Canadian Citizen Living in Canada and own LLC in California. I receive K1 from LLC. LLC will have a capital gain from sale of business investment. I assume I will be paying capital gain taxes in US and California. How is capital gain taxed in Canada and are there provisions to avoid double taxation?
Thanks
US Capital Gain and taxation in Canada
Moderator: Mark T Serbinski CA CPA
Re: US Capital Gain and taxation in Canada
Since this is business income, it will be taxed in US (if it were normal cap gains from investments, it would not).
Then it is also taxed in Canada, with Canada giving foreign tax credit for any US tax calculated on your US /Cal returns.
Then it is also taxed in Canada, with Canada giving foreign tax credit for any US tax calculated on your US /Cal returns.
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