Donations to US organizations
Moderator: Mark T Serbinski CA CPA
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Montreal_us
- Posts: 10
- Joined: Thu Jun 09, 2005 3:33 pm
Donations to US organizations
The US-Canada treaty allows Canadians with US source income to deduct donations made to US organisations.Quebec has taken a position that it is not bound by the treaty and is disallowing the donations since they were not made to a Canadian registered charity. HAs anyone else seen this issue.What results is that the US citizen living in canada is having his US and federal taxes reduced by the donations ,but not Quebec taxes.
Technically, MRQ is not bound by the treaty, so is quite free to tax its residents with US connections solely on the basis of its own tax laws. If more provinces would do their own taxes, likely more would follow suit.
The same situation exists in US, where the individual states do not have to go along with the RRSP deferral provisions (although the vast majority do, or at least do so without knowing, california being a notable exception), nor do they have to grant tax credit for Cdn Fed or Prov taxes paid on their returns (which all but one or two do NOT).
Neither the states nor the provinces are bound by the treaty between the IRS and CRA.
<i>nelsona non grata... and non pro</i>
The same situation exists in US, where the individual states do not have to go along with the RRSP deferral provisions (although the vast majority do, or at least do so without knowing, california being a notable exception), nor do they have to grant tax credit for Cdn Fed or Prov taxes paid on their returns (which all but one or two do NOT).
Neither the states nor the provinces are bound by the treaty between the IRS and CRA.
<i>nelsona non grata... and non pro</i>