Article 4 - Residency Tie-Breaker Rules Treaty-based return position as required by section 6114 1b.Article(s) - IV 4.Residency Tie-Breaker Rules Taxpayer is considered a resident of both Canada and the United States. Rule 1: Taxpayer has a permanent home in both countries. Rule 2: Taxpayer has vital interest in both countries. Rule 3: Taxpayer has a habitual abode in both countries. Rule 4: Taxpayer is a canadian citizen only. Taxpayer has substantial presence and therefore cannot claim closer connection. Taxpayer is eligible to be treated as a Non-Resident Alien as per treaty tie-breaker rules above, based on CA/U.S. Tax Treaty Article IV. As per the tie-breaker rules above, the taxpayer is a Resident of Canada. Taxpayer's tax home is Canada
Article 7(1) - Business Profits Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - VII(1) 2.IRC Section unknown CANADA - US TAX TREATY Article VII Business Profits - The business profits of a resident of a Contracting State shall be taxable only in that State unless the resident carries on business in the other Contracting State through a permanent establishment situated therein. If the resident carries on, or has carried on, business as aforesaid, the business profits of the resident may be taxed in the other State but only so much of them as is attributable to that permanent establishment. Taxpayer received non-employee compensation from a Permanent Establishment located in Canada and Profits received in 2024 was approximatly $_____ USD	Article 7(1) - Trust Income Treaty-based return position as required by section 6114 1b.Article(s) - XXII Canada/U.S. Tax Treaty Article XXII - Other Income. 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention,shall be taxable only in that State, except that if such income arises in the other Contracting State, it may also be taxed in that other State. 2. To the extent that income distributed by an estate or trust is subject to the provisions of paragraph 1, then, notwithstanding such provisions, income distributed by an estate or trust which is a resident of a Contracting State to a resident of the other Contracting State who is a beneficiary of the estate or trust, may be taxed in the first-mentioned State and according to the laws of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the income; provided, however, that such income shall be exempt from tax in the first-mentioned State to the extent of any amount distributed out of the income arising outside that State. Client's Name received $_____ USD from Name of Company, as a distribution of the estate of Name of Deceased Person Client's Name is a resident and citizen of Canada.
Article 15 - W-2 wages reporting commuter working remotely Treaty-based return position as required by section 6114 1b.Article(s) - XV 2.IRC Section 863(b)(1) Taxpayer is a Canadian citizen residing in Canada. The taxpayer is usually a commuter to the United States however, due to the Covid-19 pandemic and limited border crossing, now works in Canada remotely for the United States employer. As per the U.S./Canada Tax Treaty Article XV, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed that other State. The United States employer included all wages on the Form W-2 which included income earned while the employment was performed in Canada. This income should be prorated to reflect the U.S. sourced income and what should be Canadian sourced. U.S. sourced income earned from MM/DD/YY to MM/DD/YY Canadian sourced income reported on W-2 and earned from MM/DD/YY to MM/DD/YY	Article 15 - W-2 wages reporting under 10K Treaty-based return position as required by section 6114 1b.Article(s) - XV Taxpayer is a Canadian citizen residing in Canada. The taxpayer is usually a commuter to the United States however, due to the Covid-19 pandemic and limited border crossing, now works in Canada remotely for the United States employer. As per the U.S./Canada Tax Treaty Article XV, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only if such remuneration does not exceed ten thousand dollars ($10,000) in the currency of employer. The United States employer included all wages on the Form W-2, Pursuant to IRC sections 894 and 7852(d) During the current tax year the taxpayer received $_____ USD in compansation as an employee of a US employer which has been excluded from the taxpayers U.S. Gross income.
Article 17 - Inherited Pension Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XVII 2.IRC Section 219 CANADA - US TAX TREATY Article XXII Other Income 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State, except that if such income arises in the other Contracting State it may also be taxed in that other State. 2. To the extent that income distributed by an estate or trust is subject to the provisions of paragraph 1, then, notwithstanding such provisions, income distributed by an estate or trust which is a resident of a Contracting State to a resident of the other Contracting State who is a beneficiary of the estate or trust may be taxed in the first-mentioned State and according to the laws of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the income; provided, however, that such income shall be exempt from tax in the first-mentioned State to the extent of any amount distributed out of income arising outside that State. CLIENTS NAME received $_____.00 USD from NAME OF COMPANY, as a distribution of the estate of NAME OF DECEASED PERSON CLIENTS NAME is a resident and citizen of Canada
Article 18(5) - Taxpayer who recieved Social Benefits (SS, CPP, OAS) Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XVIII(5) 2.Social Security - 86(a) 3.US Social Security Benefits Administration office of International Operations PO Box 17769 Baltimore, MD,21235-7769 Taxpayer is a U.S. citizen and was a full year resident of Canada in 2024. Pursuant to Article XVIII(5) of the U.S./Canada Tax Treaty, the taxpayer's Canadian Pension Plan (CPP) and Old Age Security (OAS) are exclusively taxable in the State where the recipient lives. U.S. Social Security Benefits are exclusively taxable in the State where the recipient lives. Social Security Benefits received for 2024 were approximately $_____ USD Canadian Pension Plan Benefits recieved for 2024 were approximately $_____ USD Old Age Pension Benefits received for 2024 were approximately $_____ USD	Article 18(7) - RPP Election Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XVIII(7) 2.IRC Section 671 Taxpayer is a US citizen residing in Canada in 2024. As per the US/Canada tax treaty art XVIII-7, a resident of Canada who is the beneficiary of a trust, company, organization or other arrangement that is a resident of the other Contracting State, may generally exempt from income taxation in that other State and operated exclusively to provide pension employee benefits may elect to defer taxation until a distribution has been received. Taxpayer is electing to defer taxation under US/Canada tax treaty article XVIII(7) and Rev Proc 2002-23 of Registered Pension Plan (RPP) Unknown bank acct #UNKNOWN balance on January 1,2025 was approximately $_____ USD (name of bank) acct #____ balance on January 1,2025 was approximately $_____ USD Taxpayer is electing to defer taxation under US/Canada tax treaty article XVIII(7) and Rev Proc 2002-23 of Registered Retirement Savings Plan (RRSP) (name of bank) acct #____ balance on January 1,2025 was approximately $_____ USD (name of bank) acct #____ balance on January 1,2025 was approximately $_____ USD	Article 18(13) - RPP Deduction Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XVIII(13) 2.IRC Section 219 As per US/Canada tax treaty article XVIII(13), taxpayer is entitled to claim a deduction from income for contributions made to a qualifying retirement plan. Taxpayer performs services as an employee in Canada Taxpayer's Canadian wages are taxable in the US and in Canada Taxpayer's employer maintains an establishment in Canada Taxpayer's contributions are attributable to services performed in Canada The contributions were made into a qualifying Canadian retirement plan as defined in treaty article XVIII(15) Wages as reported on form T4 $_____ USD Contributions into qualifying Canadian Retirement Plan $_____ USD Wages net on contributions-entered on 1040 Line 1 $_____ USD
Article 22 - Inheritance completed Treaty-based return position as required by section 6114 1b.Article(s) - XXII Canada/U.S. Tax Treaty Article XXII - Other Income 1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention, shall be taxable only in that State, except that if such income arises in the other Contracting State, it may also be taxed in that other State. 2. To the extent that income distributed by an estate or trust is subject to the provisions of paragraph 1, then, notwithstanding such provisions, income distributed by an estate or trust which is a resident of a Contracting State, to a resident of the other Contracting State who is a beneficiary of the estate or trust, may be taxed in the first-mentioned State and according to the laws of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the income: provided, however, that such income shall be exempt from tax in the first-mentioned State to the extent of any amount distributed out of the income arising outside that State. Client's Name received $_____ from Name of Company, as a distribution of the estate of Name of Deceased Person Client's Name is a resident and citizen of Canada
Article 25(3) - Non-Discrimination Treaty-based return position as required by section 6114 1b.Article(s) - XXV (3) 2.IRC Section 6013(a)(1) 4.Non-Discriminaion Canada/U.S. Tax Treaty Where a married individual who is a resident of Canada and not a citizen of the United States has income that is taxable in the United States pursuant to Article XV (Income from Employment), the United States tax with respect to such income shall not exceed such proportion of the total United States tax that would be payable for the taxable year if both the individual and his spouse were United States citizens as the individual’s taxable income determined without regard to this paragraph bears to the amount that would be the total taxable income of the individual and his spouse. Taxpayer earns $_____ USD of wages taxable in U.S. under Article XV (Dependent Personal Services) Taxpayer earns $_____ USD of wages taxable only in Canada. Taxpayer's spouse earns $_____ USD of wages taxable only in Canada. Taxpayer's spouse earns $_____ USD of U.S. source _____ income, taxed by the United States at _____ percent pursuant to Article X (Dividends). Taxpayer's taxable income for U.S. Purposes shown on 1040NR, is $_____ USD. The U.S. Federal tax with respect to such income is $_____ USD. The U.S. State tax with respect to such income is $_____ USD. The Total U.S. tax with respect to such income is $_____ USD. The total U.S. tax payable by Taxpayer and Taxpayer's spouse if both were U.S. citizens and all their income arose in the United States would be $_____ USD on AGI of $_____ USD The joint taxable income for U.S. Purposes shown on 1040, determined without regard to paragraph 4, is $_____ USD. The joint taxable income for U.S. Purposes, shown on the hypothetical 1040, is $_____ USD. The U.S. Federal tax with respect to such income is $_____ USD. The U.S. State tax with respect to such income is $_____ USD. Pursuant to paragraph 4, the U.S. tax imposed on Taxpayer's wages from U.S. sources is limited to $_____ USD (calculated as $_____ USD*[$_____ USD/$_____ USD]) Taxpayer's spouse's U.S. tax liability with respect to the U.S. source dividends remains $_____ USD. Schedule 3 (line Z) include the benifit of $_____ USD ($_____ USD-$_____ USD)
Article 29(B-2) - Pro rata unification Credit Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XXIX B-2 2.IRC Section 2102 Canada/U.S. Tax Treaty The decedent was a Canadian resident but not a U.S. citizen at the time of death. Pursuant to Article XXIX B-2 of the U.S./Canada Tax Treaty, the estate can take a "pro rata" unified credit to compute the U.S. estate tax on U.S. situs property. The pro rata credit under the Canadian treaty is determined by multiplying the exclusion amount available to a U.S. citizen decedent by a fraction of the value of the decedent's U.S. assets over the value of the decedent's world-wide assets. List of U.S. situs property: $_____ USD Total U.S. situs property is: $_____ USD Total Worldwide assets: $_____ USD	Article 29(B-3) - Canadian Marital Credit Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XXIX B-3 2.IRC Section 2056 Canada/U.S. Tax Treaty The decedent was a Canadian resident but not a U.S. citizen at the time of death. The decedent was married to a Canadian resident who is the decedent's surviving spouse. The estate transferring property to the Canadian surviving spouse meets the five conditions to be entitled to the nonrefundable marital credit against U.S. estate tax. 1. Property is passing to the surviving spouse 2. The individual was at the time of death a resident of Canada 3. The surviving spouse is a resident of Canada 4. The deceased individual and surviving spouse are Citizens of Canada 5. The executor elects the benefit. Pursuant to Article XXIX B-3 of the U.S./Canada Tax Treaty, the estate can take the lesser of the prorated unified credit and the amount of estate tax that would otherwise be imposed by the United States on the transfer of qualifying property. Prorated unified credit = $_____ USD Amount of the Estate Tax = $_____ USD	Article 29(B-8) - CA_Small_Estate Treaty-based return position as required by section 6114 U.S. citizen or resident in the United States 1b.Article(s) - XXIX B-8 2.IRC Section 2103 The decedent was a Canadian resident but not a U.S. citizen at the time of death. Pursuant to Article XXIX B - 8 of the U.S./Canada Tax Treaty, at the time of death, the entire gross estate at the time of death does not exceed 1.2 million USD. The United States may impose its estate tax upon property forming part of the estate of the individual only if any gain derived by the individual from the alienation of such property would have been subject to income taxation by the United States in accordance with Article XIII (Gains). Total of estate : $_____