How to report K-1 on Canadian Return?

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mpmartin300
Posts: 3
Joined: Sun Apr 24, 2016 10:30 am

How to report K-1 on Canadian Return?

Post by mpmartin300 »

I’m a US citizen living in Canada and received a 1065 Schedule K-1 slip from a Limited Partnership for the first time. I have no idea how to report this on the Canadian side and if I can even claim a foreign tax credit. I have amounts in boxes:

1. Ordinary business income
5. Interest income
6a. Ordinary dividends
6b. Qualified dividends (slightly less amount than 6a)
9a. Long-term gain
10. Net section 1231 gain
11. Other income
13. Other deductions
16. Foreign transactions (bunch of amounts)
17. Alt min tax
18. Tax exempt income

Anyone have any idea how to tax this in Canada and if I can claim a foreign tax credit?
mpmartin300
Posts: 3
Joined: Sun Apr 24, 2016 10:30 am

Post by mpmartin300 »

No one has any experience with this? I'm looking for any help at all, just to see if I'm on the right track.

I read a very brief blog from Gena Katz from Ernst & Young and she seems to think it can all be reported on line 130 as other income, but I'm not sure. Seems to make sense I suppose. JGCA from this forum mentioned that you just try to match it up as best as possible with income on the Canadian side (Div's to div's, gains to gains, etc). This makes sense as well.

I guess at the end of the day it doesn't really matter, as I'm sure this is all taxed at 100% in Canada and no preferential tax treatment is provided on any of this income correct?

I also read on this forum that the FTC's I can take on US investment income is very limited because I'm a US citizen; basically just on the dividend's. So if this is true, I guess I just take a FTC for the div's and forget the rest.
nelsona
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Post by nelsona »

Any tax that you paid in US that you would not have paid if you were not a US citizen, cannot be claimed on your Cdn return as FTC (that is why only 15% dividend, if you end up paying that much is eligible). Any other tax would be claimed on your US return by "re-sourcing" the interest and cap gains on form 1116 to reduce the US tax to zero on those incomes.

As to K1 reporting on T1, I would simply suggest you look at form T5013 and especially T5013-INST, which might give you a hint as to where each of your k-1 boxes go on which T1 line.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mpmartin300
Posts: 3
Joined: Sun Apr 24, 2016 10:30 am

Post by mpmartin300 »

Ok thanks, this helps. Yeah, I suppose the T5013 would be the equivalent on the Canadian side. Thanks for pointing this out.
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