US Capital Gain and taxation in Canada

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rcdn11
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Joined: Thu May 06, 2021 8:02 am

US Capital Gain and taxation in Canada

Post by rcdn11 »

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

Re: US Capital Gain and taxation in Canada

Post by nelsona »

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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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