US resident sold Canadian rental property in 2011

tc456 · Post by **tc456** » Tue Jun 26, 2012 10:27 am

We are residents of the US, living in the US. Sold Canadian rental property in 2011. Paid taxes to the IRS for 2011.

We're waiting for the Canadian accountant to still file our taxes. He has estimated that 15,000 will be paid when filed from amount still being held.

When do we get the credit for the Canadian taxes 15,000 on our US return? It seems it should have been taken in 2011?

Thank you for your assistance

nelsona · Post by **nelsona** » Tue Jun 26, 2012 11:56 am

That's correct. You will need to amend your US return to use form 1116 to get credit for the final tax that is determined on your 2011 return.

I'm curious as to how you were able to file your US return without yet having finished the Cdn one. The determination of your tax on the sale should have been determined at the same time.

You should be having one person do both sides of this tax, and your 216 return has a deadline.

tc456 · Post by **tc456** » Tue Jun 26, 2012 12:52 pm

We made the mistake of having an accountant on either side doing their part in retrospect.

We're waiting for the Canadian return to be filed and we are waiting to receive the Clearance Certificate which our Canadian accountant has filed for.

What is the deadline for filing the 216?

Ugh..

JGCA · Post by **JGCA** » Tue Jun 26, 2012 8:40 pm

216 deadline is usually by June 30th, but this is not the same return you need to file for teh gain on the sale this requires a seperate tax return sec 216 is only for the rental portion and cca.