# Stock sale reporting - American in Canada



## irsprisoner (Jan 12, 2016)

I am a dual US / Canadian citizen living in Canada and resident in Canada for tax purposes.
In order to avoid PFIC filing I am considering buying US domiciled/denominated ETFs on the US dollar side of my online brokerage account at a Canadian Bank.

When I sell these ETFs, what is the process for reporting the sale on my Canadian and US tax returns? I assume I will be issued a T3/4/5 and not a 1099B. Do I then just report the income on my Canadian taxes and pay tax on the gain in Canada first, following this with reporting the sale/income on 8949 and Schedule D of my US return and using the tax already paid to Canada to offset my US tax liability? Or do I have to report and pay tax to the US *FIRST* since it is a US domiciled/denominated ETF?

Many thanks in advance for any help with this question!


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## BBCWatcher (Dec 28, 2012)

Does the U.S.-Canada tax treaty provide any guidance on this point? That's probably the first place to look.

Absent guidance there, _ordinarily_ it's income source first (U.S. in this case), other taxing agency second (with a foreign tax credit for the first).


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