Secondary Sale of Common Stock

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ABS88
Posts: 1
Joined: Thu Sep 09, 2021 2:33 pm

Secondary Sale of Common Stock

Post by ABS88 »

Hi there,

I'd like to seek some guidance and advice re the below scenario:
Scenario:
- working entirely (100%) in Canada as a Canadian citizen (never doing service/trading/business within the USA territory)
- not a dual tax resident (never have tax ID in USA), only a tax resident in Canada
- independent contractor/self-employed (non-employee) in Canada doing services for a US company
- received NSO, stock options by US private startup firm (that is not publicly traded) 3yrs ago
- Sold options (via a stock purchase agreement) as a secondary sale to a private investor (the US company granting the stock is still not publicly traded). With this, the stock options were exercised as well. Exercise price, fmv and sale price are all noted.

Question based on the above assumptions :
1.) As a self employed working in Canada, will the secondary sale of the common stock (from the NSO), be subject for US tax filing specifically Form 8833?

Thank you so much!
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