FTC on RSU capital gain

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maskdoll
Posts: 21
Joined: Sat Aug 17, 2019 12:40 am

FTC on RSU capital gain

Post by maskdoll »

Background: US commuter, residents for both US and Canada

1) just to clarify that there is no cap on FTC on US-based employment income

2) Generally speaking, FTC on foreign capital gain has a 15% cap on US tax paid except it's US-sourced. I wonder if RSU issued by a US company would qualify the exempt of 15% cap? (It's not a publicly traded company, it's an RSU bayback event for a private company)

3) RSU holding will be less than 1 year, so definitely will be taxed as ordinary income and much higher than 15%. In case 15% cap on FTC can't be exempted, can I file 1116 for additional tax paid to CRA? I thought form 1116 is for income earned outside of US.

4) The above thinking also leads to a more general question: every year when I file tax for both US and Canada, can I file 1116 for additional tax paid to CRA on US employment income?

Thanks and appreciate it.
maskdoll
Posts: 21
Joined: Sat Aug 17, 2019 12:40 am

Re: FTC on RSU capital gain

Post by maskdoll »

Forgot to ask another question: if US tax paid can't be used all as FTC, will the extra goes to line 23200 on T1?
maskdoll
Posts: 21
Joined: Sat Aug 17, 2019 12:40 am

Re: FTC on RSU capital gain

Post by maskdoll »

Forgot to ask an important question: if US tax paid can't be used fully as FTC, will extra go to line 23200 in T1?
maskdoll
Posts: 21
Joined: Sat Aug 17, 2019 12:40 am

Re: FTC on RSU capital gain

Post by maskdoll »

Any suggestions?
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