Sale of property as a Canadian non-resident

[Safeler]

Hi all, I've been lurking this forum for a while now and I must say that this forum has been extremely helpful for us in these complicated and often strange tax situations.

I'm a Canadian citizen currently on TN status in the US. I'm a non-resident in Canada and I've been living and working here in the US for several years now.

In late 2017, a house back in Canada that was co-owned by myself and a family member was sold. This house was not my primary residence nor was it an income-generating property. As I am a non-resident of Canada, my portion of the proceeds from the sale of that property is being held in trust until the CRA issues a certificate of compliance. I don't expect the certificate to come through until later this year, and thus, I still haven't received any proceeds from the sale of this property yet. The CRA will automatically deduct capital gains on these proceeds and I will receive the difference when I file my taxes with the CRA this year.

How would I go about reporting this to the IRS? Since I haven't received any proceeds from the sale of the property yet, would it be better to wait until the funds come through and report it on next year's taxes (2018 tax year).

Any thoughts would be greatly appreciated. Thanks guys.

[nelsona]

You will want to report it in the same year you report it in Canada, so that the foreign tax credits match up on your 1040

[nelsona]

You know the proceeds, so just include them now. You can always amend the return later to get the tax credit.