6 US Form 1040-NR Filing 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 us form 1040-nr filing work, not a general example.
Case Study 1 · Sale and succession
$215,000 Sheltered By The Lifetime Capital Gains Exemption — Emigrant Who Left Canada, Surrey
Client: An emigrant who left Canada mid-year · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Gain sheltered$215,000
ClosingOn schedule
Share qualificationMet
The situation
An emigrant who left Canada mid-year in Surrey, British Columbia had an offer on the table and 30 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund well ahead of the closing date.
The result
The sale closed on schedule with $215,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Backlog brought current
Collections Halted And $133,000 Cut From A 4-Year Backlog — Canadian Corporation with US, Winnipeg
Client: A Canadian corporation with US customers · Where: Winnipeg, Manitoba · Engagement: 10 weeks, fixed fee
Balance reduced by$133,000
Backlog cleared4 years
CollectionsHalted
The situation
By the time a Canadian corporation with US customers in Winnipeg, Manitoba called, 4 years were outstanding and the CRA had assessed on estimates. Underneath it sat foreign accounts that had passed the $100,000 T1135 threshold three years earlier.
What we did
We reconstructed the records year by year and restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward. 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 $133,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $63,000 Saved Each Year — Inbound Transferee on Assignment, Edmonton
Client: An inbound transferee on assignment · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
Annual saving$63,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
An inbound transferee on assignment in Edmonton, Alberta 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 outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely — 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 $63,000 a year while removing the exposure the old one carried.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $91,000 Vacated — Non-Resident Owning Canadian Rental, Vancouver
Client: A non-resident owning Canadian rental property · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Assessment vacated$91,000
Supporting recordsNow on file
AccountCleared
The situation
A non-resident owning Canadian rental property in Vancouver, British Columbia was carrying $91,000 of penalties and interest arising from a US LLC taxed as a corporation in Canada, producing double tax on the same income, much of it accumulated during a period the CRA itself had delayed.
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $91,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Deadline rescue
Filed On Time From A Standing Start, $40,000 Penalty Avoided — Canadian Resident with a, Toronto
Client: A Canadian resident with a US rental property · Where: Toronto, Ontario · Engagement: 7 weeks, fixed fee
Penalty avoided$40,000
Turnaround7 weeks
FiledOn time
The situation
A Canadian resident with a US rental property in Toronto, Ontario came to us 7 weeks before its filing deadline with US tax paid but no foreign tax credit claimed on the Canadian return. A late filing would have triggered a penalty of roughly $40,000 before interest.
What we did
We worked backwards from the deadline. We filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $40,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 6 · Records and systems rebuilt
33 Months Reconciled And $7,700 Of Input Tax Recovered — Canadian with a US, Guelph
Client: A Canadian with a US employer · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Months reconciled33
Input tax recovered$7,700
Close time5 days
The situation
A Canadian with a US employer in Guelph, Ontario was carrying 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net. Nothing reconciled, and every filing started with 33 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward, then set the routine that keeps it clean.
The result
33 months reconciled to the bank. The close now takes 5 days, and $7,700 of previously unclaimable input tax was recovered in the process.
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.
