Hello folks,
Thanks for all the amazing advice. Please help me out if you can.
I am an Indian Citizen and used to live and work in the US. I moved to Canada in 2009 and I filed taxes both in the US and Canada for 2009 ( because I had a W2 and worked for the month of January before moving to Canada.) FY 2010, I filed only Canadian taxes and no US Taxes.
I still have an operating brokerage account in the US that I opened in 2007. I did not buy or sell anything in 2009 nor 2010. But did receive dividend income during both the years. I took the 1099-INT for 2010 and paid/filed taxes in Canada. It was around $100 dollars dividend income.
1) Will that be sufficient? Should I also file US taxes although it was $100 dividend and I paid taxes on it in Canada?
I also have another question.
2) In 2011, I sold some of the stocks I owned in the brokerage account. I am getting ready to file taxes for 2011, so should I file the reported gains only in Canada or I need to do separate filing in the US too.
Please note that I am not a Canadian or US Citizen.
Really appreciate your help.
Thanks/Regards
Lab Ooks
Filing US taxes after moving to Canada
Moderator: Mark T Serbinski CA CPA
Yes, you should have filed a 1040NR for the US dividends, as you owed US tax on these at a flat rate.
The broker was supposed to have been told (by you) that you were a Cdn resident) and thus subject to withholding on any dividends. had this been done, you would have nothing to report to US.
That illustrates another reason (along with it being a securities regulation violation) to not maintain these foreign brokerage accounts.
The gains from the stock are only reportable in canada, by treaty, because you are resident in canada, regardless of where the brokerage is located.
Transfer the rest of your stock to canada or sell immediately.
The broker was supposed to have been told (by you) that you were a Cdn resident) and thus subject to withholding on any dividends. had this been done, you would have nothing to report to US.
That illustrates another reason (along with it being a securities regulation violation) to not maintain these foreign brokerage accounts.
The gains from the stock are only reportable in canada, by treaty, because you are resident in canada, regardless of where the brokerage is located.
Transfer the rest of your stock to canada or sell immediately.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you for the reply. I will wind down the brokerage account asap.
While searching on the internet, I came across this regulation by Ontario Securities Commission http://www.osc.gov.on.ca/en/SecuritiesL ... i_shrt.jsp
I was a resident in the US for almost 7 years. Can this be applicable?
While searching on the internet, I came across this regulation by Ontario Securities Commission http://www.osc.gov.on.ca/en/SecuritiesL ... i_shrt.jsp
I was a resident in the US for almost 7 years. Can this be applicable?
It doesn't apply for wo reasons:
For an exemption from this requirement you need to meet 1 of the two following conditiins (as well as others, but at least one of these):
(c)the trading is with or for
(i)an individual ordinarily resident in the United States of America who is temporarily resident in the local jurisdiction and with whom the broker-dealer had a broker-dealer client relationship before the individual became temporarily resident in the local jurisdiction; or
(ii)an individual if the trade is for the individual's tax-advantaged retirement savings plan or with the individual's tax-advantaged retirement savings plan, and....
(i) you are not ordinarily resident in US and are not temporarliy in US
(ii) this is not a tax advantaged paln.
So, for this exemption to apply, you either have to be a US resident temporarlity in Ontario, or if you are living in Ontario, it needs to be a retirement account.
Neithr of these apply to a Cdb resident with a non-sheltered brokerage account.
For an exemption from this requirement you need to meet 1 of the two following conditiins (as well as others, but at least one of these):
(c)the trading is with or for
(i)an individual ordinarily resident in the United States of America who is temporarily resident in the local jurisdiction and with whom the broker-dealer had a broker-dealer client relationship before the individual became temporarily resident in the local jurisdiction; or
(ii)an individual if the trade is for the individual's tax-advantaged retirement savings plan or with the individual's tax-advantaged retirement savings plan, and....
(i) you are not ordinarily resident in US and are not temporarliy in US
(ii) this is not a tax advantaged paln.
So, for this exemption to apply, you either have to be a US resident temporarlity in Ontario, or if you are living in Ontario, it needs to be a retirement account.
Neithr of these apply to a Cdb resident with a non-sheltered brokerage account.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
where it says it is illegal to have a US brokerage account for US non-residents who are Canadian residents? Please refer me to the link, because I do have one and moved to Canada after living in US for 10 years. I don't understand why I should not have an account when I disclose & pay taxes on it to both US/Canada?
The link is above, and I described the 2 condition that allow it. That doc is specific to Ontario, but each provincial agency has a similare one.
And to be precise, itis the BROKER who is being placed in an illegal position by the Cdn resident, by ;ying about their whereabouts.
And to be precise, itis the BROKER who is being placed in an illegal position by the Cdn resident, by ;ying about their whereabouts.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best