Investing in US stocks as a Canadian?

Question

If i were to invest in US stocks, do taxes work the same?

For example, if i invest in a Canadian stock at 20 and it goes to 40. I would pay taxes on 1/2 the capital gains. If a US stock i purchase goes from 20 to 40 would my taxes be the same or would they be greater? Do i have to pay the US Government any taxes for any gains on their stocks?

Answer 1

u would pay it to Canada bc ur a Canadian citizen

Answer 2

There is no tax payable to the American government on this because you are a resident of Canada. It is taxable on your Canadian return. The only thing to be mindful of is that you need to report the proceeds and ACB in Canadian funds. As part of your records, keep track of the exchange rate any time that you purchase or sell foreign stocks.

Answer 3

The gain and tax from your US stock sale would be the same as the Cdn stock sale.  You dont need to pay any US taxes on stock gains to the US govt.