6 US Form 1065 Partnership 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 1065 partnership filing work, not a general example.
Case Study 1 · CRA review defended
$55,000 Reassessment Reduced To Nil On Review — US Citizen Living in, Lethbridge
Client: A US citizen living in Canada · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$55,000
Prior filingsUndisturbed
The situation
A review notice arrived at a US citizen living in Canada in Lethbridge, Alberta covering us form 1065 partnership filing for two tax years. The auditor's working position was an adjustment of $55,000, driven by 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net.
What we did
Rather than negotiate, we rebuilt the record. We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $55,000 and leaving the prior filings undisturbed.
Case Study 2 · Backlog brought current
Collections Halted And $109,000 Cut From A 7-Year Backlog — Non-Resident Owning Canadian Rental, Red Deer
Client: A non-resident owning Canadian rental property · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Balance reduced by$109,000
Backlog cleared7 years
CollectionsHalted
The situation
By the time a non-resident owning Canadian rental property in Red Deer, Alberta called, 7 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 outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely. 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 $109,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $43,000 Penalty Avoided — Canadian with a US, Halifax
Client: A Canadian with a US employer · Where: Halifax, Nova Scotia · Engagement: 5 weeks, fixed fee
Penalty avoided$43,000
Turnaround5 weeks
FiledOn time
The situation
A Canadian with a US employer in Halifax, Nova Scotia came to us 5 weeks before its filing deadline with a US LLC taxed as a corporation in Canada, producing double tax on the same income. A late filing would have triggered a penalty of roughly $43,000 before interest.
What we did
We worked backwards from the deadline. We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused, 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 $43,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Planning that cut the bill
$74,000 Saved By Correcting What Prior Filings Had Missed — Canadian Resident with a, Vancouver
Client: A Canadian resident with a US rental property · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Saving identified$74,000
RecurringYes
Positions documentedAll
The situation
A Canadian resident with a US rental property in Vancouver, British Columbia asked for a second opinion on us form 1065 partnership filing after three years of rising tax. The review found a departure year filed as a normal resident return with no deemed disposition reported.
What we did
We built the comparison first — current structure against two alternatives — and then filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund.
The result
First-year saving of $74,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $138,000 Across 7 Open Years — Snowbird Spending Winters in, Moncton
Client: A snowbird spending winters in Arizona · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Recovered$138,000
Open years claimed7
Ongoing trackingIn place
The situation
An incentive review at a snowbird spending winters in Arizona in Moncton, New Brunswick started from a simple question: what has never been claimed? The answer ran to 7 years, driven by US tax paid but no foreign tax credit claimed on the Canadian return.
What we did
We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $138,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $66,000 Saved Each Year — Emigrant Who Left Canada, Burnaby
Client: An emigrant who left Canada mid-year · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Annual saving$66,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
An emigrant who left Canada mid-year in Burnaby, British Columbia had outgrown the structure it started with. 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net 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 $66,000 a year while removing the exposure the old one carried.
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.
