CRA is now asking me to refile Schedule 3 relating to the property sale (CG). While I can submit a manually completed Schedule 3 independently in response to the request and hope that it will satisfy CRA's inquiry, this will not address how to file my 2023 return while satisfying their reporting requirements using TurboTax.
I am interested in any feedback on how to proceed, or if Intuit is truly interested in addressing what appears to be a 'bug' in the TurboTax application.
Any thoughts @TurboTaxBrenda, @TurboTaxGinette, @TurboTaxSusanor @pattersonbanana ?
Oh, and while this thead is marked as 'Solved' IMHO it does not appear to be...
On further reflection, where this 'bug' appears to be is in the calculation of the 'T5, T5013, and T4PS information slips' (17400) on line 14 on page 2 of Schedule 3. The capital gain amount is entered on the 'Foreign' slip, not on any of 'T5, T5013, and T4PS'and therefore should not appear there.
I gave up with Turbo Tax and used a cheaper better tax software to file my return. I got my tax refund 3 weeks ago. I cannot wait for Turbo Tax to realize it is their problem.
I was frustrated with Turbo attitude: it is not our problem, you should call CRA.
We all understand, it has nothing to do with CRA, it is a bug in Turbo Tax.
The worst is they don't want to refund me without a reason. (Just said: Refund is rejected.)
For me, this is the last time I purchased Turbo Tax. I don't have energy to file for their product refund.
The short answer is 'Yes'. However this has no bearing on the reporting of income via T1 general for taxation purposes other than to corroborate the value of foreign (US) holdings.
I've provided a complete rundown of the issue and how to replicate it. Can one of the 'experts' please duplicate these entries on their own to corroborate the 'bug'?
Since you are a resident of Canada and have sold a property in the US, you are required to pay taxes on it. To fulfill this requirement, you need to complete Schedule 3. Nevertheless, you can claim the foreign tax credit to reduce the impact of this tax liability.
Thank you for choosing TurboTax.
Brenda,
With respect, please read my original post as you are clearly not getting the gist of my issue...I get that I am required to report and am trying to do so, however the TurboTax product does NOT allow me to do so correctly. If you don't know how to fix (or work around) the bug, please refrain from simplistic, non-productive replies. Perhaps another admin can review and advise.
Thanks
PS I am trying very hard not to be rude here, but your replies thus far have been waaaay off the mark.
Unfortunately, we are unable to help you any further in this community forum. We believe your best option is to contact our telephone support team again for further assistance, as they have the option to view your screen to help resolve the issue. To contact them, please follow this link: Contact Us. When asked if you wish to receive an email say NO then say "speak to a representative" then hold the line. If you do not reach a resolution please ask for an escalation so an investigation can be done.
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Hi @TurboTaxGinette,
Thank you for the feedback, per my original post I have ALREADY done what you suggest. At the time there was no mention of an escalation, just an indifference to my plight, even though I clearly demonstrated the 'bug'. While you state that there is nothing more to be done via the forum, I was hoping that one of the 'experts' could replicate the issue and work their magic to get that escalation as this issue obviously affects anyone in the same situation.
Is there not someone at TurboTax (Intuit) that monitors these forums that can investigate further? Otherwise, they are missing a valuable tool for insights on their product...
BTW I phoned Intuit's main corporate line and was given an 'Office of the President' email address. I have since opened a case via a link that was provided via return email.
BTW, I have confirmed that @gleung 's contention that 'it used to work'. I reviewed my 2018 return which was also prepared and filed correctly with TurboTax2018. The issue appeared for me with TurboTax2021 and continues with TurboTax2023.