Capital gains in the US while living in Canada

[danielc]

Hello,

Suppose I am a Canadian living in the US. I buy a stock in the US for $100. A few years later it appreciates to $130. Then I move back to Canada, and keep the stock untouched at the US broker. Then it appreciates to $150. Then I sell it.

Question: What tax do we owe and to whom?

- The first $30 of appreciation occurrs while I'm in the states. Does that mean that the US will want to tax that?

- The stock gets sold while I'm in Canada. Does the US charge cap gains tax or witholding tax? Or neither? I read elsewhere that the US does not charge capital gains tax on non-residents.

- What tax rate would Canada charge? Capital gains or regular income? Would Canada see a $50 or a $20 cap gain? (i.e. is the capital gain counted relative to when I bought the stock or relative to when I moved?)

I would be grateful for any information you might offer.

Cheers.

[nelsona]

The gains while in US would nothe taxed at all, if you were no longer resident there ( and not aGC ir USCitizen)
When you returned to Canada, your stock wiuld be re-evaluated at $130 for Cdn tax putposes, so when you eventually solduiu woukd owe Canada only on the gain after $130
Tjis is a known strategy for Canadian returning ti Canada after living in US

[gang.sun]

So no one tax the first $30. Right?

[nelsona]

correct. As long as neither of you are required to file as residents of US.