Personal Finance

Are the tax free US municipal bonds tax free to Canadians?

  • Last Updated:
  • Dec 14th, 2012 11:55 pm
Tags:
None

Poll: Are the tax free US municipal bonds tax free to Canadians?

  • Total votes: 0. You have voted on this poll.
Newbie
Apr 3, 2007
85 posts
Toronto

Are the tax free US municipal bonds tax free to Canadians?

Are the tax free US municipal bonds tax free to Canadians? Including withholding tax, income tax, capital gain tax etc.
9 replies
Jr. Member
Oct 31, 2006
182 posts
1 upvote
Jay01 wrote: Are the tax free US municipal bonds tax free to Canadians? Including withholding tax, income tax, capital gain tax etc.

Interest income is not subject to US witholding, however you will pay tax on your earnings in Canada.
Deal Addict
Aug 1, 2008
1554 posts
83 upvotes
Ottawa
No...why would you think they would be when the two taxation systems are separate?
Newbie
Apr 3, 2007
85 posts
Toronto
jefguth wrote: Interest income is not subject to US witholding, however you will pay tax on your earnings in Canada.
So no withholding tax even on a unregistered account? That is pretty good.
Banned
Feb 17, 2007
3190 posts
203 upvotes
Then, putting those bonds in registered accounts is much more beneficial.
Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
ya it's actually interesting how americans get tax free interest from some of them
but if we invest in our own government bond... we get no such luxury at all.

afaik no, but you will be taxed by your own country.
"We don't have a soul... We are a soul. We have a body." ~C.S Lewis
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
How do I buy 'em for my SDRSP or SDTFSA?
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Banned
User avatar
Feb 15, 2008
26318 posts
3242 upvotes
Calgary
Thalo wrote: How do I buy 'em for my SDRSP or SDTFSA?

Bug the bond desk of your favourite broker-dealer for some quotes. Don't see why a Canadian would want to own them though, as their prices are usually bid up by US-domiciled entities and investors, such that, the tax preference is essentially arbitraged away.
Member
Mar 24, 2007
430 posts
13 upvotes
jefguth wrote: Interest income is not subject to US witholding.
Anyone can confirm that there is no US withholding tax on these?
Sr. Member
Jul 14, 2009
518 posts
417 upvotes
Toronto
Hahah... why is this a poll?

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)