US-based mutual fund taxes

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US-based mutual fund taxes

Post by ewax »

I've owned shares in a mutual fund in the U.S. for about 20 years. A few years ago, I moved to Canada (I'm a dual citizen) and have doing my US and Canadian tax returns.

I've decided I want to sell this mutual fund but want to go about it in the right way. Recently, I called up the company running the mutual fund and changed my address to my Canadian address. Now that I'm a Canadian resident and have changed my address with the mutual fund to my Canadian address, if I sell the mutual fund would it be considered Canadian income whose tax I'd pay to Canada (and claim credit for on my US return) or would I need to pay the tax to the US (and claim credit on my Canadian return) because of the mutual fund company being based in the US?

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Post by nelsona »

The address on file has nothing to do with how the fund is taxed. Once you became a Cdn resident, your investments are taxed in both countries, but PRIMARILY Canada, and US will credit you with the Cdn tax (counter intuitive because you are now Cdn resident). Kind of how you described, but not for the reason you thought. Its your residency, not the address on file. Even if you listed a US address, it would still work that way.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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