What is the current rate of paying capital gains on an investment home?

Investment in U.S. Securities and paying taxes in Canada?

• If one's employed in Canada (Canadian Citizen) but invests in U.S. securities, such as stocks, how are the gains (Capital and Dividend) treated for tax purposes? Of course, the funds are traded in U.S. Dollars and the gains are also in U.S. Dollars; would the U.S. gains be considered differently as U.S.Income at a different Marginal Tax rate or will they be taxed at the same Marginal rate as the Canadian Dollar Income?

• Answer:

  Once again, Allan is wrong. While there is US witholding on dividends paid, there is none on capital gain. This is the rule for ALL US Dollar income: you convert the US Dollars to Canadian Dollars at the rate in effect on the day of buy, sale, or dividends paid. Then you report it, on the appropriate lines of Schedules 3 or 8. You are then taxed on your TOTAL world income, at one tax rate. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/121/frgn-eng.html http://www.cra-arc.gc.ca/E/pub/gm/g300-7-10/g300-7-10-e.html