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Foreign accrual property income (FAPI) is a term used in Canadian tax law to refer to certain types of passive income earned by a Canadian corporation from foreign investments. Here are the basic steps involved in calculating FAPI: Determine if the Canadian corporation has a foreign affiliate: A foreign affiliate is a corporation in which the Canadian corporation holds a significant level of control or ownership.

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Sidhu Lawyers, located in Calgary, Alberta, specializes in Personal Injury Law. The Sidhu Lawyer team is wholly committed to providing Calgarians with a respectful, knowledgeable, and relentless approach to their legal case. Our team ensures our clients obtain and experience legal counsel that is second to none.

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However, I can provide a general overview of IRS Form 5471 and its relevance for U.S. persons who own Canadian corporations. IRS Form 5471 is a tax form used by U.S. persons who are considered "Category 3" filers. This category includes U.S. citizens, residents, and certain domestic entities who own or have ownership in a foreign corporation, including Canadian corporations.

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