Tax treaty between Canada and US – US Tax Court rules AMT FTC limitation prevails over treaty

The US Tax Court has held that the 90% foreign tax credit (FTC) limitation on the alternative minimum tax (AMT) contained in Section 59 of the US Internal Revenue Code (IRC) prevails over the requirement in the 1980 US_Canada tax treaty to eliminate double taxation. William D. and Judith A. Jamieson v. Commissioner of Internal Revenue, Docket No. 16421-05 (29 April 2008).

The taxpayers were US citizens who resided in Canada in 2003. In filing their US income tax re…