Liquidating non-registered Canadian investment account, US Citizen, Canada-born

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StihlMS310
Posts: 1
Joined: Fri Mar 08, 2019 3:06 pm

Liquidating non-registered Canadian investment account, US Citizen, Canada-born

Post by StihlMS310 » Fri Mar 08, 2019 3:18 pm

Hey all. Born in Canada, immigrated to USA in 1997, now a US Citizen, living in USA.

My parents put money in an investment account in Canada for me when I was a child, and I haven't touched it for 25+ years. It's not an RRSP, just sat there accummulating gains. They would send T-3s to my parents' address, but I never paid any tax on them, and I stopped filing Canadian returns since 1998.

Tax consequences of liquidating this account now?

The Canadian account manager says there are no taxes owed to Canada since I'm no longer a Canadian resident. Correct?

My account statement shows the basis as $___ and gains of $___. It doesn't breakdown reinvested interest and dividends over the years, is that info needed or important?

Haven't yet spoken to my US accountant, I assume there will be US tax (perhaps state) on the gains at the capital gains rate? Any other consequences?

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

Re: Liquidating non-registered Canadian investment account, US Citizen, Canada-born

Post by nelsona » Fri Mar 08, 2019 5:06 pm

Technically, you should have paid tax on the gains that had accrued when you left Canada in 1998, but since that boat has sailed I wouldn't worry about it for Canada.
However, this was your account, and it was a foreign account, so, the income it generated was taxable in US, and the existence of the account and its value were subject to foreign reporting like FBAR, FATCA, PFIC.

For income taxes, you will owe on the entire gains from purchase date.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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