This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
Moderator: Mark T Serbinski CA CPA
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My Canadian broker sent me a "Section 302 certification of treatment of merger Payment" to fill in. Problem is I can't find any simple examples of how to complete the form and definitions of what X, Y and Z are. As background, on Dec 28.2018 Dell acquired DVMT stock through a merger. I had elected to get 100% cash for the 100 DVMT shares I owned, thinking this would be classed as a stock sale. Instead, I got 64 shares of DELL (W on the form?) and some US cash. The broker treated the cash as an American dividend and withheld US tax. If I fill out form 302 is it possible the cash could be shown to not be a dividend? I am a Canadian citizen and never make enough income to be able to claim a foreign tax credit on Canadian tax form. I don't file US taxes. I do have capital losses to claim. Any suggestions how this dividend versus capital gain should be handled? An example of how X, Y and Z are calculated would be very helpful. I appreciate any advice.