Tax of Sale of Shares under Employee Stock Purchase Plan (ESPP)
I'm working for a company that has ESPP, so they will keep part of my salary to purchase their stock at a 15% discount. All is handled via E*Trade and in USD. Note that I'm working in Canada and my company also has an office in Canada. Here are the details:
Grant Date: 2021, November 1
Purchase Date: 2022, April 29
Number of Shares purchased: 65
Purchase Date FMV: 51.92 USD
Discount 15% => actual Purchase Price: 44.13 USD
Acquisition Cost: 65 * 44.13 = 2,868.58 USD
My first question is:
(1) I guess the discount is treated as a taxable benefit? which is (51.92 * 65) - 2,868.58 = 506.35 USD => this amount is already included in the T4 slip and in CAD currency by my employer?
Now I also sold all of these shares:
Here is where I'm confused:
(2) It seems like E*Trade calculates the Adjusted Cost Basis to be both the Acquisition Cost (2,868.58 USD) and the Discount (506.35 USD) so it would be 3,374.93 USD So the Gain/Lost would be the Total Proceed minus this ACB = 3,054.33 - 3,374.93 = -320.49 USD Do I need to report this as Capital Lost then (and in CAD) then?
(3) Since I sold the shares shortly after I got it, I guess this is considered a short-term capital gain/loss?
February 25, 2023
5:30 PM
