This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I am US resident still holding mutual funds in a Canadian brokerage account, and I'm a non-resident in Canada for tax purposes. The brokerage has been withholding 15% on the monthly dividends (as they should).
However, at the end of the year, the funds distribute a "Capital gains distribution"--presumably proceeds from stuff they sold through the year, as outlined here: http://mutualfunds.about.com/od/mutualf ... pgains.htm
My brokerage did NOT withhold anything on these year-end capital gains distributions. (However, the distribution still shows up as "Dividend" on the line item.)
My question is: should it? If not, should I simply report at as capital gains on my US tax return and do nothing else in Canada?
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
Since cap gains are not taxable in Canada for US residents, all was done correctly, and you report them on your US return.
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