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I have some mutual funds in Canada from BMO. I am a non-resident of Canada. I am U.S.A resident. I recevied capital gains dividends.

Do I need to pay capital gains tax in Canada? Or just pay U.S.A.? Thanks.

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  • For clarity, BMO is Bank of Montreal? Your money is in an account in Canada in Canadian dollars, or you bought a BMO mutual fund with a US account?
    – quid
    Mar 21, 2018 at 18:15
  • Or possibly a BMO ETF on an exchange?
    – brian
    Mar 21, 2018 at 18:38
  • I have a account in bank of Canada.
    – alex
    Mar 22, 2018 at 20:23

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Likely not, unless the fund mostly holds Canadian real property (including real estate but also mining rights).

Per http://www.millerthomson.com/en/blog/carrying-on-business-in-canada-for-non/a-non-resident-disposing-of-taxable-canadian/:

Under the Canada – United States Income Tax Convention, assuming the limitation on benefits provision has been satisfied, a United States resident’s gain from the disposition of property is only taxable in the United States unless the property disposed of was ... a share of a corporation resident in Canada if the value of the corporation’s shares is more than 50% derived from real property situated in Canada

If taxes were withheld, or if you do have to pay Canada since it's a property fund, you should look at filing Form 1116 with your US taxes to get a Foreign Tax Credit.

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