Do you use the t2125 form to include foreign business income and foreign income tax paid?

[twschroh]

If I use the T2125 form, there is no place to add the income tax that was paid on my foreign business income.  I tried using the foreign income input screen which allowed me to add the income tax paid, however I have to include my business expenses on the T2125 form and because there is no income on that form - I end up with a negative balance on my business expenses - and therefore won't get any deductions as we a result.  Thanks for your help.

[TurboTaxSusan]

You would report the foreign business income in Canadian dollars on your t2125. Then you can use the Foreign Tax Credit (FTC) page to apply for the credit on the income tax paid. To get to the FTC page, click on the Forms icon to go into Forms mode. Then click the Forms icon again, and search for FTC. Select the Foreign Tax Credits Worksheet and click GO. Scroll down the page to find the Foreign Business Tax section. Click the EasyStep icon to go back to the interview.