Question

I had a question about the way deemed aquisition works for capital gains

Forum|Forum|2 years ago
April 21, 2024
1 reply
0 views

Hey. I had a question about capital gains and the way they work. Note : I am neither a US resident or US citizen (which means I am not subject to exit taxes)

Lets say that I got 10 amazon shares vested at 150 dollars and I became a resident of Canada at a date at which

the share price (FMV) was 180 dollars. Lets say that now I sell my shares at 200 dollars. Now I want to understand my taxation liability here. As per deemed acquisition laws in Canada, I am only required to pay Canada taxes for the 10 * (200 - 180) part. However for the rest of the amount (i.e. 10 * (180 - 150)) part, I would have to pay taxes to the US correct? I cannot find anything in the IRS website that suggests I do. However, I presume I would have to pay taxes for it somewhere right?

Not A Product Question

J

JulieS

Please follow this link for the Canadian Community forum.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

A

arunavs_usAuthor

I asked this question on the canadian forum. They asked me to post here. https://turbotax.community.intuit.ca/community/filing/discussion/re-i-had-a-question-about-the-way-deemed-aquisition-works-for-capital-gains/01/3346614#M8686

DMarkM1

According to the IRS here, "if your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States."

You would not have a US tax reporting requirement.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"