6 worked US Tax Return for Canadians 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 us tax return for canadians work, not a specific client's file.
Case Study 1 · Sale and succession
Share Sale Restructured, $885,000 Less Tax On Closing — US Rental Owner, Surrey
Client: A Canadian resident with a US rental property · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Tax saved on closing$885,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A Canadian resident with a US rental property, Surrey, British Columbia
A Canadian resident with a US rental property in Surrey, British Columbia was preparing to sell. Due diligence surfaced no valuation on file to support the price the parties had agreed, which would have reduced the price or killed the deal outright.
What we did for A Canadian resident with a US rental property, Surrey, British Columbia
We cleaned up the historical file, reconstructed the day count on both sides of the border and documented the residency and treaty position before either revenue authority asked, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A Canadian resident with a US rental property, Surrey, British Columbia
The deal closed at the agreed price. $885,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 2 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 5 Days — Cross-Border Contractor, Barrie
Client: A contractor working on both sides of the border · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Close time before8 weeks
Close time after5 days
Year-endReview, not rebuild
The situation — A contractor working on both sides of the border, Barrie, Ontario
The accounting file at a contractor working on both sides of the border in Barrie, Ontario was built on US tax paid but no foreign tax credit claimed on the Canadian return. The year-end had taken 8 weeks each of the last three years.
What we did for A contractor working on both sides of the border, Barrie, Ontario
We aligned the Canadian and US reporting of the same income so the foreign tax credit claim carried support on both returns and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A contractor working on both sides of the border, Barrie, Ontario
The file reconciles. Month-end closes in 5 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
Case Study 3 · Planning that cut the bill
Remuneration Review Saved $56,000 Across Corporate And Personal Returns — Inbound Assignee, Halifax
Client: An inbound transferee on assignment · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Combined saving$56,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — An inbound transferee on assignment, Halifax, Nova Scotia
Nothing was wrong at an inbound transferee on assignment in Halifax, Nova Scotia — the filings were on time and accurate. What they were not was planned. 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net had never been reviewed.
What we did for An inbound transferee on assignment, Halifax, Nova Scotia
We filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result — An inbound transferee on assignment, Halifax, Nova Scotia
$56,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 4 · CRA review defended
$142,000 Reassessment Reduced To Nil On Review — US Retirement Account Holder, Kelowna
Client: A dual citizen with a US retirement account · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$142,000
Prior filingsUndisturbed
The situation — A dual citizen with a US retirement account, Kelowna, British Columbia
A review notice arrived at a dual citizen with a US retirement account in Kelowna, British Columbia covering us tax return for canadians for two tax years. The auditor's working position was an adjustment of $142,000, driven by foreign accounts that had passed the $100,000 T1135 threshold three years earlier.
What we did for A dual citizen with a US retirement account, Kelowna, British Columbia
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 — A dual citizen with a US retirement account, Kelowna, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $142,000 and leaving the prior filings undisturbed.
Case Study 5 · Objection and relief
Desk-Review Assessment Of $107,000 Vacated — US-Facing Canadian Corporation, Saskatoon
Client: A Canadian corporation with US customers · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Assessment vacated$107,000
Supporting recordsNow on file
AccountCleared
The situation — A Canadian corporation with US customers, Saskatoon, Saskatchewan
A Canadian corporation with US customers in Saskatoon, Saskatchewan was carrying $107,000 of penalties and interest arising from winters spent in the United States with the day count kept casually and no residency position documented anywhere, much of it accumulated during a period the CRA itself had delayed.
What we did for A Canadian corporation with US customers, Saskatoon, Saskatchewan
We filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A Canadian corporation with US customers, Saskatoon, Saskatchewan
The assessment was vacated. $107,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $115,000 Of Cash Released — US Pension Recipient, Guelph
Client: A Canadian resident receiving US pension income · Where: Guelph, Ontario · Engagement: 3 weeks, fixed fee
Cash released$115,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A Canadian resident receiving US pension income, Guelph, Ontario
Revenue at a Canadian resident receiving US pension income in Guelph, Ontario was up sharply and cash was tighter than ever. Underneath it sat invoices paid to a non-resident consultant working on site in Canada with no Regulation 105 withholding taken.
What we did for A Canadian resident receiving US pension income, Guelph, Ontario
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A Canadian resident receiving US pension income, Guelph, Ontario
$115,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
