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New Member
posted Apr 21, 2020 3:58:43 PM

claiming foreign tax credit

I recently sold a US personal use property.  Where do I claim the $6000 in Turbotax that I paid the US Government for US Capital Gains tax on my 1040NR that I filed?

0 10 5589
10 Replies
Level 13
Apr 28, 2020 10:02:00 AM

The 1040NR taxes paid is reported on the Foreign Tax Credit form (T2209).

  • To locate the Foreign Tax Credit form, go under the "Deductions" tab - "Payments Profile" - "Foreign Tax Credit"  enter in the Foreign Real Property boxes.
  • Alternately, you can use the "Find" icon at the top right corner of your screen and type in "Foreign Tax Credit"

 

Links below will provide you with more detailed information on Foreign Tax Credit with the USA:

 

 

Returning Member
May 9, 2020 8:14:24 AM

After getting to the "Foreign tax credit" page, what are the steps to enter in the Foreign Real Property boxes?  There doesn't seem to be a box for this.  Is it manually entered on the T2209?

Also, where is the capital gain on the sale of this property entered?  Is there a section in "Income"  to enter a capital gain on a foreign house sold that's not your principle residence?

Level 15
May 9, 2020 3:57:36 PM

Go to Easy Steps/ or if you are using Online version - Go to the top right- click on "Find" type in Foreign slip- then you will see where you will enter your information required such as your foreign capital gains or losses. 

 

https://turbotax.community.intuit.ca/community/other-income/help/how-do-i-report-foreign-income-foreign-pension-and-other-foreign-amounts/00/873599

Returning Member
May 12, 2020 1:07:55 PM

Sold my personal use house in USA.  After filling in the capital gain and foreign tax paid in the Foreign slip, how do I enter a description of the sold property in Schedule 3 where it asks for proceeds, year acquired, total adjusted cost base and total outlays and expenses?

Returning Member
May 31, 2020 5:58:29 AM

The software doesn't permit me to enter a number in the non-business Foreign Real Property box.  When trying to enter a number in the Foreign Real Property box, I'm taken to another screen where there's no option to enter Foreign Real Property capital gains.  How do you get a  foreign capital gain into the Foreign Real Property box?

Employee Tax Expert
Jun 1, 2020 10:31:56 AM

From your description it sounds like you are using TurboTax Download version. and the screen you are taken to is the "Foreign Slips" panel. If that is the case, click on "Foreign" at the bottom of the list in the Foreign Slips panel . You will be able to enter your capital gain in the "Foreign Capital Gains" field and your tax withheld in the "Foreign tax paid" field.

Alternatively, under the “View” option in the top toolbar, you have the choice of selecting the EasyStep method which works just like it does in the online version. (You are also able to switch from one method to another.)

You may find that your foreign income, tax credits and deductions can be prepared more easily using the Easy Step method. Once in the EasyStep view, under the “INCOME & EXPENSES” section in the left-hand navigation pane, open the panel for “Entering your federal T-slips” and check the box for “Foreign Slip.” Follow the steps from there.

Returning Member
Jun 1, 2020 11:10:20 AM

I notice that with all of the described methods of reporting a foreign capital gain on the sale of a personal use house, the capital gain gets entered into the "Other" box in the "Foreign Tax Credits Worksheet" and there is no way to enter the capital gain into the "Real Property Income" box in this worksheet.  For a capital gain on the sale of a foreign, personal use, non-principle residence house, is it not important to enter the gain into the "Real Property Income" box rather than into the "Other" box in the "Foreign Tax Credits Worksheet"? 

New Member
Sep 6, 2020 1:04:19 PM

I have U.S. rental income which I declared as rental income on Turbotax Canada.  I paid income tax to the IRS on this income.  Where do I enter this tax which I paid to the IRS on Turbotax Canada?

Thanks.

Returning Member
Apr 13, 2021 12:11:14 PM

Is there anyone who knows how to handle this?  I didnt see an answer

 

Level 2
Apr 11, 2022 12:09:24 PM

I have exactly the same question - has anyone out there been able to work through it?

Thanks for sharing the info!