6 worked Cross-Border Real Estate Tax case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to cross-border real estate tax work, not a specific client's file.
Case Study 1 · CRA review defended
$91,000 Proposed Adjustment Withdrawn In Full — US Citizen in Canada, London
Client: A US citizen living in Canada · Where: London, Ontario · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$91,000
File closed in4 weeks
Penalties assessedNone
The situation — A US citizen living in Canada, London, Ontario
A US citizen living in Canada in London, Ontario received a proposal letter opening a review of cross-border real estate tax. The CRA had identified a US LLC taxed as a corporation in Canada, producing double tax on the same income. It proposed an adjustment of $91,000, with 30 days to respond.
What we did for A US citizen living in Canada, London, Ontario
We treated the response as an evidence exercise rather than an argument. We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A US citizen living in Canada, London, Ontario
The proposed adjustment was withdrawn in full — all $91,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Client: A Canadian corporation with US customers · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Amount recovered$72,000
Reporting statusCurrent
Annual effortHours, not weeks
The situation — A Canadian corporation with US customers, Calgary, Alberta
Foreign holdings at a Canadian corporation with US customers in Calgary, Alberta had passed the reporting threshold without anyone noticing. Behind the disclosure problem sat foreign accounts that had passed the $100,000 T1135 threshold three years earlier.
What we did for A Canadian corporation with US customers, Calgary, Alberta
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused. We claimed the treaty relief and foreign tax credits on the Canadian return and corrected the disclosure position for the open years.
The result — A Canadian corporation with US customers, Calgary, Alberta
The treaty position was accepted and $72,000 was recovered. Reporting is now current and the annual process takes hours rather than weeks.
Case Study 3 · Missed incentive claimed
$51,000 In Credits Claimed That Prior Filings Had Missed — Arizona Snowbird, Kitchener
Client: A snowbird spending winters in Arizona · Where: Kitchener, Ontario · Engagement: 5 weeks, fixed fee
Credits claimed$51,000
Years adjusted7
Review outcomeNo adjustment
The situation — A snowbird spending winters in Arizona, Kitchener, Ontario
A snowbird spending winters in Arizona in Kitchener, Ontario had been filing for 7 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat dividends paid to a non-resident shareholder with nothing withheld, leaving the payer holding the liability.
What we did for A snowbird spending winters in Arizona, Kitchener, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we applied the treaty rate to the dividend withholding, filed the NR4 return, and remitted the shortfall before the CRA assessed the payer for it.
The result — A snowbird spending winters in Arizona, Kitchener, Ontario
$51,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Backlog brought current
Collections Halted And $15,000 Cut From A 6-Year Backlog — Non-Resident Landlord, Ottawa
Client: A non-resident owning Canadian rental property · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Balance reduced by$15,000
Backlog cleared6 years
CollectionsHalted
The situation — A non-resident owning Canadian rental property, Ottawa, Ontario
By the time a non-resident owning Canadian rental property in Ottawa, Ontario called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat dividends paid to a non-resident shareholder with nothing withheld, leaving the payer holding the liability.
What we did for A non-resident owning Canadian rental property, Ottawa, Ontario
We reconstructed the records year by year. We aligned the Canadian and US reporting of the same income so the foreign tax credit claim carried support on both returns. Each filing replaced an arbitrary assessment with a real one.
The result — A non-resident owning Canadian rental property, Ottawa, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $15,000, and a relief application addressed part of the accumulated interest.
Case Study 5 · Sale and succession
Share Sale Restructured, $275,000 Less Tax On Closing — US Retirement Account Holder, Moncton
Client: A dual citizen with a US retirement account · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Tax saved on closing$275,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A dual citizen with a US retirement account, Moncton, New Brunswick
A dual citizen with a US retirement account in Moncton, New Brunswick was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends. That would have reduced the price or killed the deal outright.
What we did for A dual citizen with a US retirement account, Moncton, New Brunswick
We cleaned up the historical file. We filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A dual citizen with a US retirement account, Moncton, New Brunswick
The deal closed at the agreed price. $275,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 6 · Structure rebuilt
Corporate Structure Rebuilt For $62,000 Of Annual Savings — Mid-Year Emigrant, Halifax
Client: An emigrant who left Canada mid-year · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Saving per year$62,000
DocumentationComplete
Transfer basisRollover
The situation — An emigrant who left Canada mid-year, Halifax, Nova Scotia
The structure at an emigrant who left Canada mid-year in Halifax, Nova Scotia dated from years earlier. It had been set up for a business that no longer existed. US tax paid but no foreign tax credit claimed on the Canadian return had become expensive.
What we did for An emigrant who left Canada mid-year, Halifax, Nova Scotia
We registered the payer for a non-resident withholding account, remitted the Regulation 105 amounts due, and applied for waivers covering the rest of the contract. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — An emigrant who left Canada mid-year, Halifax, Nova Scotia
$62,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
