The Raymond James Advantage – Comprehensive Tax Reporting for U.S. Persons Residing in Canada

Written by Carson Hamill CIM®, CRPC®, Associate Portfolio Manager and Assistant Branch Manager & Dean Moro BComm, CIM®, Associate Portfolio Manager

Living abroad comes with its share of complexities, especially when it involves financial matters and tax obligations. For U.S. persons residing in Canada, navigating the intricate web of tax reporting can be quite daunting. However, Raymond James in Canada, along with their subsidiary Raymond James (USA), have taken steps to streamline the process by providing the essential U.S. tax receipts for individuals falling under the U.S. tax purview.

Tax Receipts provided by Raymond James for U.S. Persons

Raymond James caters to U.S. Persons living in Canada by furnishing essential U.S. tax receipts. These documents include:

• Form 1099-B: This form is crucial as it reports proceeds and costs related to security dispositions, showcasing the capital gains as short-term or long-term.
• Form 1099-DIV: It details dividend income, trust income, and income from non-U.S. partnerships, offering a comprehensive view of various income streams.
• Form 1099-INT: Reports interest income, aiding in the comprehensive disclosure of income sources.
• Form 1099-MISC: Covers miscellaneous other income, ensuring a detailed overview of different income categories.

IRS Requirements and U.S. Persons

The Internal Revenue Service mandates financial institutions like Raymond James to issue U.S. tax receipts to U.S. non-exempt recipients, encompassing U.S. trusts, U.S. citizens, U.S. residents, and U.S. green card holders. These receipts are essential for compliance with U.S. tax laws and are issued alongside Canadian tax receipts to ensure a comprehensive view of an individual's income and financial activities.

Clarifying Common Queries

To address common concerns, we provide clarity on some frequently asked questions:

Question: Does Raymond James Canada show short- and long-term capital gains in their U.S. reporting

Answer: Yes, Raymond James issues the essential 1099-B receipts that delineate capital gains, specifying them as short-term or long-term, offering transparency in investment-related gains.

Question: Does Raymond James Canada include Canadian income in their U.S. 1099 reporting?

Answer: Absolutely, Raymond James ensures comprehensive reporting by including Canadian income in the 1099 reporting. This practice provides a holistic view of income, bridging the gap between U.S. and Canadian financial aspects.

Additionally, Raymond James manages various Canadian income reporting tasks, supplying 1099 slips for TFSA and RESP accounts.

Conclusion

For U.S. Persons residing in Canada, Raymond James Ltd. plays a crucial role in simplifying the often-complex landscape of U.S. tax reporting. By providing these essential U.S. tax receipts and including Canadian income in their reporting, Raymond James ensures a comprehensive and compliant approach to financial disclosure for individuals balancing obligations in both the U.S. and Canada.

As always, given the nuances of tax laws and individual circumstances, it's essential one consults with tax advisors well-versed in cross-border tax matters to ensure accurate reporting and compliance with both U.S. and Canadian tax regulations.

Next Steps

If you’re planning on moving to Canada and need assistance with your investments, estate planning, and portfolio management, please call or email us at Snowbirds Wealth Management as we specialize in cross-border financial planning and wealth management. We work closely with experienced cross-border lawyers and accountants to ensure you have a team behind you.

About Snowbirds Wealth Management

Gerry Scott is a portfolio manager and founder of Snowbirds Wealth Management, an advisory firm focussed on the cross-border market. Together with Dean Moro and Carson Hamill, associate financial advisors and assistant branch manager with Snowbirds Wealth Management, they provide investment solutions for Americans living in Canada, and Canadians residing in the United States. Licensed in both Canada and the U.S., they provide tailored investment solutions to minimize the tax burden when moving assets across borders.

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