I have been referred to you by a friend who has been your client for a long time. For sometime I have been looking for a discount stock broker but all the best ones seem to be in the U.S and the will not open any accounts for Canadian residents unless we have a U.S.mailing address. I can easily provide such an address but will I also have to file U.S. tax returns besides Canadian returns? I would greatly value your advice in this matter. ---------------------------------------------------------- david ingram replies: If you have a US return, you will pay exactly the same tax as if the account was in downtown Vancouver or Toronto (Note that I did not say Montreal). You will pay 15% tax on any dividends received in the US by filing form 1040NR and paying the 15% tax under Article X of the US / Canadian Income Tax Convention (treaty) which you can find at http://www.fin.gc.ca/treaties/USA_e.html You are not taxable on any capital gains on publicly traded stocks in the US. Although you can pay 10% tax on interest to the US under article XI of the Treaty, that is rare and in general people only pay tax to Canada on their interest and capital gains. You will have to report the dividend income to Canada as well and can claim credit for the 15% tax paid to the US on line 431 of schedule 1 of your Canadian T1. ---------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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