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

Hey. I had a question about capital gains and the way they work. Note : I am neither a US resident or US citizen.

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. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains.html. 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?

1592

Moderator

Apr 21, 2024 10:06:55 AM

For assistance with U.S. taxes and U.S. versions of TurboTax, please visit the website for TurboTax USA.

New Member

Apr 25, 2024 10:51:07 AM

I asked this question on the US forum. They asked me to post here. https://ttlc.intuit.com/community/taxes/discussion/re-i-had-a-question-about-the-way-deemed-aquisition-works-for-capital-gains/01/3351419#M1234725

Moderator

Apr 25, 2024 11:14:29 AM

Yes, if you are a resident of Canada, you would need to report the sale of the shares on your Canadian income tax return.

But, we only deal with Canadian taxes here, so we can't tell you if you need to pay any taxes to the US or what amounts. Perhaps contact the IRS?

Why sign in to the Community?

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