US taxes on rental income - impact on CRA returns/filing

[fmartins2003]

Dear all, I am now a PR in Canada, and will have to file taxes on both US and Canada for at least 2 years still (and hopefully not longer...).

I have rental properties in the US. I have had profits/income out of those properties in 2019. As of today (march 2020) I have not yet paid the USA income tax on that rental. That will be done when I file 2019/2020 tax returns, in July (I have to ask for deadline extension in the US every year). In Canada, I hope to file on time in April (next month). How do I credit myself, in Canada, for that income tax (on that rental) that I have not yet paid in the US, but I know i will have to?

 

[canuck_in_uk]

Dear all, I am now a PR in Canada, and will have to file taxes on both US and Canada for at least 2 years still (and hopefully not longer...).

I have rental properties in the US. I have had profits/income out of those properties in 2019. As of today (march 2020) I have not yet paid the USA income tax on that rental. That will be done when I file 2019/2020 tax returns, in July (I have to ask for deadline extension in the US every year). In Canada, I hope to file on time in April (next month). How do I credit myself, in Canada, for that income tax (on that rental) that I have not yet paid in the US, but I know i will have to?

Plug the US numbers in to a calculator and get an estimate. File your Canadian taxes using the estimate and then submit an amendment when you get your actual US numbers.

 

[fmartins2003]

That simple, eh? I thought of doing that, but I figured it could be more complicated. Good to know. Simplifies (or delays) the problem. thank you!