Dual citizen US/Canada / 64 years old
Married – husband lives in Washington state
Have been working in Canada for 9 years (Arrived Feb 2015) and plan to leave for WA next week.
$450k USD capital gains on taxable US Vanguard Mutual Fund over 9 years in Canada
2024 potential capital gains tax $120k CAD
I've spoken with a cpa about deemed disposition and adjusting the cost basis in the US for actual sales with form 8833. I believe I will be selling this a little bit at a time for years. Will I always need to engage a cross border CPA? One advantage of deemed disposition is the chance to unwind should I return to Canada. I would like to come back to Canada but currently do not have plans.
I am wondering if selling the fund on the Canadian side and rebuying on US side is cleaner and easier to manage going forward.
Managing cap gains tax liability cross border
Moderator: Mark T Serbinski CA CPA
Re: Managing cap gains tax liability cross border
You also have the choice of posting security, and then only paying the exit tax as you sell the investments (CRA Form T1244).
If bumping up of cost value ends up being your only complication in your US return, I would think you would not need a tax specialist to do this. Rev Proc 2010-19 is pretty simple to apply year after year.
If you sell you can't unwind, of course.
If bumping up of cost value ends up being your only complication in your US return, I would think you would not need a tax specialist to do this. Rev Proc 2010-19 is pretty simple to apply year after year.
If you sell you can't unwind, of course.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Managing cap gains tax liability cross border
hi,
I am in a similar situation.
In 2023, I emigrated from Canada to US, and had filed (mailed) T1 income tax (emigrant), T1243, T1244 etc. to CRA last month (April). For T1244, I am looking for a do-able way to post security, for a working class.
Did anyone ever have a successful case in getting a letter of credit from a Canadian financial institution? I was thinking of buying some GICs in a bank, which I doubt now. Regards.
I am in a similar situation.
In 2023, I emigrated from Canada to US, and had filed (mailed) T1 income tax (emigrant), T1243, T1244 etc. to CRA last month (April). For T1244, I am looking for a do-able way to post security, for a working class.
Did anyone ever have a successful case in getting a letter of credit from a Canadian financial institution? I was thinking of buying some GICs in a bank, which I doubt now. Regards.
Re: Managing cap gains tax liability cross border
Typically, the investment in question can serve as security. CRA can work with you on this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Managing cap gains tax liability cross border
hi Nelsona,
Thanks a lot for your message. I have read your posts here for many years and know your warm-heartedness :-)
The thing is, the Canadian self-directed brokage that I still have some funds with (yes, has restriction on trading) is not willing to sign legal letters on this; while US self-directed brokerages seem not eligible to do this. Do you know any Canadian or US banks/brokerages that can do this with CRA, other than mortgage or loan department? Regards.
Thanks a lot for your message. I have read your posts here for many years and know your warm-heartedness :-)
The thing is, the Canadian self-directed brokage that I still have some funds with (yes, has restriction on trading) is not willing to sign legal letters on this; while US self-directed brokerages seem not eligible to do this. Do you know any Canadian or US banks/brokerages that can do this with CRA, other than mortgage or loan department? Regards.