Question : can a real estate property in Canada be considered for 1040 Schedule E filing?
We have a property that we rent out in Canada. Can we report the rental income and expense on Scheudle E of 1040 form in the US?
- asked by jmw_245
All Answers:
Answer #1
Yes. Worldwide income goes on Form 1040. If youalso pay any Canadian income tax - check that out- then you get a foreign tax credit on the 1040.
- answered by spicertax
Answer #2
All US Citizens and residents are required to filea US tax return on their worldwide income. Thus,if you have an investment rental propertyanywhere, you must report it on your tax return tothe IRS
http://www.irs.govThe Canadian CRA
http://www.cra-arc.gc.ca/menu-e.html will requireyou to file a tax return on all "Canadian source"income, and pay the applicable taxes. This wouldalso include your rental property.On your IRSreturn, you will be able to claim a tax credit,the Foreign Tax Credit (Form 1116). The credit onyour US 1040 return will be the lesser of the UStax or the Canadian tax paid on your rentalproperty income.If your property has a loss, itwould still be reported to both agencies, andwould be a loss on your US return.
- answered by Bryan
Answer #3
Bryan is correct. DO NOT FORGET to check off thebox that you have a bank account in a foregncountry if you do have oneBIG FINES FOR THIS ISYOU DO NOT.
- answered by dillon Y
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