To benefit from all possible credits and deductions on your foreign rental income, follow the instructions below to enter that income into TurboTax and claim any applicable foreign tax credits. Before starting, fill out your personal information and tax profile to ensure optimal results.
If you owned or held foreign property during the year with a total cost of over $100,000 CAD, you must also completeForm T1135. This property includes bank accounts, stocks, bonds, and real estate.
Instructions for TurboTax Online
Note:All amounts entered into TurboTax should first be converted to Canadian dollars. The CRA will accept theBank of Canadaexchange rate in effect on the day you received the income.
From the menu, selectFindand enterrentalin the search field
SelectRental propertiesfrom the results, then selectGo
SelectYestoDid you receive income from a rental property?
Proceed until theReal Estate Rentals Statementscreen. Enter your information, then selectContinue
On theRental Profilescreen, select the checkboxes forRental IncomeandRental Expenses, then selectContinue
On theT776 Rental Incomescreen, enter as much of the foreign address as possible, including the postal code equivalent. However, enter your home province and postal code in theProvinceandPostal codefields
On the same screen, enter your gross rental income, then selectContinue
Enter your rental expenses on the screens that follow, selectingContinueas you finish each screen
On theHere's your capital cost allowance for your assetsscreen, selectDone
On theRental Summaryscreen, selectDone With Rental Income
From the menu, selectFindand enterforeign taxin the search field
SelectForeign Tax Creditfrom the results, then selectGo
SelectYestoDo you want to determine how much you can recover?
On theForeign Tax Creditsscreen, enter the name of the foreign country, then enter your amounts forForeign real property income,Deductions from foreign real property income(if applicable), andForeign tax paid on real property income
When you’re finished, selectContinue
On theForeign Taxes Summaryscreen, selectContinue
You’ve now entered your foreign rental income and claimed any applicable foreign tax credits
Important:Don’t enter your foreign rental income on theForeign slipscreen, as this will duplicate the amounts that you’ll enter using the steps below.
Instructions for TurboTax CD/Download
Note:All amounts entered into TurboTax should first be converted to Canadian dollars. The CRA accepts theBank of Canadaexchange rate in effect on the day you received the income.
From the menu, selectFindand enterrentalin the search field
SelectRental propertyfrom the results, then selectGo
SelectYestoDid you receive income from a rental property?
Proceed until theReal Estate Rentals Statement #1screen. Enter your information, then selectContinue
On theRental Profile #1screen, select the checkboxes forRental IncomeandRental Expenses, then selectContinue
On theT776 Rental Incomescreen, enter as much of the foreign address as possible, including the postal code equivalent. However, enter your home province and postal code in theProvinceandPostal codefields
On the same screen, enter your gross rental income, then selectContinue
Enter your rental expenses, then selectDone With Expenses
On theMultiple Rental Activitiesscreen, selectYesif you need to enter anotherReal Estate Rentals Statement. Otherwise, selectNo
On theRental summaryscreen, selectDone With Rental Income
Switch to Forms mode by selectingFormsfrom the menu
SelectViewfrom the toolbar, then selectFind Form…
In theKeyword to search forfield, enterFTC
SelectForeign Tax Credits Worksheet, thenOK
In theForeign Non-Business Incomesection, select the field forReal property incomein the applicable column. PressF2on your keyboard and selectYesin the pop-up window to override. Enter your net foreign rental income, then pressEnteron your keyboard
On the same screen but in theForeign Non-Business Taxsection, select the field forReal property incomein the applicable column. PressF2on your keyboard and selectYesin the pop-up window to override. Enter the amount of foreign tax paid on your rental income, then pressEnteron your keyboard
You’ve now entered your foreign rental income and claimed any applicable foreign tax credit(s)
Important:Completing these steps will require you to print and file your return, rather than NETFILE.