US OPTIONS - Canadian resident with US trading account

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
My question is: Applicable to both US and Canada
QUESTION: I would like to open a trding account with OptionXpress to trade stocks and Options. Being a Canadian citizen will I be charged any USA taxes as the OptionXpress office is in Chicago.
OptonXpress tells me that I will not be charged any Taxes but I may have holdings according to the Tax treaty.
Could you please explain how it works.
Regards.
---------------------------------------------------------------------------
david ingram replies:
First of all, I think that you are nuts to trade options.
However, if you are a Canadian resident and NOT a US citizen living in Canada, there are no capital gains taxes payable on gains from trading in US Publicly traded stocks to the US government.  There is also no US tax on interest you receive for any money on deposit in the account or any bonds or other indentures you might own.
However, there is a 15% withholding tax on any dividends that the stock pays you when you are holding it.
Now that you know you do not have to pay tax to the US on interest and capital gains, they are both taxable in Canada along with the dividends.
Any profit on your stock must be reported on your Canadian Income tax return and any dividends and interest will be reported on your Canadian Tax return.  In the case of the dividends, you can claim credit for the 15% tax paid to the US by filling in fields 431 and 433 on Schedule 1 of your Canadian Return and the corresponding fields on the provincial tax calculation form. 
=============================================================
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet at
www.600AM.com 
========================================================
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer  from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,  Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts  specialist specialists  consultants taxmen   taxman tax woman planner planning preparer of Alaska,  Alabama,  Arkansas,  Arizona, 
 California,  Colorado, Connecticut,  
Delaware, District of Columbia,  Florida, 
Garland, Georgia,  Hawaii,  Idaho,  Illinois,
  Indiana,  Iowa,  Kansas,  Kentucky, 
 Louisiana,  Maine,  Maryland,  
Massachusetts, Michigan, Minnesota,  
Mississippi,  Missouri,  Montana,  Nebraska,  
Nevada, New Hampshire,  New Jersey, 
New Mexico,New York, North Carolina,  
North Dakota,  Ohio,  Oklahoma,  Oregon. 
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall, 
South Carolina, South Dakota, Tennessee,  
Texas,  Utah, Vermont,  Virginia, 
West Virginia, Wisconsin, Wyoming, 
British Columbia, Alberta, Saskatchewan, 
Manitoba, Ontario, Quebec City, 
New Brunswick, Prince Edward Island, 
Nova Scotia, Newfoundland, Yukon and 
Northwest and Nunavit Territories,  
Mount Vernon, Eumenclaw, Coos Bay 
and Dallas Houston Rockwall Garland 
Texas  Taxman and Tax Guru  and wizzard 
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 
[email protected]
www.centa.com 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. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/7f5b402f/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20040322000956.html

Here's what others have to say about 'US OPTIONS - Canadian resident with US trading account':

Lacey Anger Management Pregnancy from Lacey Anger Management Pregnancy
... management - The answer is lacey anger management pregnancy, to just experience the calmness and serenity. You always getting defensive about something? you know can diffuse the sense of ver... US OPTIONS - Canadian resident with US trading account... [read more]
Tracked on Thursday, June 09 2016 @ 08:11 AM PDT

0 comments