In other words, if you can't find a broker to keep your stocks, you might as well sell them as you leave (since you will have to report as if you sold them anyways), selling your losers just after leaving.
Then just buy similar us-traded stocks or mutial funds.
what to do with my stocks after moving to the US
Moderator: Mark T Serbinski CA CPA
Carry loss forward and capital losses
Just to clarify: when I move my investments to the US after becoming a resident, the adjusted cost basis is transferred as well correct? Therefore, I can claim a capital loss in the US based on [i]the original cost when I bought the security in Canada[/i] not when I became a US resident. Is this correct?
Also, to ensure that I can carry forward my capital losses in Canada indefinitely, is it prudent to file a Canadian tax return every year while I am a non-resident?
Also, to ensure that I can carry forward my capital losses in Canada indefinitely, is it prudent to file a Canadian tax return every year while I am a non-resident?
Yes, transferring your stocks does not change their cost basis for US purposes. You are never required to use the Cdn deemed disposition value as your new basis, and you would not ant to do this for sdtock on which you are in a losing position.
No it would NOT be prudent to file a Cdn tax return yearly. You will file a departure return, and that will suffice. Only file a non-resident return when you have income to report, or tax to be refunded.
No it would NOT be prudent to file a Cdn tax return yearly. You will file a departure return, and that will suffice. Only file a non-resident return when you have income to report, or tax to be refunded.
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
All property (except for exceptions for certain Cdn property which remains taxable after departure) is subject to deemed disposition.
There is no minimum threshold for reporting these dispositions.
The property listing form (T1161) need not match up with the property that you report deemed dipsostions on (T1243); the criteria for that list may not be the same as for deemed disposition.
Read the Emigrants guide carefully.
There is no minimum threshold for reporting these dispositions.
The property listing form (T1161) need not match up with the property that you report deemed dipsostions on (T1243); the criteria for that list may not be the same as for deemed disposition.
Read the Emigrants guide carefully.
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
Great thanks nelsona that clarified it.
Another issue getting back to stocks: as I am not able to trade (or at least buy) on my Canadian non-registered account, I am looking for a US discount brokerage but am having some difficulty. They are claiming that since I am Cdn citizen (even though I am a US resident, pay US taxes, have an SSN) I cannot open an account with them. They cite this paragraph:
"There is a group of countries which are signatories to a brokerage treaty requiring foreign brokerage firms to be licensed in those countries in order to do business with its residents."
Countries include Canada, North Korea, Burma, etc. However, I am no longer a resident of Canada and yet they still refuse.
Has anyone else dealt with this and/or found some luck opening a US account?
Another issue getting back to stocks: as I am not able to trade (or at least buy) on my Canadian non-registered account, I am looking for a US discount brokerage but am having some difficulty. They are claiming that since I am Cdn citizen (even though I am a US resident, pay US taxes, have an SSN) I cannot open an account with them. They cite this paragraph:
"There is a group of countries which are signatories to a brokerage treaty requiring foreign brokerage firms to be licensed in those countries in order to do business with its residents."
Countries include Canada, North Korea, Burma, etc. However, I am no longer a resident of Canada and yet they still refuse.
Has anyone else dealt with this and/or found some luck opening a US account?
Ther is no need to identify yourself as a Cdn citizen when dealing with these brokers. Present your SSN, and that is sufficient. Once you've opened the account, THEN have your stocks transfered. Note that Cdn-only traded stocks are not going to be easily transfered. You should only be transferring US-traded stocks.
You are correct that your US legal residency is sufficient. You are not a resident of canada.
You are correct that your US legal residency is sufficient. You are not a resident of 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
If a Canadian citizen moved to the US as a US resident, and kept a non-RSP account open to hold investments, that account could potentially trigger investment income (interest, dividends, etc?). As a Canadian resident the investment income would be reported when doing Canadian taxes.
But, as a US resident, what happens? I believe NR4's are sent, and this income is included as income in the US taxes. What about in Canada - are there withholdings? If so, do you have to use foreign credits to get them back?
Thanks!
But, as a US resident, what happens? I believe NR4's are sent, and this income is included as income in the US taxes. What about in Canada - are there withholdings? If so, do you have to use foreign credits to get them back?
Thanks!
Only dividends would have tax withheld, at 15% rate for US residents.
Tax would not be owed to canada on interest, and would only be owed to canada on gains from Real estate and resources investments. Thse would be reported on a non-resident tax return. Remember that all other investmebts would have been deemed dipsosed on your departure return, ending Cdn tax on cap gains for those investments.
Tax would not be owed to canada on interest, and would only be owed to canada on gains from Real estate and resources investments. Thse would be reported on a non-resident tax return. Remember that all other investmebts would have been deemed dipsosed on your departure return, ending Cdn tax on cap gains for those investments.
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
non RRSP investments
Hello
But for the departure tax how would you sell a non RRSP GIC for instance ? I understand the stocks part of it but a term deposit is really interest income which has to be taxed at source (used to be that way) on the NR4.
But for the departure tax how would you sell a non RRSP GIC for instance ? I understand the stocks part of it but a term deposit is really interest income which has to be taxed at source (used to be that way) on the NR4.