It looks like wife owes close to zero tax both in US and Canada on stock sale. Can this be correct and is she able to use deemed acquisition of the stock assets when entering Canada (fy2000)?
o Stocks purchased by wife in 1997 and 1998 when she lived and worked in US (114 CPQ shares on NYSE 114)
o Stocks sold by wife July 2015 ($2243.77 US
o We moved to Canada in Jan 1, 2000 where I believe deemed acquisition applies.
o Still checking but it looks like share price at that time was about the same value as what we sold it for in 2015 but for argument sake let’s say it’s worth a cost basis of $500 Canadian.
o US capital gain is zero. She files 1040 every year and has so far not exceeded 10% and 15% federal income tax brackets. Net result is zero tax owing for stock sale through schedule D with net long-term capital gains from selling investment securities held for more than one year.
o Canadian tax still TBD but very little owing because taxable amount appears to be 50% of cost basis of $500 Canadian.
US Citizen living in Canada close to 0 tax on stock sold?
Moderator: Mark T Serbinski CA CPA
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DonMurphyCanada
- Posts: 73
- Joined: Sat Mar 01, 2014 11:41 pm
I have no idea what the cost basis is, so how can you ask whether the cap gain is zero is right or not? her US TAX might indeed be zero in US, but that has nothing to do with how much the actual gain is.
And to calc her gain in Canada, she will need the C$ value when she arrived (yes, deemed acquisition), and the c$ value when she sold.
And to calc her gain in Canada, she will need the C$ value when she arrived (yes, deemed acquisition), and the c$ value when she sold.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
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DonMurphyCanada
- Posts: 73
- Joined: Sat Mar 01, 2014 11:41 pm
Sorry I did not word questions correctly.
For US taxes, Assuming in the US my wife is still in the 10 or 15% federal tax bracket, I would like to conform zero tax will be contributing to 1040 via Schedule D for the sale of the stock. It just seems to good to be true. Am I missing something here?
For Canadian Taxes, I am trying to confirm that the correct amount of income to claim for the stock sold in the US last year is 50% x (StockSalePrice - ValueOfStockEnteringCanada)
Thanks
Don
For US taxes, Assuming in the US my wife is still in the 10 or 15% federal tax bracket, I would like to conform zero tax will be contributing to 1040 via Schedule D for the sale of the stock. It just seems to good to be true. Am I missing something here?
For Canadian Taxes, I am trying to confirm that the correct amount of income to claim for the stock sold in the US last year is 50% x (StockSalePrice - ValueOfStockEnteringCanada)
Thanks
Don