There is an "acknowledged" error of omission in the CRA form T776 - Rental Income. The CRA agents tell us that since we own a foreign property from which we have foreign income, we should use form T776 so that we can deduct expenses from the gross rental income.
However, we also pay foreign tax on that income and there is NO provision for claiming the foreign credit if we use T776. To be able to claim the foreign tax credit, you must also enter the income amount under line13000 since that will allow you to enter income and foreign tax paid on the "Foreign Slip".
HOWEVER, the rental income will therefore be entered twice, incorrectly.
The best way to handle this in TurboTax is to use both T776 and the "Other Income" entry but to then use F2 to OVERRIDE line 13000.
This corrects the situation and calculates correctly the foreign tax credit but it also means that you CANNOT efile your return.
We have written to CRA to point out this shortcoming of T776.
Thank you for letting us know!
ABworkers
Returning Member
peterbrucewest
New Member
mabochel
Returning Member
sjbpeters-gmail-
New Member
ron-ronaldjbrown
New Member
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