Income from foreign rental in Foreign Tax credits form

Please review the links provided below to assist in entering your Foreign Tax Credit & Foreign Rental Property; if the issue still persists then your best option is to contact our support team as they can view your screen and determine the best course of action. If the agent is unable to assist, request to have the issue "escalated" and ensure the agent provides you with a Case# for follow up.

• How do I enter US rental property income? 

• Declaring Foreign Property on Your Tax Return

• Canada’s Foreign Income Tax Credit

@TurboTaxLise thanks for your response. I had a really long online session with support team this morning and they that said would get back to me by tomorrow.

Problem is simple - there is no way to include foreign rental income (non-USA) in Foreign Tax Credits form. FTC gets its data from foreign slips and foreign rental is not put on foreign slip because it is put in T776. Due to this foreign tax credits calculation is not being done properly. It ends up using foreign income/tax that was put in foreign slip only.

Glad to hear that they will look into this and will get back to you.  If you need to reach out to us again, come through our Facebook or Twitter via private message, we will be able to assist you further if needed.

did someone figure this out. I am having the same problem. My US rental income is reported on the T776 schedules but I have US taxes that I would like to claim. The FTC form links to t-slips

I got a call from TT last week and I was told that the only way to get tax credits is to show rental income in "Other foreign non-business Income" in foreign slip. I don't agree with doing this simply because I cannot capture enough details about rental property in foreign slip. TT said they will not change this, which in my opinion is a shortcoming in TT.

I don't know how and why some admins in TT have suggested editing foreign rental income in FTC directly - https://turbotax.community.intuit.ca/community/investments-rentals/discussion/you-will-need-to-re[product key removed]s-1-rental-income/01/904166#M1907

This is simply not possible.

Thank you. 

I agree with you! I need to track UCC etc. Filling it in on the other income line would be misrepresenting the amount to CRA

Hi,

May I know if you've solved your problem or not?  I also have the same problem: foreign rental income with foreign tax paid.  Thanks!

Yes I did.  The online version allows you to report your income correctly in the 776 and then report the income on the FTC form and claim the taxes paid. Adding the income on the FTC form does  not double it up. 

In the downloaded version the cells you need are grayed out.

The online version also provides more lines on the 1135 if you need them. You also have the option of net filing your return and 1135 separately if you still cannot get enough lines.

When I complained to the support person that I had already paid for the downloaded version and I did not want to pay again to use the online version, they gave me a promo code to file with the online version for free. The only problem then was that I could not upload the draft return I had already started and I had to redo the returns from scratch.

I hope this helps!

Hi there ... one year later and I see this is still an issue (at least in the downloaded version). What was the outcome of escalating this last year?

Thanks

I had to prepare the returns with the online version and they worked fine.  When I complained they gave me credit to prepare my returns online since I had already bought the downloaded version and I would not file the returns properly. I will go straight to the online version this year .

If you are reporting a foreign rental income using the TurboTax Desktop products, you need to report the income on the foreign income slip and deduct the foreign taxes paid. If you use the T776 form for foreign rental income you will not be able to deduct the foreign tax credit. The foreign income tax credit slip deducts taxes that have been reported in the foreign income.

If you are using a TurboTax Online product, you will be able to use either method: foreign income slip or the T776 slip then use the FTC slip to claim the foreign taxes.

I hope this was helpful