Taxation of Capital Gains

In comparing the taxation of capital gains between Canada and the US , both offer benefits over interest or dividend income. Canada includes 50% of the total gain in taxable income. The US capital gains rate depends on how long you have held the investment and what your marginal tax bracket is. For investments held less than one year, the capital gains are taxed as ordinary income just like dividends or interest. For investments held greater than one year, a flat 15% capital gains rate applies (5% for those in the 15% or lower tax bracket). For those making the transition to the US , capital gains are typically reported in the country of residence only but it depends on the type of investment you are selling. For example, the Revenue Agency reserves the right to tax Canadian real estate and the US taxes it as well.

Income Tax Planning
	Tax Filing Requirements - which tax return do you file? In which country? When?
	Severing Ties With Canada - make sure you are not taxed in both Canada and the US!
	The Canada/US Tax Treaty - learn what it is and how it works.
	Taxation of RRSPs/RRIFs/LIRAs - landmines in waiting.
	Taxation of Interest & Dividends - potential for double tax.
	Taxation of Capital Gains - Which country taxes? Canada/US comparison.
	Taxation of Pensions - company pensions, OAS, CPP/QPP.
	Social Security Number - or Individual Taxpayer Identification Number, why you might need one.
	Taxation of Rental Properties - a paperwork nightmare how to apply.
	Foreign Tax Credit Planning - your ticket to avoiding double taxation.
	Key Differences - Canada/US comparison of tax brackets, deductions, and so on.