Taxes for US-based US citizen owning Canadian partnership security

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Taxes for US-based US citizen owning Canadian partnership security

Post by UncleLongHair »

I am a US citizen based in the US (I like Canada but have only visited :) ) and am interested in buying a certain security that is listed on the TSX but is not listed on a US exchange. It is not a corporation but a partnership and has historically paid a dividend which I believe would be taxable.

I could buy the stock by opening an account denominated in $CDN and buying it on the TSX, or there is a "grey market" tracking stock on the US OTC exchange and I could buy this in $USD. But my question is about taxes.

For dividends/distributions, the company does not provide a Schedule K to US holders of the security but does provide a Canadian T5013 form. But I have never filed taxes in Canada so don't know what I would do with that.

For capital gains,I imagine that either way that I owned the stock, in $CDN or $USD, I would owe capital gains tax when I sell (assuming there is a gain, and considering foreign exchange if $CDN). I am guessing that these taxes would be paid to the IRS similarly to gains on US-based securities. Is that right?
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