apiedsec
New Member

Do I need to report US capital gain distributions from mutual funds as foreign income in Canadian tax return?

I received long term capital gain distributions from several mutual funds I own through a US brokerage account. Most of these distributions were paid at the end of the year. Are these considered as foreign income (the same way interest and dividends are considered)? Do I report these (if I need to) in the "Foreign income section" as capital gains?

‎October 31, 2019 2:26 AM
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TurboTaxKim
Level 15

Investors and rental owners

You can enter your Foreign Capital Gains/Losses in two ways in TurboTax.

  • Enter on the "Foreign Income" T-slip page. When you enter them here, you need to enter the currency conversion rate (US Average 2018 = 1.2957) and only need to enter the actual amount of any gains/losses you incurred in the "Foreign capital gains or losses" box.
  • Enter in the Capital Gains Profile. Do so by going to Income > Investments > Capital Gains & Capital Gains Deduction Profile. Then check off the box "Sold stocks, bonds, real estate, etc ", and continue to the Capital Gains page to make your entries. 
    • If you choose to enter this way, you'll need to enter all the details including your ACB (Cost) and Proceeds of Disposition (Sell). You'll also have to manually make the currency conversion.
‎October 31, 2019 2:27 AM
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