Tax implications of Global / International investment accounts in CAD funds?

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sedona
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Joined: Fri Jan 26, 2018 11:48 pm

Tax implications of Global / International investment accounts in CAD funds?

Post by sedona » Wed Aug 08, 2018 3:07 pm

Some financial institutions provide global/international investment accounts. Basically, these accounts allow you to keep your funds in CAD in the US and invest in stocks and other securities. With these accounts, since the account resides in the US it makes it easier to file taxes and no need to do Canadian tax and appears to be better than having money sit in saving accounts in Canada. I am wondering if anyone has done this and if there are any tax implications with this.

nelsona
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Location: Nowhere, man

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by nelsona » Wed Aug 08, 2018 4:08 pm

You'd need to give us an example, but I'm not sure what "implications" you would be wondering about. You buy, you sell, you make profit, you pay tax.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

sedona
Posts: 17
Joined: Fri Jan 26, 2018 11:48 pm

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by sedona » Wed Aug 08, 2018 5:24 pm

Is there a special reporting required for such Accounts?
How does currency exchange take into account in this case, since CAD -> USD fluctuate all the time? Say, there is no actual gain from your investment, but the CAD -> USD conversion resulted in a higher amount? would that lead to taxation even though there is no actual gain as far as the CAD is concerned?

nelsona
Posts: 16177
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by nelsona » Thu Aug 09, 2018 12:23 am

These transactions would all be evaluated in USD at the moment they are made. The only gain/loss you would be interested in is in USD, to report on your 1040.

There would be no special FATCA reporting , since these are held in US brokerages. Of course, it is possible that some of your investments would be considered PFICS, requiring special treatment.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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