I am US Citizen and resident. I have stock options from a private Canadian company that have vested and they are in the money. I have been offered the opportunity to do a cashless exercise, where I am granted the number of stocks that, in the current valuation, are of the same total value as my vested stocks at the grant price.
Question: Do I have to file Canadian taxes if I accept this?
How are these treated in US taxes?
Thank you
cashless exercise of stock option
Moderator: Mark T Serbinski CA CPA
Re: cashless exercise of stock option
Exercising these options would be considered Cdn-source wages, requiring a Cdn tax return. The same income would be reported in US, with IRS giving credit for the Cdn taxes owed.
If the amount is less than C$10K, you can exempt these from Cdn taxes.
If the amount is less than C$10K, you can exempt these from Cdn taxes.
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