Stock Cost basis quesiton

sanipuga · Post by **sanipuga** » Mon Apr 06, 2015 3:52 pm

I'm a canadian citizen living in US. I sold a couple of stock in 2014. Those stocks were bought back in my canadian taxable account in 2007. I moved to US in late 2008. My shares were transferred in 2009 to US brokerage account because some transfer technical issue with the canadian brokerage account. My queston is if the cost basis of the stocks the price of stock I bought back in 2007 converted in US $ with the exchange rate at that time? or the cost basis is the price of the stock back when I moved to US in 2008 so I declare the cap gain or loss post arrival, with the exchange rate at that time?

nelsona · Post by **nelsona** » Mon Apr 06, 2015 4:10 pm

First off, did you correctly pay youyr deemed departure tax in 2008? That deemed departure value would be what you use for cost basis, not your purchase price. The cost would be in USD at that time. The re is a rev proc thatallows you to use that value, otherwise you pay US cap gains based on the original price, ignoring the deemed disposition.