Foreign Income

[ern2]

I am a Canadian Citizen that has lived in the US since 2001. I have moved back to Canada August 2022.

I worked in the US and am now working in Canada.

Do I need to claim my foreign Income on my Canadian taxes for the months I worked and lived in the US?

Also, I purchased a Home in the US back in 2002. I sold it in July, 2022 and bought a home in Canada.

Do I need to claim anything on foreign property being sold?

[there-hey]

You will need to report the foreign income you earned during the months you worked and lived in the US on your Canadian tax return for the year 2022. You may be eligible to claim a foreign tax credit to reduce your Canadian tax liability for any taxes you paid to the US on that income. You will need to provide documentation, such as your US tax return, to support your claim for the foreign tax credit.

Yes. As per the Canada Revenue Agency (CRA) as long as you met the reporting requirement threshold of $100,000 at any time in the year, you must report on Form T1135 all specified foreign properties held during the year, even if you sold any or all of the property before the end of the year. You will need to calculate any capital gain or loss on the sale using the proceeds received in Canadian dollars and the adjusted cost base of the property in Canadian dollars. You may also be required to report any foreign exchange gains or losses resulting from the conversion of the proceeds into Canadian dollars. It is recommended that you keep records of the purchase and sale of the property, as well as any expenses incurred, to support your calculations.

Please refer to the Canada Revenue Agency FAQ page: Assume I held specified foreign property during the year with a cost amount of more than $100,000, b...

• Income and gain (loss) on disposition
• Canada Revenue Agency: Foreign Reporting
• Canada Revenue Agency: Foreign Income Verification Statement

TurboTax FAQs page: Declaring Foreign Property on Your Tax Return

Thank you for choosing TurboTax

[there-hey]

You will need to report the foreign income you earned during the months you worked and lived in the US on your Canadian tax return for the year 2022. You may be eligible to claim a foreign tax credit to reduce your Canadian tax liability for any taxes you paid to the US on that income. You will need to provide documentation, such as your US tax return, to support your claim for the foreign tax credit.

Yes. As per the Canada Revenue Agency (CRA) as long as you met the reporting requirement threshold of $100,000 at any time in the year, you must report on Form T1135 all specified foreign properties held during the year, even if you sold any or all of the property before the end of the year. You will need to calculate any capital gain or loss on the sale using the proceeds received in Canadian dollars and the adjusted cost base of the property in Canadian dollars. You may also be required to report any foreign exchange gains or losses resulting from the conversion of the proceeds into Canadian dollars. It is recommended that you keep records of the purchase and sale of the property, as well as any expenses incurred, to support your calculations.

Please refer to the Canada Revenue Agency FAQ page: Assume I held specified foreign property during the year with a cost amount of more than $100,000, b...

• Income and gain (loss) on disposition
• Canada Revenue Agency: Foreign Reporting
• Canada Revenue Agency: Foreign Income Verification Statement

[there-hey]

TurboTax FAQs page: Declaring Foreign Property on Your Tax Return

Thank you for choosing TurboTax