Q: Regarding your very quick response to my question yesterday where you stated "Capital gains are treated the same as Canadian gains, but must be converted to C$ for tax purposes." ZSP is a Canadian listed equity in Canadian dollars so I assume that I will not need to make any conversion when taking a capital gain? If I alternatively buy HXS (or HXQ) will capital gains be treated as Canadian only?
Thank you.
Thank you.
5i Research Answer:
Sorry about that, our answer was more in a 'general' form. Yes, because ZSP trades in C$ no conversion will be needed for tax purposes. HXS and other 'total return' funds do not pay distributions, so there would be no withholding taxes or other US tax implications, and any gains/losses would be considered capital gains/losses only on such ETFs.