IRS accept Canadain donations

[MONTREAL-CPA]

For a US citizen living in canada does the Irs recognize donations to Canadian organizations if there is Canadian source income(as CRA accepts US donations against US source income)

[nelsona]

Yes. Generally donations upto 50% of the Cdn income reported can be deducted, in the year that they are made. Donations to Colleges which you or family have attended can be deducted regardless of Cdn income reported.

Such donations could impact foreign tax credit calculations.

[nelsona]

Traety Article XXI(5):

For the purposes of United States taxation, contributions by a citizen or resident of the United States to an organization which is resident in Canada, which is generally exempt from Canadian tax and which could qualify in the United States to receive deductible contributions if it were resident in the United States shall be treated as charitable contributions; however, such contributions (other than such contributions to a college or university at which the citizen or resident or a member of his family is or was
enrolled) shall not be deductible in any taxable year to the extent that they exceed an amount determined by applying the percentage limitations of the laws of the United States in respect of the deductibility of charitable contributions to the income of such citizen or resident arising in Canada. The preceding sentence shall not be interpreted to allow in any taxable year deductions for charitable contributions in excess of the amount allowed under the percentage limitations of the laws of the United States in respect of the deductibility of charitable contributions. For the purposes of this paragraph, a company that is a resident of Canada and that is taxable in the United States as if it were a resident of the United States shall be deemed to be a resident of the United States.

[MONTREAL-CPA]

THANK YOU.would Canadian donations be deductible against US source income as well?

[nelsona]

I think I answered that.

[MONTREAL-CPA]

I aplogize as this was my first post. To confirm ,canadian donations would only be deductible against canadian income ,so ,for example,if a US citizen residing in canada had a gain on a sale of US property ,only US donations would be accepted against that inbcome not canadian donations.

[nelsona]

Reread what I and the treaty say, please.