Taxes for US-based US citizen owning Canadian partnership security

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
UncleLongHair
Posts: 1
Joined: Tue Oct 13, 2020 4:04 pm

Taxes for US-based US citizen owning Canadian partnership security

Post by UncleLongHair » Tue Oct 13, 2020 4:58 pm

I am a US citizen based in the US (I like Canada but have only visited :) ) and am interested in buying a certain security that is listed on the TSX but is not listed on a US exchange. It is not a corporation but a partnership and has historically paid a dividend which I believe would be taxable.

I could buy the stock by opening an account denominated in $CDN and buying it on the TSX, or there is a "grey market" tracking stock on the US OTC exchange and I could buy this in $USD. But my question is about taxes.

For dividends/distributions, the company does not provide a Schedule K to US holders of the security but does provide a Canadian T5013 form. But I have never filed taxes in Canada so don't know what I would do with that.

For capital gains,I imagine that either way that I owned the stock, in $CDN or $USD, I would owe capital gains tax when I sell (assuming there is a gain, and considering foreign exchange if $CDN). I am guessing that these taxes would be paid to the IRS similarly to gains on US-based securities. Is that right?

Post Reply