6 Canada-US Capital Gains Tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to canada-us capital gains tax work, not a general example.
Case Study 1 · Records and systems rebuilt
Month-End Close Cut From 12 Weeks To 4 Days — Snowbird Spending Winters in, Victoria
Client: A snowbird spending winters in Arizona · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Close time before12 weeks
Close time after4 days
Year-endReview, not rebuild
The situation
The accounting file at a snowbird spending winters in Arizona in Victoria, British Columbia was built on US tax paid but no foreign tax credit claimed on the Canadian return. The year-end had taken 12 weeks each of the last three years.
What we did
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 4 days instead of 12 weeks, and the year-end is a review rather than a reconstruction.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $48,000 Saved Each Year — Emigrant Who Left Canada, Vancouver
Client: An emigrant who left Canada mid-year · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Annual saving$48,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
An emigrant who left Canada mid-year in Vancouver, British Columbia had outgrown the structure it started with. A departure year filed as a normal resident return with no deemed disposition reported was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $48,000 a year while removing the exposure the old one carried.
Case Study 3 · Missed incentive claimed
$106,000 In Credits Claimed That Prior Filings Had Missed — Shareholder of a US, London
Client: A shareholder of a US LLC · Where: London, Ontario · Engagement: 5 weeks, fixed fee
Credits claimed$106,000
Years adjusted3
Review outcomeNo adjustment
The situation
A shareholder of a US LLC in London, Ontario had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat a US LLC taxed as a corporation in Canada, producing double tax on the same income.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward.
The result
$106,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Planning that cut the bill
$37,500 Cut From The Annual Tax Bill — Canadian Corporation with US, Barrie
Client: A Canadian corporation with US customers · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$37,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A Canadian corporation with US customers in Barrie, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a US LLC taxed as a corporation in Canada, producing double tax on the same income on the table.
What we did
We modelled the current position against the alternatives before changing anything, then filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely.
The result
The change saved $37,500 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 5 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $38,000 — Dual Citizen with a, Ottawa
Client: A dual citizen with a US retirement account · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$38,000
Filed with23 days to spare
Next yearPapers ready
The situation
With the deadline for canada-us capital gains tax weeks away, a dual citizen with a US retirement account in Ottawa, Ontario was carrying foreign accounts that had passed the $100,000 T1135 threshold three years earlier. The exposure if the date slipped was around $38,000.
What we did
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 23 days to spare. $38,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Backlog brought current
Collections Halted And $46,000 Cut From A 5-Year Backlog — Inbound Transferee on Assignment, Regina
Client: An inbound transferee on assignment · Where: Regina, Saskatchewan · Engagement: 10 weeks, fixed fee
Balance reduced by$46,000
Backlog cleared5 years
CollectionsHalted
The situation
By the time an inbound transferee on assignment in Regina, Saskatchewan called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat US tax paid but no foreign tax credit claimed on the Canadian return.
What we did
We reconstructed the records year by year and filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $46,000, and a relief application addressed part of the accumulated interest.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
