Canada tax credit for US sourced investment income

[Nishant]

While filing 1040 this year, I have US sourced investment sale profit which happens to be while I was resident of Canada.

Tax will be paid to US on this income in 1040 . I need to show this on Canada return as well. How do I show it on Canada return?

Thanks

[nelsona]

Yes, since you are chhosing to file a full year 1040, you will report the income in both countries. Any tax credit would be on your US return. The capital gains, even for US company stock, is considered Cdn-sourced while you were living in canada. You report it in canada just like any other cap gain you would make at any other time you were resident.

[Nishant]

Nelsona- Thanks.

Just to understand- Do I NOT show this investment income under 1099-B on 1040 instead show it on 1116?

Thanks

[nelsona]

It would be on BOTH. All income that you classify as foreign, to use on 1116, must also have been declared as income on your 1040 soewhere. Although you do not have US receipt for it, you need to get it on the 1040, either as interst, dividend, or capital gain.

[Nishant]

I need to clarify. I have receipt because it was invested in US institution but just because my family was in Canada that time prior to move, I am showing it on 1116.

You have clarified that it needs to be on 1099-B as well as 1116. Thanks

[nelsona]

You do not prepare a 1099-B, You enter the income on the lines/schedules it is supposed to go on directly