Canadian rental property while working in USA T776 NR-4 NR-6 Section 216(4) - Schedule E, 4562 1116


How do I handle my real estate taxes if I am Canadian citizen (nonresident) working the USA with a rental property in Canada?

david ingram replies:


You should have filed an NR-6 first before the first month's rent. Then your agent should have filed a NR-4 Supplementary for the rent and any tax deducted by March 31, 2007 for the 2006 year.

Then you must file a Canadian Rental return with a T776 under Section 216(4) for 2006 by June 30th.


Then you convert the figures on the T776 to US figures and put them on US forms Schedule E and 4562. If there was any income tax paid to Canada, you use US form 1116 to claim that credit on your 1040.