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zingg
New Member

Reporting US rental income?

Due to medical issue rented our personal US house, filed a US 1040NR, no refund or tax paid. The adjusted income was negative even without the depreciation. How should I report the rental income (loss)?  Does this affect my T1135?

Looks like this answer is what I was asking....

It would be more appropriate and simpler to report the net rental income (if greater than zero) on the Foreign Income slip as Other Income and the foreign taxes paid, if any.  The form T776 is designed and used for rental income of Canadian properties.  Consider all the provisions under the Income Tax Act for rental income that have no bearing on how that US income will be assessed, further, if there is a net loss it is simply stated as 'Zero' income, and not a loss.

The asset is still reported as an 'Foreign Property' on the T1135, if it is not used primarily for personal use.


US funds in a Canadian bank does not require a T1135.




The asset is still reported as an 'Foreign Property' on the T1135, if it is not used primarily for personal use.

 

3 Replies

Reporting US rental income?

To report rental income in Canada  transfer data from your schedule C of 1040NR to your T776. However, if you are looking to keep this property as a principal residence in future do not claim CCA in Canada. You are allowed to claim rental loss in Canada against other sources of income. 

Property should be reported on T1135 if the Cost is over 100,000. US funds in a Canadian bank does not go on T1135.

zingg
New Member

Reporting US rental income?

We used a schedule E and attached it....we did not use Schedule C...

Reporting US rental income?

If you used schedule E, please follow same  path but using Schedule E