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- as you are US resident - all your worldwide income is reported on your US tax return;
- that includes your Canadian rental income regardless if that income is taxed in Canada or not.
- you will be able to deduct rental expenses against your rental income - these calculations are done on schedule E attached to your US tax return;
-- and only net rental income will be added to your other taxable income
- net rental income is taxed as ordinary income;
-- you would realize capital gain if you sell rental property.
- US tax rate are based on TOTAL income, filing status, deductions, etc; there is no separate tax rate for rental income;
-- you may review 2017 tax rate schedule here
- in additional - if the same income is taxed in the US and in Canada - you will be able to claim a foreign tax credit - thus effectively will avoid double taxation of the same income.
In the US - there is a different treatment for capital gains comparing to Canada...
First of all the term "capital gain tax" is referred to INCOME tax on capital gain - that is not a separate tax,
But when the property was owned more than a year - the gain is taxed at reduced long term capital gain tax rates - that are based on your total income, filing status, etc - and may be zero, 15% or 20%.
So far - same tax rates are in 2017 and in 2018 - while there is a discussion regarding tax reform - I would not expect any changes soon - but normally tax brackets are slightly adjusted for inflation.
If you provide your other income, filing status and expected gain on that sale - I may estimate your possible tax liability.