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Tax Issues for US Citizens Living in Canada

From Ed Arbuckle, Personal Wealth Strategies.

Excerpt:

Generally, income taxes on public company employee stock options arise at the time the option is exercised (employment benefit) and then again at the time the stock is sold (capital gain or loss). The same is generally true both in Canada and the United States but there are some important technical differences that call for advanced tax planning. In Canada, the employment benefit can usually be deferred (in whole or in part) over several years, but not always so in the United States. If this happens, a mismatching of US and Canadian tax could result, increasing total taxes payable

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