If you've paid foreign taxes on rental income from property outside Canada, you can claim a foreign tax credit. Here's how to do it in Wealthsimple Tax:
- Navigate to the Rental Income section in your tax return
- Enter your rental property address in the Identification area
- Scroll to the Income & Expenses area
- Look for the line that says "Your portion of foreign tax paid (if any)"
- Enter the amount of foreign tax you paid on your rental income
This amount typically includes withholding tax or other foreign taxes paid on your rental income.
Remember:
- Only enter taxes paid to a foreign government
- Ensure you have documentation to support the foreign taxes paid
- The foreign tax credit helps prevent double taxation on your international income
If you're unsure about the exact amount or type of foreign taxes you've paid, refer to any tax documents provided by the foreign country or consult with a tax expert familiar with international tax laws.
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