Does anyone know - if a capital loss is taken in Canada before changing tax residency to US, do you keep the loss when you cross over? Can you apply it in the US? Does it survive returning back to Canada after a stint as a US tax resident?
Does it matter if it's ABIL vs. capital losses?
Thanks everyone.
changing residency and capital loss carry forwards
Moderator: Mark T Serbinski CA CPA
The loss will be there until you get back. It can't be used in US.
However if you wait to trigger the capital loss until you are in US, it will also be available there. Deemed disposition when you leave Canada will trigger the loss for Cdn purposes without actual sale.
ABIL would probably only be recognized in canada.
Note that deemed disposition does not necessarily apply to taxable cdn property, which may include a small Cdn business.
However if you wait to trigger the capital loss until you are in US, it will also be available there. Deemed disposition when you leave Canada will trigger the loss for Cdn purposes without actual sale.
ABIL would probably only be recognized in canada.
Note that deemed disposition does not necessarily apply to taxable cdn property, which may include a small Cdn business.
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