If I use a Canadian broker as American do I pay taxes twice?

C

cashclay

I am thinking about setting up with QUESTRADE due to the PDT . Im an American residing in Korea. Im just wondering do I just pay CANADIAN taxes or due to the fact Im an American, am I forced to pay both countries taxes? Thank you
 
Not sure how it works from the American side but there is a tax treaty between the 2 countries. As a Canadian any withholding taxes I pay are figured into my tax calculation. I fill out a W8-BEN form that shows my country of residence.

Even better than Questrade is National Bank with zero commissions.
 
A
deaddog said:
Not sure how it works from the American side but there is a tax treaty between the 2 countries. As a Canadian any withholding taxes I pay are figured into my tax calculation. I fill out a W8-BEN form that shows my country of residence.

Even better than Questrade is National Bank with zero commissions.
More...
Why do you write a w8-BEN if you are a Canadian using Questrade as a broker?
 
cashclay said:
A

Why do you write a w8-BEN if you are a Canadian using Questrade as a broker?
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To show the country I'm taxed in.
If I don't have one then any trade has a withholding tax. Not on the profit but on the total trade.
Not sure if it applies today. the last time I had a problem was with IB 15 years ago. Since then I have always made sure I am up to date.
Why Questrade. Not the best platform for day trading.
 
deaddog said:
Not sure how it works from the American side but there is a tax treaty between the 2 countries. As a Canadian any withholding taxes I pay are figured into my tax calculation. I fill out a W8-BEN form that shows my country of residence.

Even better than Questrade is National Bank with zero commissions.
More...
ah ok now i understand,,,
 
deaddog said:
Not sure how it works from the American side but there is a tax treaty between the 2 countries. As a Canadian any withholding taxes I pay are figured into my tax calculation. I fill out a W8-BEN form that shows my country of residence.

Even better than Questrade is National Bank with zero commissions.
More...

National Bank only accepts Canadian residents
 
cashclay said:
I am thinking about setting up with QUESTRADE due to the PDT . Im an American residing in Korea. Im just wondering do I just pay CANADIAN taxes or due to the fact Im an American, am I forced to pay both countries taxes? Thank you
More...

if you are an American living abroad as a US citizen, you must file a US federal tax return and pay US taxes on your worldwide income no matter where you live at that time. (source)

You say because of 'PTD rules', so I'm guessing you will be trading US stocks ? If you are trading US stocks there shouldn't be any Canadian taxes.
 
cashclay said:
I am thinking about setting up with QUESTRADE due to the PDT . Im an American residing in Korea. Im just wondering do I just pay CANADIAN taxes or due to the fact Im an American, am I forced to pay both countries taxes? Thank you
More...

I'm pretty sure they wont even let you open an account since you're not a canadian citizen or physically present...so the taxes is a moot point
 
What makes you think you can simply find a loophole like that?

There is no Canadian broker out there that allows US residents due to PDF laws. Otherwise, an American broker could just open an office at Canada and get a ton of US
customers under PDF rule.

Jeeze! Use google...

https://www.google.com/search?q=questrade+us+resident&sxsrf=AOaemvLFSEXjOinspfgcgv4EIOTTGhje5w:1640294947571&ei=I-rEYbCrIo2StAaV7KigAw&oq=questrade+us+res&gs_lcp=Cgdnd3Mtd2l6EAEYADIFCAAQgAQyBggAEBYQHjoHCAAQRxCwAzoNCC4QxwEQ0QMQsAMQQzoHCAAQsAMQQzoFCAAQkQJKBQg8EgExSgQIQRgASgQIRhgAUO8JWPh1YPaGAWgBcAJ4AIABjAGIAe8DkgEDNC4xmAEAoAEByAEKwAEB&sclient=gws-wiz
 
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He is a US citizen living in Korea, not a US resident. I don't know if they allow Korea but I know they allow some EU countries as long as you get your ID verified at a legal office approved by them.
 
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