Search found 7 matches

by AvalonJeff
Fri Feb 23, 2024 4:56 pm
Forum: Canada / United States Tax & Accounting
Topic: IRS forms for claiming U.S. FTC on Canadian LT Cap Gain
Replies: 0
Views: 96

IRS forms for claiming U.S. FTC on Canadian LT Cap Gain

Dual CAN/US citizen resident Canada, MFS. I've previously used forms 1116 to claim FTC on General category income, as well as interest and dividends in the Passive category. I have not previously had to report capital gains. I need to know how to report the gain (and claim the U.S. FTC) on a single ...
by AvalonJeff
Fri Jan 20, 2023 3:44 pm
Forum: Canada / United States Tax & Accounting
Topic: Calculating Canadian Dividend Tax Credit for Tax Paid on Form 1116
Replies: 2
Views: 1614

Calculating Canadian Dividend Tax Credit for Tax Paid on Form 1116

Taxpayer is US/CDN duel national, resident in Canada, trying to calculate the Canadian tax paid on Dividend income for use with FTC on U.S. Form 1116. Taxpayer files MFS with NRA spouse who does not file in the U.S. Taxpayer splits his pension income with spouse on Canadian return. This causes the t...
by AvalonJeff
Wed Aug 10, 2022 11:38 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC de minimis exception, 8621 reporting & how to proceed?
Replies: 1
Views: 888

PFIC de minimis exception, 8621 reporting & how to proceed?

Scenario... Dual Canadian/US citizen (USC) with Canadian spouse (CDN), both resident in Canada. USC files MFS (not desirable but non-negotiable). CDN spouse claims NRA and does not file a US return. Through ignorance of the PFIC complications, they jointly made a small investment (50/50) in a Canadi...
by AvalonJeff
Fri Jul 22, 2022 7:35 am
Forum: Canada / United States Tax & Accounting
Topic: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse
Replies: 9
Views: 2435

Re: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse

Thank you to ND for the warning about switching between an accrued basis and a paid basis when filing 1116’s. Thank you also to nelsona for confirming the importance of this limitation on switching. Your comments are extremely helpful and your participation in this forum is much appreciated. It seem...
by AvalonJeff
Wed Jul 20, 2022 2:04 pm
Forum: Canada / United States Tax & Accounting
Topic: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse
Replies: 9
Views: 2435

Re: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse

Thank you again for your help. In response to your question, I did think that all pension income was passive. Thank you for correcting me on this point. Does this mean that using the FEIE instead of FTC is another possible solution of Dual-USC?
by AvalonJeff
Wed Jul 20, 2022 9:40 am
Forum: Canada / United States Tax & Accounting
Topic: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse
Replies: 9
Views: 2435

Re: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse

Thank you, nelsona, for the detailed information you’ve provided. I’d like to ask you a couple further questions about the tax PAID approach, but I’ll respond first with 4 comments about your suggested variations on the tax ACCRUED approach. 1. MFJ is not an option in the scenario that we’re discuss...
by AvalonJeff
Tue Jul 19, 2022 2:04 pm
Forum: Canada / United States Tax & Accounting
Topic: U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse
Replies: 9
Views: 2435

U.S. FTC Calc for Dual Citizen, MFS, Canadian Pension Splitting with NRA Spouse

Here’s the scenario… A dual citizen of the United States and Canada (Dual-USC) is resident in Canada and uses U.S. filing status MFS. This Dual-USC is married to a Canadian-only spouse (Non-USC). Both are resident in Canada. The Non-USC spouse identifies as a Non-Resident Alien (NRA) for U.S. tax pu...