Hello david,
I found the extract of your 'Border book' very interesting and informative.
I have a cross border tax returns to prepare and would like some advice from a tax expert.
Here is the scenario:
The client is a US resident living and working in MA, USA. He has a
rental property in Vancover, BC, Canada. A Canadian tax preparer prepared his
Canadian tax returns. The returns shows rental income of $13,100 BUT zero
Net Income ( income of 13,100 less expense of 13,100). The rental property was
put into service in April 2003.
Question:
1) Can he claim on his US tax returns all the taxes (Transfer, GST, PST) he paid to
acquire the rental property as a Foreign Tax Credit. OR are these taxes just figures to be used to adjust the cost basis of the property?
2) Do I have to prepare a US fed form Schedule E and 4562 using converted dollar figures
(canada to US) and also show ZERO net income.
Your response to these two questions will be highly appreciated.
