Canadian non-resident in California on L1 since 2012. Was granted non-qualified stock options (US$ stocks traded in the US) in 2007 when working for a Canadian branch of a US company. Reported the stock options to CRA at departure but didn’t pay departure tax. Exercised and sold the options in 2014, with a gain of about $7K.
In addition, I also had ESPP shares purchased in 2010 when I was with the same company. Sold the ESPP shares in 2014 at a loss (a few hundred US$).
How should I report these in my 2014 tax filing, in both US and CA? For example, should the gain/loss be prorated over the years (e.g. 2007 to 2014) to split it between Canadian-source and US-source income/loss? Can I claim foreign tax credit for the tax paid to CRA for the stock option gain?
Thanks in advance!
Canadian non-resident having stock options and ESPP sold
Moderator: Mark T Serbinski CA CPA