Gifting stock from US to Canada

[jaszczur@gmail.com]

I'm a US permanent resident, Canadian citizen. If I have a stock with a large amount of capital gain, what are the tax implications of gifting it to a family member who is a Canadian resident and citizen?

My understanding is that I'll fall under the US annual gift tax exemption, or for larger gifts the lifetime gift exemption, so I'll need to file a form but have no tax implications from the US. On the other end Canada doesn't have a gift tax and they deem it a disposition and will step up the cost basis to the value at the time the gift is given. Because of the step up, the recipient can immediately sell it without any real gain or taxes (ignoring minor movements in value).

Will this deemed disposition be a taxable event for me? I ask because I'm not a Canadian resident and of course Canada taxes based on residency. Would I be required to file a tax return in Canada despite not being a resident?

[nelsona]

As a US resident, the gains on stocks -- even Cdn ones -- are not subject to Cdn taxation, so giving them to a Cdn resident, incurs no Cdn tax to them or you. Their cost basis becomes the market price on the day you gift them. Nothing for you to report in Canada.