Company stock options

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rdneu56
Posts: 12
Joined: Thu Feb 24, 2005 9:04 pm

Company stock options

Post by rdneu56 »

I am a US Citizen working in Canada for a privately help Canadian company. I will likely receive stock options from my company this year. As the company is privately held there is no market for its shares, which may change if it goes public or is acquired by another company. Do I have to report the stock options to the IRS when I receive them? What IRS publications or regulations address my situation?
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Options are pretty tricky, and from what I've heard, the differing treatment between US and Canada usually removes a big chunk of their attractiveness.

That they are likely 'non-statuatory' options, probaly complicates things further.

I'll point you to:

http://www.irs.gov/taxtopics/tc427.html
and the guide that it lists

but keep in mind that some of the reporting choices open to you from an IRS standpoint may not be suitable given that the choices for Cdn tax may not jive with all of these.

You might need pro advice on what is the best course to take to minimize your overall (not just US, not just Cdn) tax hit.



<i>nelsona non grata... and non pro</i>
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