Who reports capital gains if a stock is owned jointly? + MORE Apr 8th

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Q. I am a Canadian as well as an American citizen. I have to file income tax returns in both countries. I understand the TFSA needs to be reported. If I decide to renounce my American citizenship, what happens to the TFSA that would be different from other investments? I heard they are not tax-free. If you could shed some light on this, that would be appreciated.
– Jake Penner
A. First, you are correct, Jake, the IRS does not honour the tax-free status of Tax-Free Savings Accounts (TFSA) and any income earned inside the account is reportable and taxable on your U.S. tax return, each year.
Related: Coming clean to the CRA
In addition, the TFSA may be considered a foreign trust by the IRS. If it is a trust, you will also be required to file Forms 3520-A & 3520 each year to report the account. If you own mutual funds or exchange-traded funds (ETFs) inside of any account other than a retirement account, you will need to sort out whether you are subject to Passive Foreign Investment Company (PFIC) rules annual reporting…

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The discussion on dividends versus buybacks has been circulated over many years. Both are forms of distributing profits to shareholders, but they differ in many ways. A dividend provides a (usually) regular cash payment to investors while a share buyback is when a company purchases its own shares.
The buyback reduces the number of shares outstanding in the company, usually increases earnings per share (EPS) and increases share price. According to popular financial literature, in a world without taxes or transactions costs, a shareholder should be indifferent about whether receiving a dividend or capital gain in the form of a share buyback.
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However, in the real world, there seems to be many other aspects to consider for investors when choosing between dividend paying stocks or companies that repurchase shares. For example, certain industries are more prone to paying dividends rather than issuing share buybacks and vice-versa.
As well, stock repurchase programs are much more uncertain than dividend paying programs; where the latter may be more attractive to investors relying on an income stream from their investments…

Q.  My question is regarding stock capital gains, specifically in a joint account with my wife at TD Waterhouse. We had a capital gain of $30,000 this year in our non-registered account. At 50% each, our capital gain for tax purposes is $15,000. Do we each have to report a gain of $7,500? Or, does just one of us report the total gain? Or is there another option?
– Thanks, Eldon M.
A. Hi Eldon.  Two things to know in reporting this transaction: first, how capital gains are taxed.  This can be complicated, depending on the type of investment you have, but broadly speaking, when your Proceeds of Disposition are more than the Adjusted Cost Base minus your outlays and expenses, the result may be a capital gain. Half of that gain is taxable; that is, it is added to your other income for the year, and subject to your marginal tax rate.
Related: How to report capital gains tax owed on gifted shares
Capital gains can be offset by capital losses incurred in the current year, or by capital losses incurred in prior years…