stock option - none-resident

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Phil
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Joined: Sat Oct 14, 2006 12:12 am

stock option - none-resident

Post by Phil »

Canadian non-resident, have been on TN at New Jersey for 3 years. Last week my previous canadian employer sent me a mail, basically it says my stock option will expire in one year. It wasn't an issue before, the stock price was so low that I was about to give it up. But the price went up a lot recently, if I exercise it now, I can make about CAD$3000. Just wondering what needs to be done on CAN/US tax. Thanks,
nelsona
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Post by nelsona »

Since exercised stock options are treated as compensation in Canada, the exercise the ammount is less than C$10K, it benefits from treaty exemption for US residents.

You would file a non-resident return, report the income, and then deduct the ammount on line 256.

Any withheld tax would be refunded.

For US, treat like any other stock option.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Post by nelsona »

Thetreaty exemption is in Article XV(2)
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Phil
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Joined: Sat Oct 14, 2006 12:12 am

Post by Phil »

Thanks nelsona,
Phil
Posts: 3
Joined: Sat Oct 14, 2006 12:12 am

Post by Phil »

Hi nelsona,

one more question on ESPP. I still have some stocks purchased though previous Canadian employer's ESPP program. If I sell them, can I still use the same tax exemption for CAN tax. The stock is in US$(a global company), does it make any difference?

Thanks in advance!

Phil
nelsona
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Post by nelsona »

Stocks that you already have are only taxed in US anyways. You should have paid your departure tax on these already.

What we are atlking about here is option that have not yet been exercised.

If this applies to you, then the exercise, which is normally a taxable event in canada, is tax exempt in canada (if less than $10).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

... thats $10K.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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