Residency Change Upon RSU Grant And Vest

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Joined: Fri Dec 04, 2020 2:02 pm

Residency Change Upon RSU Grant And Vest

Post by jeremychen0127 »

I was supposed to start my full time job in California this past summer. However, because of the covid, I started it remotely in Canada. Now the company gives me the choice of postponing the RSU grant, because they said I should be aware that if I am a resident of Canada (which I am right now) when my equity is granted and a resident of USA when the RSU is vested, I may be in a situation where both countries will be seeking taxation upon vest.

My understanding is that, suppose I just stay in Canada down the road, then there shouldn't be a problem. However, I do plan to head south to California after 2 years, so if what they said is true, after 2 years I may have some tax-disadvantage if I choose to have RSU granted now.

I tried to research on this topic but I can't really find a clear answer from CRA. What would be the implications from CRA/IRS/California FTB perspective if I have my RSU granted now but then 2 years later my vesting location becomes California?

I am hoping to start receiving RSU as that would probably be less risky and I can probably put them in RRSP to avoid taxation for future growth (I am aware of the implications of RRSP when emigrating 2 year later), but I definitely don't want to be double taxed after I move down to California, so wanted to make sure the implications on this aspect.

I really appreciate for the answer here!!
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