Moved from Canada to US partway in 2018 - where to report Capital Gains?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
chunkstir
Posts: 1
Joined: Tue Feb 12, 2019 10:56 pm

Moved from Canada to US partway in 2018 - where to report Capital Gains?

Post by chunkstir »

Hoping for some input on my tax reporting for Capital Gains.

Dual Can and US citizen
Lived and worked in Canada for essentially all of my life.
Salaried job in Canada ended in August 2018
Salaried job in US began in same month.
Have been filing taxes in Canada and USA.

In August, I disposed of US stocks purchased via Canadian brokerage (so they've been witholding dividend income tax).

I declared non-resident of Canada in December 2018.

Do I have a choice in reporting the capital gains in US vs Canada at a rate that is most advantageous (my quick research is that US treats long-term capital gains at a lower rate than Canada) to me, or am I obliged to report that capital gains income in Canada?

thanks in advance!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Moved from Canada to US partway in 2018 - where to report Capital Gains?

Post by nelsona »

As in all previous years, you would be reporting these on BOTH returns, and getting credit for the Cdn tax on your US return.

What made December 2018 your departure date? Seems like you left in august, from what you say. If it was august, you would need to report as such, and do deemed disposoition on investemnts held at that time, and then US tax on any difference after.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply