How are Canadian Bond Funds Taxed?

When you sell them, is it considered capital gains? Do you pay interest income when they increase in value?

bullet b: Sorry if I was unclear, but I'm asking about Canadian Bond Funds (if international bond funds are taxed differently I guess I'd be interested in the rules about those as well) within Canada (nothing to do with US).

Thanks for your answer!

If you have a bond fund, you will likely receive regular distributions of interest income. That is taxed as interest income. If the bond fund increases or decreases in value, and you sell it your shares, capital gains provisions kick in: you either include 1/2 of the gain in income, as a capital gain, or you have a capital loss (1/2 of the loss) that you can use to decrease other capital gains.

i think canada taxes you and then america taxes you.

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　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

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