Reporting US portions of Canadian ETFs while filing as dual status

[allstarrevenant]

Hi, I moved from Canada to the US in 2019 for work (lived in Canada for 5.5 months and US for 6.5) and plan to file as Dual Status so I'll be filing:

- Canadian tax return for the income I made in Canada during the half year I lived in Canada
- 1040 NR for any US sourced income I had while living in Canada (and a non-resident alien in the US)
- 1040 for worldwide income I made while a resident alien

Before I left Canada (and while a non-resident of the US), I liquidated a TFSA and non-registered investment account in Canada. Both those held Canadian Mutual Funds, but the funds consisted of some percentage of US equities and/or bonds in addition to Canadian equities. Since I have capital gains from those Canadian Mutual Funds, do I need to report on the 1040 NR some portion of the capital gains that came from the US equities WITHIN the Canadian Mutual Fund?

From my understanding, any US equities held in a Canadian ETF or Mutual Fund would have already had foreign tax withheld before I received any money from the sale.

I'll be reporting the entirety of the capital gains from the sales on my Canadian tax return, but I'm not sure if I need to do some manual calculation on my part for the percentage of the capital gains that came from US equities within the Canadian Mutual Fund and then report that on my 1040 NR to the IRS (for the non-resident portion of my Dual Status return)

[nelsona]

You migyt reconsider filing dual status, since you don't get standard deduction otherwise.

As to cap gains, it doesn't matter what holdings you had, they are not taxable before arrival in U if you chjoose dual status. All income would be taxable if you file full year, but you would then get credit for any CDn taxes paid.