I'm a Canadian citizen who received green card and moved to U.S. this year.
I realize that I will have to file a tax return with CRA indicating my departure in 2017.
I don't own any property other than stocks in Canadian brokerage accounts. However, at the date of my departure, some stocks had an unrealized gain while majority had unrealized loss (everything combined, I had an unrealized loss). Therefore I assume I wouldn't have to pay any departure tax when filing 2017 return with CRA. Sounds simple...?
Now, I still have these accounts open in Canada, and let's say I want to sell my holdings. What do I report to CRA and what do I report to IRS?
Scenario 1: the stock originally cost me $100, at the date of departure the price was $60 (unrealized loss of $40), the stock now trades at $110.
Therefore it appreciated by $10 from original cost and by $50 from departure date.
Scenario 2: the stock originally cost me $100, at the date of departure the price was $60 (unrealized loss of $40), the stock now trades at $70.
Therefore, it is still at a loss of $30 from original cost but it's appreciated by $10 from departure date.
Scenario 3: the stock originally cost me $100, at the date of departure price was $60 (unrealized loss of $40), the stock now trades at $30.
Therefore, it's at a loss of $70 vs original cost, and at loss of $30 vs departure date value.
Scenario 4: Subsequent to my departure. I now live in US but I still have my Canadian brokerage accounts open. I decide to buy and sell a stock. Do I have to file with CRA and pay taxes on this trade because I disposed of property in Canada? What do I have to pay though, I'm now officially a non resident. And what about IRS? I'm sure I have to report it to them (since IRS taxes its residents on world wide income) but I'm guessing I can claim a tax break or exemption because I filed with CRA and paid them taxes.
Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
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