Hello all,
I had a large portfolio of stock in Canada at a brokerage firm that forced me to move my stock elsewhere last year. I was in the US at the time, so I moved it to eTrade (that my company uses as well).
In doing the taxes, since my stocks are now in the US (since last year when I became a Canadian NR). On the final Canadian Tax return for 2014 after non-residency, do I still report them and pay a hefty capital gains tax? Even if I have to, that would still be understandable and fair.
However, since the stocks are in the US, and if I *actually* sell them I would get hit with taxes yet again, i.e. double taxation. Or is there a treaty, or a cost base adjusting mechanism when I sell them in the US to account for the deemed disposition tax that I already paid in Canada?
Finally, since there will be a lot of tax on the capital gains 80-90K, is there a way to defer it?
I'm very confused. In fact, I think I made a blunder in moving them to the US. But at the time, no Canadian brokerage would let me open up an account from the US.
Please advise.
Thanks,
daze
Deemed Disposition on Stocks moved from Canada to US
Moderator: Mark T Serbinski CA CPA
There is a IRS rev proc 2010-19 that deals with this. Essentially, IRS will recognize the deemed disposition when you eventually sell, and you will pay tax to IRS only on the post-arrival gains.
If you read the CRA forms dealing with deemed disposition, they explain the ways you can defer paying the tax.
You are not allowed to have a CDn brokerage acct when living in US.
Moving them to US was a non-event. Where it gets tricky is if your have Cdn mutual, as you need to sell these when leaving.
If you read the CRA forms dealing with deemed disposition, they explain the ways you can defer paying the tax.
You are not allowed to have a CDn brokerage acct when living in US.
Moving them to US was a non-event. Where it gets tricky is if your have Cdn mutual, as you need to sell these when leaving.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
nelsona, thank you so much for answering. I can't thank you enough!
All the best.
And keep up the excellent work. I hope my question, and your answer gives someone a good night's sleep. I know I've lost hair, weight, and sleep over this complexity since I stepped foot outside Canada down South.
daze
All the best.
And keep up the excellent work. I hope my question, and your answer gives someone a good night's sleep. I know I've lost hair, weight, and sleep over this complexity since I stepped foot outside Canada down South.
daze