I have a client who has a winter home outside of Canada which they sold in 2019. They can claim reduce some of the gain with the principal residence exemption. The only way that I can designate the gain on the house as foreign for FTC purposes is to go to Schedule FTC - Country X and input it on “Other income on which tax was paid”. Is there a way to link to get TaxCycle to link this principal residence as foreign source to automatically update the FTC calculation. Schedule 3 / T2091 does not seem to consider this.
Interesting scenario. I didn’t realize you could claim a principal residence exemption for a foreign property while still being considered “resident” in Canada. But, I looked it up:
Not sure about the FTC, though. Are you saying they had to pay tax to the foreign country on the sale of the property? Is there a tax treaty with that country?
Yes and Yes. Its more of technical issue I am having with entering the gain. I do have a work around but I was hoping to have the T2091 tie into the FTC.