Claiming Canada credit for tax paid to US/Cal on Cal rental

[lanman2000]

got it. I did it all again without CCA and figured out how to get the FTC for total US tax paid on the rental income.

I see now (after going through ufile) what richarooca was talking about. Its a bit misleading the way ufile does it. You have to go into a section called "Foreign Rental Income" and copy in the calculated rental income from the T776 into a box that says "business income" but its mislabeled (a problem with their software). It ends up showing up correctly on the T2203 as foreign rental income.

All is well now.

By the way, now the returns show the following for net rental income:

US: $2228
Canada: $9534

The Canada one is obviously higher because I'm not claiming CCA.

Now does it sound right? :) :) :)

thanks again for all your help.

[lanman2000]

edit: I said "T2203" but I meant "T2209"

[nelsona]

Roght, so now you use "some" cca until your 2 taxes meet up.

[lanman2000]

ok thx. And since my house is a stucco/wood frame with no basement built in 2003 it is CCA class 6 right?? I initially thought it was class 1 then i read the specifics for class 6. Class 6 depreciates WAY faster i noticed (10%/yr vs 4%/yr)

[nelsona]

Hey, we're done. See you next year.

[lanman2000]

okie doke. Thanks again.

[richarooca]

Ok, now the converse. Can I claim a credit on the US (and possibly Calif) for the Canadian tax I paid due to my Calif rental, and if so which form?

[nelsona]

No. US and cali get to keep all the tax on their source income.

[richarooca]

D'oh. Thanks for all your information on this site nelson.
I'd buy you a beer/drink/happy meal right now if I could.

Guess it is time to print and file now. I can't wring out anymore 1116 credits.