Serbinski Accounting Firms

For anyone following this thread, I was able to figure this out by faking an entry on a T5013 slip. There was a spot for foreign rental income in box 111. It pulled the foreign rental income into the “Real Property bucketâ€￾, which makes sense, because this income should not be limited. So rental income and capital gains from the sale of a foreign property are treated the exact same way.

Got it, thank you. I should have clarified better; the software does not code rental income, it must be inputted manually.

There is no spot for rental income on the foreign income screen, so both the US rental income from the T776 and US foreign tax paid on the rental income have to be manually ...

Thank you!

There is a separate bucket for “employment Incomeâ€￾ (so 4 buckets total – employment, other, investment and real property).

The only two sources of foreign income that get pulled into the “otherâ€￾ bucket is foreign capital gains and pension income. So, my guess is the only time “Otherâ€￾ would ever be used for foreign capital gains is if you had non-real property foreign capital gains from a non-treaty country (because they are not re-sourced). This doesn’t apply to me anyway, but I thought it was curious.

I also have rental income for this property. Would this income go in the Real Property bucket as well, or perhaps Investment or Other?

Stan

Ok thanks so much for your help!

Is it weird that when I put an amount in the "foreign capital gains and losses" section on the foreign income screen that it pulled the income into the "Other" bucket instead of the "Investment" bucket? When would one ever put capital gains in the "Other" bucket or ...

Hi Nelsona,

Hoping for some help on my Canadian return. I’m a resident of Canada and sold my US property for which I’m NOT claiming the principal residence exemption for in Canada or the US. So, I will have capital gains to report on both my US return and Canadian return.

I’m confused about how to take the foreign tax credit on the Canadian side. I did a bit of research and concluded that this income is Non-Business income. On my software, I have the option of putting it in 1) Investment, 2) Real Property, or 3) Other. The foreign tax credit is different depending on how I classify it. This is because 1) Investment allows 20(11) deduction AND 20(12) deduction, 2) Real Property only allows 20(12) deduction and 3) Other does NOT allow either. Which “bucketâ€￾ do I put it in?

If I enter just normal capital gains on the foreign income screen, it gets pulled into 3) Other. But are capital gains from real property treated differently?
Furthermore, do I include the FULL capital gain in my calculation of non-business income OR just the TAXABLE capital gain (50%). I think it must be the 50%.

Any help would be greatly appreciated.

Ok.

Thanks so much for all your help.

Thank you for taking the time to help me with this, I understand it now.

Just to confirm, California SDI (State Disability) from W2 would be considered FICA eligible for 1040NR Schedule A and Canadian return, correct?

Thanks.

I did read the instructions, but I wasn't quite sure if I was understanding them correctly. Here's the thing, I don't think I will have an obligation to file a 1040NR return in 2016; I didn't work in the US this year, only 2015. So what happens with the refund amount? Do I still have to ...

I’m confused about what amount of state tax to claim on Schedule A of my 1040NR. Do I claim the amount withheld on my W2 or the actual final amount I end up paying on my state return?

I had a refund on my California return. Do I subtract this amount from the amount withheld on my W2, use the ...