TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

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

Forum|Forum|1 year ago
April 21, 2024
1 reply
0 views

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?

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

arunavs_usAuthor

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

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?