Capital Gains

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moss.whitney
Posts: 6
Joined: Mon Sep 21, 2009 1:48 pm

Capital Gains

Post by moss.whitney »

If I am a dual citizen with assets in both Canada and the US, how are Capital Gains taxed?



Thanks
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nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Capital gains are considered sourced in the country you live in, except for Real estate and natural resources. The location of the broker is not important.

So, if you live in US, you pay US cap gains on everything, plus Cdn tax on Cdn real estate, with US giving you a credit for the Cdn tax paid.

If you live in Canada, you pay US on everything, you pay Cdn tax on everything. You get crdiy on your Cdn return for any US tax you paid on US real estate, and you get credit on your US return for Cdn tax you paid on all other cap gains, either as passive income, or as re-sourced by treaty income. It gets a little complicated, but generally you end up paying Cdn tax rate
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
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