Hello!
I work remotely for a US company. As part of the benefits, I am awarded a chunk of stocks of that company, those stocks are publicly available for trading. We use Charles Schwab as the broker.
Every 3 months some of those stocks "vest" and a part of those vesting stocks are sold to pay for taxes in the US, therefore I am already paying taxes in the US.
After that, I am able to sell those stocks for cash and send the cash over to my bank account in Canada
Charles Schwab sent me a end-of-the-year report, and it turns out there's some losses in there, since the stock price fell between when it was granted for me and when I sold it.
But I didn't loose any money since I got the stocks as part of my compensation
My question is: do I need to declare this cash that I'm transferring over to my Canadian bank account as part of my taxes this year? Since I already paid taxes in the US for those.
Or, in other words, do I need to use the Charles Schwab end-of-year report? Since it just lists my transactions
Also, the amount I got in the form of stocks is already described in box 38 of my T4
This is my first time doing my own taxes, and another question that I have is: will the simplest version of turbo tax work for what I'm trying to do here?
Thanks!
Hi @Espiriki,
In terms of reporting you would need to report all stock transactions (gain or loss). Note that USD transactions should be converted to CAD before including on the "Capital Gains and Capital Gains Deduction Profile" section within TurboTax.
You will need to determine an Adjusted Cost Base (ACB) for these shares. This will be the cost to you to acquire minus the values which have already been tax deducted by your employer (you don't pay tax twice due to tax treaty between Canada and the US). Your broker may already account for this in the transaction statement they provide. Note that even if there are losses it is beneficial to report as you can carry these forward to use in a future year against any other capital gains.
If you are still uncertain you can also upgrade to our TurboTax Live Assist & Review product where an expert will review your details entered and ensure it's correct prior to filing.