When I moved to the US last year I have some stocks which had depreciated a lot during the past couple of years. The original price was 20k. Last year when I left it was 4k. I have not informed the TD waterhouse to change my address until now. Now they want me to transfer my account to TD waterhouse USA.
I am hoping they will appreciate in the coming years. Will the IRS give me capital loss or gain based on the original price or the deemed disposition price. What should I watch out for while transferring my TD waterhouse account?
Deemed disposition and capital losses
Moderator: Mark T Serbinski CA CPA
Re: Deemed disposition and capital losses
[quote="kwirky0"]When I moved to the US last year I have some stocks which had depreciated a lot during the past couple of years. The original price was 20k. Last year when I left it was 4k. I have not informed the TD waterhouse to change my address until now. Now they want me to transfer my account to TD waterhouse USA.
I am hoping they will appreciate in the coming years. Will the IRS give me capital loss or gain based on the original price or the deemed disposition price. What should I watch out for while transferring my TD waterhouse account?[/quote]
I am hoping they will appreciate in the coming years. Will the IRS give me capital loss or gain based on the original price or the deemed disposition price. What should I watch out for while transferring my TD waterhouse account?[/quote]
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
... slippery finger.
From a tax point of view, what you've done withe THE ACCOUNTS since you left matters not. In Canada, you had a deemed dispo when you left and that is that.
For IRS, your cost basis is either the normally calculated one (ie. your cost used to determined deemed dispo) or your deemed disposition price.
The choice is yours and your choice can vary for each investment. No doubt you would choose the highest of the 2 for each investement.
There is nothing to 'watch out' for in the transfer. Remember thogh, that you are not limited to using TD in US. ANY US brokerage will accept the transfer. You may prefer another broker.
From a tax point of view, what you've done withe THE ACCOUNTS since you left matters not. In Canada, you had a deemed dispo when you left and that is that.
For IRS, your cost basis is either the normally calculated one (ie. your cost used to determined deemed dispo) or your deemed disposition price.
The choice is yours and your choice can vary for each investment. No doubt you would choose the highest of the 2 for each investement.
There is nothing to 'watch out' for in the transfer. Remember thogh, that you are not limited to using TD in US. ANY US brokerage will accept the transfer. You may prefer another broker.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best