Sale of US Securities

Badger · Post by **Badger** » Thu Feb 22, 2007 3:46 pm

I am Canadian and returned to Canada May 2006. I have a number of US stocks for which the market value was less than the book value that I previously paid. I have hung onto them and am now contemplating selling them but there would still be a capital loss. Am I still able to take advantage of this capital loss to offset it as against other capital gains, whether in the US or Canada, and if so how do I go about it?

Thanks

nelsona · Post by **nelsona** » Thu Feb 22, 2007 3:57 pm

Since you are no longer filing a US resident, any capital gains or losses are not reportable in US anymore, so the answer for US is NO, unless you hold onto these until you return to US.

As for Canada, all your stocks were revalued the day you moved back, so their new cost basis is not the original price. Thus any loss or gain will be based on what has happened to the stocks since you moved back.

As has been pointed out countless times here, you ALWAYS should sell losers before leaving US, and keep winners until after leaving US.