simple cap gains question

readtheform · Post by **readtheform** » Mon Jan 10, 2011 10:51 pm

Simple question, haven't been able to find the answer in this forum, apologies if I overlooked it.

I am US citizen. I earned capital gains last year on my US-held accounts and this is the first time I've had to deal with this situation. Do I claim both short-term and long-term cap gains on Cdn form (as well as on 1040 as usual)? And then I deduct Cdn taxes on cap gains from US tax liability? Or something different?

Thank you!

nelsona · Post by **nelsona** » Tue Jan 11, 2011 7:25 am

In canada, you gains are gains, period. You report all gains and losses on your Cdn return, regardless of account.

On your 1040, you split them into short and long-term, again, regardless of account.

For tax credit, since these are all considered Cdn-sourced (the mere fact that the account is in US does not matter), you will report all gains, and then use the tax from your Cdn return towrds getting credit.

readtheform · Post by **readtheform** » Tue Jan 11, 2011 11:26 am

That's easy. They are Cdn-sourced because I earned them while I am resident of Canada?

nelsona · Post by **nelsona** » Tue Jan 11, 2011 12:00 pm

Yes. Only interest and dividends from US companies, and cap gain from real estate and resource property is considered US-sdourced.

Dales · Post by **Dales** » Wed Jan 12, 2011 5:01 am

Both the short term and long term are to be included . But there is an exception if you have included the long term investment before , You can skip at for now .