Moving from US to Canada - Tax Question

[toronto2023]

I'm a Canadian who has been working in the US for several years under a green card. I'm planning to move back to Canada in the next several years and have begun researching some of the tax implications. I understand that when I move back and give up my green card, I will be deemed to have acquired my property at the then-FMV and my cost basis will reset. Most of my non-retirement (i.e. taxable) assets are in Vanguard funds (e.g., VTIVX) that I do not believe can be converted to an ETF that is available in Canada.

If I continue to hold these funds until I move back to Canada (rather than sell now and convert to an ETF that is available in Canada, but thereby incurring capital gains), will I be able to take advantage of the deemed acquisition rule by selling the funds after I move? In other words, if I continue hold VTIVX and eventually move to Canada, would I then be able sell to VTIVX once back in Canada with a revised cost basis of the FMV as of the date that I move?

I realize that once I move Vanguard will not let me continue to trade in a Vanguard US account, but as long as I can sell the funds from Canada (and then convert to CAD and wire the money to Canada) I don't see that being a problem. Also, FWIW, I anticipate my total capital gains will be less than the $600,000+ threshold for being subject to the US expatriate tax.

Thanks in advance for your help!

[nelsona]

As a green card holder, you would need to hold on to these assets until AFTER you give up your GC in order to avoid US tax on the gains.

As you say, regardlerss of what you do with the GC, your assets will be deemed acquired the day you arrive in canada -- for CDn tax purposes.

Yes, you will most likely be able to hold on to your US accounts for the time that you need to get rid of your GC, but will not be able to trade in those accounts. You do not have to bring the monies to Canada to avoid US taxation of the gains, you simply have to wait until you are no longer subject to US tax.