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Investors & landlords
ok, so "saving clause"
https://www.irs.gov/businesses/tax-treaties-can-affect-your-income-tax
"Most tax treaties have a saving clause that preserves the right of each country to
tax its own citizens and treaty residents as if no tax treaty were in effect"
However, on other hands, I see in the tax treaty the next, Article 6:
"Income derived by a RESIDENT of a Contracting State .... may be taxed in that other State"
So I don't see the "saving clause" here. I see that taxation going on by country, where property located.
If you have some knowledge, could you explain how it works for
US citizens, resident aliens, GC holders in a particular example?
About tax credit - it's clear. It can be claimed on form 1116.
https://www.irs.gov/businesses/tax-treaties-can-affect-your-income-tax
"Most tax treaties have a saving clause that preserves the right of each country to
tax its own citizens and treaty residents as if no tax treaty were in effect"
However, on other hands, I see in the tax treaty the next, Article 6:
"Income derived by a RESIDENT of a Contracting State .... may be taxed in that other State"
So I don't see the "saving clause" here. I see that taxation going on by country, where property located.
If you have some knowledge, could you explain how it works for
US citizens, resident aliens, GC holders in a particular example?
About tax credit - it's clear. It can be claimed on form 1116.
May 30, 2020
3:21 PM