Discussion:FTC on US earned income?

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Discussion Forum Index --> Advanced Tax Questions --> FTC on US earned income?

Discussion Forum Index --> Tax Questions --> FTC on US earned income?

Tdh555 (talk|edits) said:

24 April 2014
Follow up to a prior discussion. I AM SEARCHING FOR AN ANSWER ON WHAT FOREIGN TAXES PAID ARE ALLOWABLE AS A CREDIT ON A US RETURN. Here are original facts/events:

Client has dual US/Canada citizenship. He has a consulting business in US and residency in CD; files a 1065 with a small office in US (agent here is 1% partner). Q: prior accountant filed US 1065 for business and individual 1040; CD accountants filed CD return for resident country and included US partnership income. Prior US accountant did not include FTC for CD taxes paid on business income on US return. Is this incorrect?

I just called his Canadian accountant who says he CANNOT take a foreign tax credit for Canadian taxes paid on his US business earnings (because they originated in the US); however, this income IS reported on his Canadian return and he pays that country's taxes on it. Should he not get a tax credit, appropriately reported (by type) on a form 1116? Help?

JR1 (talk|edits) said:

April 24, 2014
Take it over to www.taxprotalk.com now...that's where we're moving to.

Tdh555 (talk|edits) said:

24 April 2014
Will do...thanks.
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