Can US stocks be transferred to the US or must they be sold?

canuckmom · Post by **canuckmom** » Thu Jun 07, 2007 8:18 am

We have some US stocks that were transferred up to Canada by an online brokerage a few years ago without our permission.

Now that we are living in the US, can they be transferred to the US? or do they need to be sold first? We paid deemed disposition tax on them.

nelsona · Post by **nelsona** » Thu Jun 07, 2007 8:40 am

With or without your permission, this was the correct thing to do, but I digress.

You can transfer these down to a US brokerage now that you live there.

Remember, that unless you are a US citizen, the cost basis of those sticks for IRS purposes (when you eventually sell them) becomes the deemed disposition value you declared on your 2006 Cdn return, if this is to your advantage, otherwise you may choose the original cost basis as normal (ie. the basis you listed on your 2006 Cdn return).

canuckmom · Post by **canuckmom** » Thu Jun 07, 2007 8:57 am

Thanks nelsona

Can the transferring institution potentially withhold taxes?

nelsona · Post by **nelsona** » Thu Jun 07, 2007 9:53 am

No. This is not a sale. Even if it were (if you decided to sell instead of transfer), you are exempted from any withholding by treaty, and if some should be taken in error, you would get it back from CRA.

But this process is done quite frequently, so should not be difficult. if the person you talk to hesitates, ask for someone else in that office.