I am a Cdn resident (working in Canada now) with a US greencard. With my previous employer (in the US) I aquired company stock (publiclly traded), a retirement account and established an investment account with a US broker.
With regards to the company stock there has been significant capital gains and I wish to sell the shares. Being a Cdn reisident now I assume that I would be subject to Cdn tax on the cap. gain as well as US capital gains tax (because I still hold my greencard). It is my understanding that the Foreign Tax Credits will offset most of the double taxation but not all?
The retirement account I wish to move into a RRSP here in Canada and from what I understand this can work. Is it a LIRA or personal RRSp the funds are going to go into?
My brokerage account has suffered some capital losses. In closing it out can the capital losses be used to offset the gains from either of my Cdn or US returns?
thanks
US/Can Tax
Moderator: Mark T Serbinski CA CPA
In Canada, youy will only be subject to capital gains or losses calculated from the value the day you arrived back in Canada.
As a green card holder but not a citizen, it is my understanding of the treaty that you are exempt from capital gains tax on non-real estate investments. Thgis should be handled by a professional.
Moving your IRA to Canada is not simple, and would not save you any tax, neither now nor in future. You would have to pay US tax and penalty even if you transferred it to Canada (it would be a straight RRSP account, not locked-in). The crediting of tax is not straightforward. Unless it is a small ammount, you should leave it alone in US. This too, should be handled by a pro.
<i>nelsona non grata... and non pro</i>
As a green card holder but not a citizen, it is my understanding of the treaty that you are exempt from capital gains tax on non-real estate investments. Thgis should be handled by a professional.
Moving your IRA to Canada is not simple, and would not save you any tax, neither now nor in future. You would have to pay US tax and penalty even if you transferred it to Canada (it would be a straight RRSP account, not locked-in). The crediting of tax is not straightforward. Unless it is a small ammount, you should leave it alone in US. This too, should be handled by a pro.
<i>nelsona non grata... and non pro</i>