I am filing an Emigrant return for 2019.
The only income that I had after I left Canada was from the sale of my stocks in my Canadian brokerage account.
Most were Canadian stocks and 1 TD Mutual Fund (held in USD currency).
I have already put them on the deemed disposition forms as of date of departure and reported deemed disposition capital gain on Schedule 3.
Given that I was non-resident, but sold stocks still held in Canada in my brokerage account, I have a couple questions:
1) Where should I put the resulting capital gain on the Statement of World Income?
a) Canadian source income during Canadian non-resident period? or
b) Foreign source income earned during Canadian non-resident period?
2) Since, I actually sold them after I became non-resident of Canada, I assume I need to calculate this capital gain using my new ACB (FMV on departure date)?
Thanks!
Statement of World Income
Moderator: Mark T Serbinski CA CPA
Re: Statement of World Income
Once you left, those gains are considered US gains. Doesn't matter where they were held.
To benefit from the increase in ACB, you must first determine the deemed disposition value (reported on your return), and then file a statement with -IRS in accord with Rev Proc 2009 - 15.
To benefit from the increase in ACB, you must first determine the deemed disposition value (reported on your return), and then file a statement with -IRS in accord with Rev Proc 2009 - 15.
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Re: Statement of World Income
But you will be reporting the deemed disposition as part of your CDn source income on your return. Only the part of the gain after leaving will be foreign.
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Re: Statement of World Income
That clears it up. Thank you!
Re: Statement of World Income
Sorry, to clarify did you mean Rev Proc 2010-19?
I am not familiar with the other...
I am not familiar with the other...
Re: Statement of World Income
Yes.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing