Double taxed on cap gains?
Moderator: Mark T Serbinski CA CPA
Double taxed on cap gains?
Dual citizen, resident Canada. Looking ahead, if I had a one-million dollar cap gain (long term) in Canada and pay roughly 27% tax here, would there be any tax owed in the U.S.?
Re: Double taxed on cap gains?
Assuming none of it is US real estate or resource investments, you should be able to -- either by using the treaty or by simply using foreign tax credits -- to avoid any US tax on this gain.
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
Re: Double taxed on cap gains?
Thx Nelsona, very much appreciate your work here.
Re: Double taxed on cap gains?
Thx Nelsona, very much appreciate your work here.
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jamies_taylor
- Posts: 3
- Joined: Sat Aug 02, 2025 1:12 am
Re: Double taxed on cap gains?
As a U.S. citizen, you must report the $1M gain in the U.S., but the Canadian tax (~27%) can usually be claimed as a foreign tax credit, often reducing or eliminating U.S. tax. Still, you must file and ensure treaty and reporting compliance. I suggest you check with the help of the VAT Calculator https://vatcalc.onl/