simple cap gains question

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readtheform
Posts: 23
Joined: Tue Mar 09, 2010 4:42 pm

simple cap gains question

Post by readtheform »

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
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
readtheform
Posts: 23
Joined: Tue Mar 09, 2010 4:42 pm

Post by readtheform »

That's easy. They are Cdn-sourced because I earned them while I am resident of Canada?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes. Only interest and dividends from US companies, and cap gain from real estate and resource property is considered US-sdourced.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Dales
Posts: 3
Joined: Tue Jan 11, 2011 6:06 am
Location: new york

Post by Dales »

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 .
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