Sale of stock after moving from US to Canada

[gnham]

Hi,

I have some stock that I acquired while in the US, some by purchasing directly and some through ESPP. My stocks were all winners so I didn't sell them before moving. To be clear, I was previously a US resident and am now a Canadian resident.

After moving to Canada, I filed a W8-BEN on my account, and then sold some of my stocks. Unfortunately, the brokerage did not correctly apply the W8, and deducted a 30% withholding tax from the sale of the stock. I believe I am entitled to a refund of this withholding from the IRS; how would I go about indicating this on my tax return?

I have since sorted out my status with my brokerage (I hope!), and I am planning to sell my remaining stocks, which I acquired through ESPP. Do I need to file anything with the IRS upon the sale of these stocks, and will I owe the IRS any taxes on them?

Finally, when I file my Canadian income taxes, I will pay capital gains taxes on the difference between the value of the stocks on the day I entered Canada (deemed acquisition) and the proceeds from selling the stocks. Are these the only taxes I should expect to pay on the stocks?

Thanks!

[nelsona]

1040NR, the NCI schedule, 0% tax rate by treaty.

Your conclusion on the Cdn tax is correct.

[DonMurphyCanada]

Wouldn't the question of citizenship of the OP be important in this case?

How is the sale of US stock reported on a US return for a USC living in Canada?

[nelsona]

The person is not a US citizen, since they filed a w8BEn, which is for non-citizens.

if you have a question, don't attach it to a 2 year-old thread.