Distribution of Canadian Partnership holding US Real Estate

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kenrousselle
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Joined: Tue Jul 26, 2016 8:40 am

Distribution of Canadian Partnership holding US Real Estate

Post by kenrousselle » Wed Jul 19, 2017 5:02 pm

I have a client who owners a small %'age of a Canadian LP that recently sold a US property. They received a T5013 with capital gains of $80,000, a negative rental loss of $6,500 and US taxes paid of $27,000.

I assume by the amounts that the Canadian LP didn't file for relief of withholding taxes paid in the US.

Based on the clients income, they can't recover all of the taxes paid in the US on their Canadian Return.

Can they file a US return to recover taxes paid in Arizona even though they haven't received a US tax slip (1099 I believe) or is it now considered a gift because the partnership didn't file a W8 BEN form requesting relieve?

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