Statement of World Income

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mj23
Posts: 9
Joined: Wed May 20, 2020 10:06 pm

Statement of World Income

Post by mj23 » Wed May 20, 2020 10:31 pm

I am filing an Emigrant return for 2019.
The only income that I had after I left Canada was from the sale of my stocks in my Canadian brokerage account.
Most were Canadian stocks and 1 TD Mutual Fund (held in USD currency).
I have already put them on the deemed disposition forms as of date of departure and reported deemed disposition capital gain on Schedule 3.
Given that I was non-resident, but sold stocks still held in Canada in my brokerage account, I have a couple questions:

1) Where should I put the resulting capital gain on the Statement of World Income?
a) Canadian source income during Canadian non-resident period? or
b) Foreign source income earned during Canadian non-resident period?

2) Since, I actually sold them after I became non-resident of Canada, I assume I need to calculate this capital gain using my new ACB (FMV on departure date)?

Thanks!

nelsona
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Re: Statement of World Income

Post by nelsona » Thu May 21, 2020 7:15 am

Once you left, those gains are considered US gains. Doesn't matter where they were held.

To benefit from the increase in ACB, you must first determine the deemed disposition value (reported on your return), and then file a statement with -IRS in accord with Rev Proc 2009 - 15.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16416
Joined: Wed Oct 27, 2004 2:33 pm
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Re: Statement of World Income

Post by nelsona » Thu May 21, 2020 7:16 am

But you will be reporting the deemed disposition as part of your CDn source income on your return. Only the part of the gain after leaving will be foreign.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mj23
Posts: 9
Joined: Wed May 20, 2020 10:06 pm

Re: Statement of World Income

Post by mj23 » Thu May 21, 2020 11:25 am

That clears it up. Thank you!

mj23
Posts: 9
Joined: Wed May 20, 2020 10:06 pm

Re: Statement of World Income

Post by mj23 » Sun May 24, 2020 12:45 am

Sorry, to clarify did you mean Rev Proc 2010-19?
I am not familiar with the other...

nelsona
Posts: 16416
Joined: Wed Oct 27, 2004 2:33 pm
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Re: Statement of World Income

Post by nelsona » Sun May 24, 2020 7:35 am

Yes.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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