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Selling stocks (ESPP) before moving to Canada

skarme312

Star Member
Aug 2, 2017
148
14
I had some company stocks that I sold before coming to Canada (received dividends too). My CPA did basic calculations to adjust my foreign income and interest/dividends for the days I was a resident in Canada for tax purposes and reported the same on the tax return. He however did not include anything for the gain I received from stocks. Note that the stocks were sold when I was a resident in the states. I did pay tax for the gain on my US returns. I am noticing some sloppy mistakes by my CPA and its quite frustrating. However, I was not sure if the gain has to be reported if stocks were sold prior to coming to Canada.
 
 

jclarke99

Hero Member
May 10, 2020
227
73
If you sold the stock before you moved to Canada, you don't need to report the sale (or gains) to Canada.
For any securities you have when you move to Canada, you need to note the value of each security (and convert to Canadian $ in your accounting) on the date you officially moved to Canada. Those will be your new cost bases when you sell and need to report capital gains (or losses) to Canada.
 
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Reactions: WantToKnowMore
May 11, 2021
12
1
If you sold the stock before you moved to Canada, you don't need to report the sale (or gains) to Canada.
For any securities you have when you move to Canada, you need to note the value of each security (and convert to Canadian $ in your accounting) on the date you officially moved to Canada. Those will be your new cost bases when you sell and need to report capital gains (or losses) to Canada.
Hi jclarke99,

Do you know would the securities(previously purchased ESPP) before moving to Canada consider as ESPP stocks such that i need to prepare and find out six years ago Stock price on offering date and Stock price on purchase date at the moment i sell them?

Thanks for your time
 

jclarke99

Hero Member
May 10, 2020
227
73
I'm not a CPA, so you would be wise to verify, but I suspect that your cost basis is the actual (or implied) cost to you (not necessarily the market stock price) in Canadian dollars at the time you moved to Canada. If you're like most people and conduct the ESPP purchase and sale at the same time, then that is your Sale price (for computing your gain). This assumes that you're conducting the transaction after moving to Canada, and you're converting to Canadian $.
 

meghanlaning

Newbie
May 12, 2022
1
0
Hi, I would like to know what is stopping you from just going and figuring out why they made such gross mistakes in your documents? Please do not pay the tax a second time; it is just pointless. I often read articles on Penny Stocks, and it becomes clearer to me how money works in the state and how to properly deal with stocks. I advise you also to read such literature more often to know what to do in such cases as yours. If you want to talk to me, write in private messages, and I will try to help you.