I have many clients with foreign limited partnership income reported on a T5013 in Box 104. However, the FTC page does not allow the assignment of foreign business income for LPs to a country. Subsequently, I must manually enter the income on the FTC page. In the Multiple Jurisdiction input, there should be some way to assign box 104 to a foreign country.
2 Answers
2Thanks for asking about these points.
A positive amount in box 104, which posts to line 12200 of the T1, does get included in the calculation of CPP payable on self-employment income.
On these T5013 slips, I believe you are saying that they have an amount in box 104 as well as box 172, foreign tax paid on business income, but no amounts in the business income boxes for general partners (116, 120, 122).
On the T5013, we have box 172 because we filed a U.S. tax return with an associated K-1. Regarding the income reported on the U.S. 1040NR, I had put box 172 in Taxprep because the amounts in Box 104 are still business income and not non-business income. Happy to discuss if you want to do a call and I can walk you through my thought process and the TI.
– dcpaleyAs this is my first year with TaxCycle since 2014, I just had the chance to complete a live return with one of the LP returns. I managed to get the reporting correctly in TaxCycle, but the entry is counterintuitive.
In addition to adding the ability to put foreign income in Box 104 of the T5013 on the business income line on the FTC, the same income is still considered self-employment income and attracts CPP on self-employment come as well as being entitled to the extended June 15th due date.
– dcpaleyTo clarify the ask, I would like to see (1) a country code added to the MJ input on the T5013 for Box 104, (2) have for foreign income reported in Box 104 moved to the business income line of FTC, (3) extend the filing due date from April 30 to June 15 and include the income as part of the CPP calculation for self-employment. 2002-0148217 - Foreign tax Credit, U.S. Partnership
– dcpaley