Received capital gains dividends from a Canadian mutual fund. Do I need pay tax in Canada?
I have some mutual funds in Canada from BMO. I am a non-resident of Canada. I am U.S.A resident. I recevied capital gains dividends.
Do I need to pay capital gains tax in Canada? Or just pay U.S.A.? Thanks.
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Likely not, unless the fund mostly holds Canadian real property (including real estate but also mining rights).
Under the Canada – United States Income Tax Convention, assuming the limitation on benefits provision has been satisfied, a United States resident’s gain from the disposition of property is only taxable in the United States unless the property disposed of was ... a share of a corporation resident in Canada if the value of the corporation’s shares is more than 50% derived from real property situated in Canada
If taxes were withheld, or if you do have to pay Canada since it's a property fund, you should look at filing Form 1116 with your US taxes to get a Foreign Tax Credit.
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