Moved to the US toward the end of the year: Fililg 1040 for full year with departure date on T1. For capital gains distributions derived from a Canadian mutual fund, is my US tax limited to 15% via treaty and the entire amount taxable in Canada? Or are the capital gains only taxable in Canada
thanks in advance
Ffirst year US. Canadian Capital gains Distribution
Moderator: Mark T Serbinski CA CPA
Its a capital gains disribution, therefore it is .. capital gains.
Capital gains are only taxable where you reside, So, any distribution you received after departure should only be taxed in US, not reported even in Canada (unless thay are resource based)
Had it been interest distribution it would be taxed 10% in canada, and then reported in US. Had i bee n dividends, it would have been 15% tax in Canada and then reported n US.
Once you live in US, there is no limit on US tax by treaty, only limits are on Canadian tax.
How come you are getting T1, when you are non-resident, did you forget to tell your fund manger that you left?
Capital gains are only taxable where you reside, So, any distribution you received after departure should only be taxed in US, not reported even in Canada (unless thay are resource based)
Had it been interest distribution it would be taxed 10% in canada, and then reported in US. Had i bee n dividends, it would have been 15% tax in Canada and then reported n US.
Once you live in US, there is no limit on US tax by treaty, only limits are on Canadian tax.
How come you are getting T1, when you are non-resident, did you forget to tell your fund manger that you left?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best