# What? If I have more than $60k USD in stock, I have to file a US tax return?



## slacker (Mar 8, 2010)

Is this true?!

http://www.taxtips.ca/calculator/us-estate-tax.htm


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## NorthernRaven (Aug 4, 2010)

Only if you are dead! That's the US estate tax (a one-time thing), not annual income tax returns. Also, unless you have some huge $US dollar holdings, the exemption means you likely don't pay anything.


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## slacker (Mar 8, 2010)

Gah... That's what I thought. But I don't see the word "dead" anywhere on the page.

Phew, good thing I'm not dead (yet).


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## OhGreatGuru (May 24, 2009)

One more reason not to complicate your life by owning $USD securities.


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## cainvest (May 1, 2013)

OhGreatGuru said:


> One more reason not to complicate your life by owning $USD securities.


Actually your life would not get complicated by this ... you executors life on the other hand would.


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## My Own Advisor (Sep 24, 2012)

I recently wrote about this...don't worry unless you have tons of cash:

http://www.myownadvisor.ca/2013/05/death-and-taxes-and-taxes-in-death-u-s-estate-taxes/


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## james4beach (Nov 15, 2012)

A question - what if (my estate after death) should have filed the US return, but doesn't file one. And liquidates the stocks.

What is the USA going to do? They don't have the authority to come over here and force (my estate) to pay tax, right?


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## NorthernRaven (Aug 4, 2010)

james4beach said:


> A question - what if (my estate after death) should have filed the US return, but doesn't file one. And liquidates the stocks.
> 
> What is the USA going to do? They don't have the authority to come over here and force (my estate) to pay tax, right?


You may want to have your executor look at the Tax Treaty Between Canada and the United States, especially "Article XXVI A ASSISTANCE IN COLLECTION". It would appear that there is provision for Revenue Canada to collect taxes owed to the IRS. When this happens, "_...the revenue claim shall be treated by Canada as an amount payable under the Income Tax Act, the collection of which is not subject to any restriction._"

Don't mess with the taxman, even from beyond the grave...


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## OhGreatGuru (May 24, 2009)

cainvest said:


> Actually your life would not get complicated by this ... you executors life on the other hand would.


I agree. If he/she is aware of it he/she may be reluctant to take on the job of executor; or if he/she finds out after the fact he/she may exercise his/her right to hire professional help, at the expense of the estate.


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## praire_guy (Sep 8, 2011)

slacker said:


> Gah... That's what I thought. But I don't see the word "dead" anywhere on the page.
> 
> Phew, good thing I'm not dead (yet).


Right at the bottom, in bright red letters. 

Does anyone else have a problem with this?

I'm not an American citizen (which is how they tax) and have not used any of their services. Why should I have to pay them a dime of tax?

Does Canada tax them the same way?


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## Guban (Jul 5, 2011)

praire_guy said:


> Right at the bottom, in bright red letters.
> 
> Does anyone else have a problem with this?
> 
> ...


It is their laws governing their companies and property. I don't like the idea, but we all have the choice of owning US assets or not. 

Don't think that Canada has similar laws, but the US estate tax seems to be consistent with their idea of gift taxes.


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## james4beach (Nov 15, 2012)

NorthernRaven said:


> You may want to have your executor look at the Tax Treaty Between Canada and the United States, especially "Article XXVI A ASSISTANCE IN COLLECTION". It would appear that there is provision for Revenue Canada to collect taxes owed to the IRS. When this happens, "_...the revenue claim shall be treated by Canada as an amount payable under the Income Tax Act, the collection of which is not subject to any restriction._"


That's just incredible. So Canada actually helps the IRS collect taxes, wow. The more I learn about American taxes, the less I want to own any US assets or stocks.


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## humble_pie (Jun 7, 2009)

james4beach said:


> A question - what if (my estate after death) should have filed the US return, but doesn't file one. And liquidates the stocks.
> 
> What is the USA going to do? They don't have the authority to come over here and force (my estate) to pay tax, right?



somewhere i hazarded a guess that washington would work through the jitney broker system.

all canadian brokers use US jitney broker services. The jitneys are 100% american firms. They'd bow to the IRS.

theoretically speaking, the US jitney side of the broker networks could freeze a deceased canadian's US assets until his estate would produce the declaration of global wealth together with the related estate tax return for non-resident aliens plus any taxes owing.

such a complicated issue! i'm no expert, but i agree with My Own A that the big trouble at present is for big estates only. Smaller trouble could arrive if washington lowers the exempted amount.


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## warp (Sep 4, 2010)

OhGreatGuru said:


> One more reason not to complicate your life by owning $USD securities.



Unless you have huge US stock/real estate holdings, and huge total worldwide assets, this is simply NOT something to worry about.

If you have any concerns , go to Taxtips.ca...they have a calculator there where you can input these 2 numbers and see what your estate taxes might be.

Not buying US stocks because of this unneeded concern, might only hurt you in the end, if you decide against diversifying your portfolio by not investing in US and International stocks. Staying only in Canada is a big mistake.


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## heyjude (May 16, 2009)

My mother (who lived in another country with a US tax treaty) owned a portfolio of stocks in the US, which she put in a trust in my name. For many years she had it set up to DRIP, and didn't pay any US withholding tax during her lifetime. When she died, the funds could not be released to me until I submitted documents showing that all applicable taxes had been paid on her estate. No taxes were payable to the IRS.


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