Can I open a brokerage account if I am not a US citizen?

Capital Gain Taxation for Dual United States/Canadian Citizen?

• I'm both a United States and Canadian Citizen. I'll be moving back to Canada next year permanently. I have all of my savings in a US brokerage (non-retirement) account. I've held my stocks for over a year. I plan on selling off my portfolio all at once a few years down the road. Would I simply pay long-term capital gains tax to the United States? Or do I also have to report this on my Canadian tax return? If that is the case would I be taxed by Canada as well? I'm not sure if Canada has a foreign income exemption, in comparison to the US exemption my cap gains are over that. Any help would be greatly appreciated. Thank you for your time.

• Answer:

  If you are a resident of Canada, you'll end up reporting the gains twice. Once on the Canadian return, once on the US return. Since this represents double taxation, you get goofy credit by using form 1116 (see irs pub 514--you can also claim the tax as a credit if you itemize).