Capital gains in the US while living in Canada

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danielc
Posts: 1
Joined: Sat Jun 30, 2018 3:28 pm

Capital gains in the US while living in Canada

Post by danielc » Sat Jun 30, 2018 3:34 pm

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
Posts: 16046
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Capital gains in the US while living in Canada

Post by nelsona » Sat Jul 07, 2018 6:35 am

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
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

gang.sun
Posts: 4
Joined: Sun Aug 05, 2018 1:37 am

Re: Capital gains in the US while living in Canada

Post by gang.sun » Sun Aug 05, 2018 2:21 am

So no one tax the first $30. Right?

nelsona
Posts: 16046
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Capital gains in the US while living in Canada

Post by nelsona » Mon Aug 06, 2018 4:23 pm

correct. As long as neither of you are required to file as residents of US.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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