Case: Taxpayer’s Net Investment Income Tax Liability Subject to Offset by Treaty-Based Foreign Tax Credit (Fed. Cl.) (IRC §1411)

Plaintiff was entitled to a treaty-based foreign tax credit (FTC) against the net investment income tax (NIIT) imposed by I.R.C. §1411 because the Canada-U.S. tax treaty provides an independent basis for it, the U.S. Court of Federal Claims held, granting Plaintiff’s motion for partial summary judgment. For the 2015 tax year, Plaintiff, a U.S. citizen and Canadian resident, paid approximately $2 million in taxes to Canada and claimed an FTC of almost $1.4 million on his U.S. tax return, but did not offset his NIIT liability. Plaintiff subsequently filed an amended return, applying an FTC against the NIIT and claiming ...