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I'm about to pull the trigger and get some Canadian stock BBI:CA, but first I want to know if I need to pay special taxes, or If I'll be double taxed by this capital gains.

  • I'm a US alien, got the residence for 2 years and now I'm about to get the permanent one.
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I will answer my own question. After calling my broker, they explained me this:

  • For dividends earnings, Canada government withholds 15%. That could be used as credit for US taxes
  • For stock, you're only taxed once by the IRA. It works just like a US stock.
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    To add a reference to this, the reason for the difference in tax treatment lies in the tax treaty between the US and Canada. This is a complex area and a quick answer online is insufficient for full support, without knowing the OP's full situation. However in short, between the US & Canada, capital gains [excluding 'real property', like land) are considered income in the country where the individual is a resident [not the country where the stocks exist]. So Canada does not generally have the right to tax a US resident's capital gains income. – Grade 'Eh' Bacon Jul 4 '17 at 13:41

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