Message Font: Serif | Sans-Serif
No. of Recommendations: 0
BladeXRunnners, I think you are misunderstanding peggyyu's question. If she is a Canadian citizen and a Canadian resident, her capital gains are withheld at a rate that is determined by treaty, not the usual rate we are accustomed to. If you go to IRS Publication 901 and look at Table 1, it appears that that rate is 30%.

Now, it is possible that a credit against that tax might be allowed in Canada. I know that the State of New York allows such a credit if you live in Buffalo, say, and work in Fort Erie and pay taxes in Ontario.

Also, a U.S. stock bought on the Toronto Stock Exchange might not be subject to U.S. capital gains taxes at all. I'm sure that dividends would be taxed at source, because I have some NT and RY whose dividends are taxed in the other direction as they come to me.

I think this question should be asked again on the Canada (TSE,VSE) board.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.