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I am a Canadian citizen who has been living in the US for the past six years -I am here on a work visa.. I will be returning to live in Canada in two months. I have unrealized gains of over a million dollars on my stock portfolio. I am thinking that I should sell before I return to Canada. Even though I will have to pay US tax on the capital gains, it looks like the rates would be higher in Canada, especially since I will be moving to Quebec. So, I should tax-pay the gain at the lower rate-right?

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Tax Professional Answers

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Michael Atlas, CPA, CA
No, you are not right. You should delay selling until after you return to Canada-that way you will not pay tax in either Canada or the US on the accrued capital gains. That is because of the fact that, for Canadian tax purposes, your cost base of your holdings will be the fair market value at the time of your return.
Leave a Comment 196 weeks ago

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Brian Blair
make sell it in the next tax year when you are not a us tax resident.this is a great example of bumped up cost basis that usually occurs when you die. you will have a small change in cost basis from the Canadian side.
Reply 63 weeks ago
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Brian Blair
make sell it in the next tax year when you are not a us tax resident.this is a great example of bumped up cost basis that usually occurs when you die. you will have a small change in cost basis from the Canadian side.
Reply 63 weeks ago
User Photo
Brian Blair
make sell it in the next tax year when you are not a us tax resident.this is a great example of bumped up cost basis that usually occurs when you die. you will have a small change in cost basis from the Canadian side.
Reply 63 weeks ago
User Photo
Brian Blair
make sell it in the next tax year when you are not a us tax resident.this is a great example of bumped up cost basis that usually occurs when you die. you will have a small change in cost basis from the Canadian side.
Reply 63 weeks ago


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