US ETF tax implications

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asked Jan 18, 2018 04:43 AM by
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Jin, your model portfolios include US ETF's, such as IVAL, Qval etc. Are you aware of any tax implications to holding US 'property', such as being required to complete certain US tax forms, and then, presumably pay taxes to the US? Am am referring to Canadian residents using Canadian brokerages. Many thanks!

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answered Jan 26, 2018 11:46 AM by
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Also, if you have over $100,000 worth of foreign stock in a tax-able account you need to declare it on Form T1135, Foreign Income Verification Statement when doing your taxes. But that's just a declaration to the CRA.

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answered Jan 19, 2018 12:37 PM by
Jin Won Choi gravatar image Administrator

I'm not a tax expert, so I can't speak for all situations. But in general, the only tax implication you have to worry about with respect to owning US ETFs is with regards to dividends. US dividends are generally taxed at a higher rate than Canadian dividends. I've never had to file any US forms, however - you generally report the amount of US dividends paid to CRA.

Hope that helps, Jin

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Asked: Jan 18, 2018 04:43 AM

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Last updated: Jan 19 '18

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