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tylolol
New Member

How to fix issue caused by wrong taxation of foreign capital gains?

Last year I earned both employment income and capital gains income from the US while I was a resident of Canada. On Turbotax, when I enter the capital gains as foreign income it adds it to my taxable income. But as per the CRA's instructions, I also need to report the capital gains individually. Turbotax doesn't do this, and this means it's making me report the income twice.


Alternatively I can only put in the individual capital gains and ignore it for the "foreign income section", which seems to be the best way, but then there is no way to include them for the calculation of my foreign tax credit. Is there any way to work around this? Or alternatively, a good way to edit the PDF after it's generated?

1 Reply

How to fix issue caused by wrong taxation of foreign capital gains?

If you enter Foreign capital gains or losses in the foreign slip section, you should not enter that information again in the capital gains section.  Make sure you use the box specifically labeled Foreign capital gains or losses, and it will be reported on Schedule 3 on line 174.  Using the foreign slip section means you can include your foreign taxes paid, which will trigger the proper calculation of foreign tax credit as you said, if applicable.  The PDF can be regenerated by going to File > Print Your Tax Return, so you can review your forms before you NETFILE or print and mail to the CRA.