CAN -> US move: sell/repurchase or transfer stocks?

andrew_m · Post by **andrew_m** » Wed Apr 27, 2011 2:24 am

Hi,

I'm a Canadian citizen who has just moved to the US. I've been told that I should close my Canadian brokerage account and open one in the US to avoid possible "residential ties" in the eyes of the CRA.

With respect to brokerage accounts, is it preferable to:
a) sell shares out of the Canadian account and repurchase them using a US broker; or
b) figure out some way to get the shares transferred directly from the Canadian to the US broker

From what I understand, there's no real difference in the tax that will be paid in Canada, due to the deemed disposition mechanism on emigration. I'm inclined to just sell everything and repurchase in the US, since it's less costly & difficult than doing a transfer.

Is there any reason why I shouldn't sell & repurchase?

Thanks!

nelsona · Post by **nelsona** » Wed Apr 27, 2011 9:42 am

The reason to close your brokerage account has NOTHING to do with residential ties. Quite simply Cdn brokers are not allowed to deal with US residents. But merely having the account will not jeopardize your Cdn tax non-residency.

If you are intending to simply "re-buy" the same shares, why not simply transfer them, avoiding TWO commissions?

This is done all the time. The brokers can "figure" this out, especially the US broker who wants your business.

Note that Cdn mutual funds will have to be sold.

ExpatAmerican · Post by **ExpatAmerican** » Wed Apr 27, 2011 4:53 pm

You needn't sell any of the stock positions. Darrell Thompson at Macquarie Private Wealth Corp. in Toronto is licensed in 32 states. Their Canadian/US trading platform can easily handle any Canadian/US stocks, bonds, exchange-traded funds you would need to transfer in, as a US resident. He can be emailed at darrell.thompson@macquarie.com.

nelsona · Post by **nelsona** » Wed Apr 27, 2011 10:56 pm

Thaks Darrell... I mean Expat.