Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jan 3, 2023 5:10:58 PM

How to calculate stock income for new immigrants' first tax filing?

I purchased public stock share 5 years ago the cost was 100k, when I landed Canada 9th of Jul 2022 it's market price was 150k,  and I sold it out 120k 30th Dec 2022, should I declare it as gain 20 or loss -30? 
If it belong to loss, how can I prove its marketing price at 9th Jul 2022 was 150k?

0 1 673
1 Best answer
Moderator
Jan 4, 2023 8:53:53 AM

When you arrive in Canada, the stock you owned was “deemed” to be disposed of at it’s Fair Market Value (FMV), and then instantly rebought at the same price. So, when calculating your gains/losses, you would use the FMV on July 9th as your cost. You can get more info on this Canada Revenue Agency (CRA) webpage: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#PBC

 

If the stock is publicly traded, then you can just look up the price for July 9th on a reputable website. If the stock is private, it may be more difficult for you to find the correct value to show to the CRA. In that case you can contact the CRA at 1-800-959-8281 and ask them what they would consider proof.

1 Replies
Moderator
Jan 4, 2023 8:53:53 AM

When you arrive in Canada, the stock you owned was “deemed” to be disposed of at it’s Fair Market Value (FMV), and then instantly rebought at the same price. So, when calculating your gains/losses, you would use the FMV on July 9th as your cost. You can get more info on this Canada Revenue Agency (CRA) webpage: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html#PBC

 

If the stock is publicly traded, then you can just look up the price for July 9th on a reputable website. If the stock is private, it may be more difficult for you to find the correct value to show to the CRA. In that case you can contact the CRA at 1-800-959-8281 and ask them what they would consider proof.