Investing

Is it worth to transfer stock from US brokerage to Canadian one?

  • Last Updated:
  • Feb 9th, 2019 3:18 pm
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes

Is it worth to transfer stock from US brokerage to Canadian one?

My wife holds 1 stock in US brokerage (UBS) ...Current market value is about 63K USD. This is from company where my wife worked before. This is cash account, so every year we file foreign income....We don't do any transactions except collecting dividends.
In Canada we have 6 registered accounts with CIBC IE, but no cash account.
In you opinion, Is it worth to transfer this stock from US brokerage to Canadian one?
What are pros and cons from such transfer?
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11 replies
Member
Mar 15, 2011
436 posts
116 upvotes
Toronto
I'm facing a similar situation, except l'm still with my company.

I'd consider:
- extra fees payable now that her ex employer is no longer assumed to be subsidizing transaction fees
- how fast you plan to sell off the stock, can you deal with the tax issues of selling?
- what are charges of moving to your broker, would they cover some costs or grant you some free transactions
- how much of your total portfolio is in this one company and what would you replace it with?
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes
Majority of this stock (INTC) is from RSU/ESPP. It's 9% from our total equity portfolio and 5% from All portfolio.
We don't pay any fees to manage account.
I don't want to sell anything now because don't want to deal with CPG and other taxation stuff, I don't understand it and hate it!
We may sell when my wife retires and gonna have much smaller income, it can happen not earlier than 5 years from now and maybe much longer.
For now, every 3 years I fill out W8-BEN and file dividends as foreign income as per Form 1042-S . We are not doing (and not intended to do) any trading with this account . Every 2-3 quarters I cash out dividends (online) and get check in US$ (it's free).
Most likely CIBC IE would cover (at least partially) transfer, but I have no idea how much UBS will charge transfer-out fee and if I can do in-kind transfer at all.
Didn't get 2nd part of your last question.... if we sell, I will invest proceeds into TFSA or RRSP or just HISA or just spend on travelling :)
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Deal Addict
Jan 20, 2016
2027 posts
1002 upvotes
Houston, TX
gibor365365 wrote:
Jan 28th, 2019 12:31 am
Majority of this stock (INTC) is from RSU/ESPP. It's 9% from our total equity portfolio and 5% from All portfolio.
We don't pay any fees to manage account.
I don't want to sell anything now because don't want to deal with CPG and other taxation stuff, I don't understand it and hate it!
We may sell when my wife retires and gonna have much smaller income, it can happen not earlier than 5 years from now and maybe much longer.
For now, every 3 years I fill out W8-BEN and file dividends as foreign income as per Form 1042-S . We are not doing (and not intended to do) any trading with this account . Every 2-3 quarters I cash out dividends (online) and get check in US$ (it's free).
Most likely CIBC IE would cover (at least partially) transfer, but I have no idea how much UBS will charge transfer-out fee and if I can do in-kind transfer at all.
Didn't get 2nd part of your last question.... if we sell, I will invest proceeds into TFSA or RRSP or just HISA or just spend on travelling :)
I was told TD (Ameritrade in US) and IB can do in-kind transaction from USA to Canada. But probably you'd have to pay the CG tax in USA (and get tax credits in Canada for that).
So it could look like UBS->IB(US)->IB(CAN) but it's taxation the most unknown for me in that case...
Maybe do nothing as you're doing would be a safer bet lol
Make the face great again
Deal Addict
Feb 21, 2004
1378 posts
171 upvotes
Montreal
OP,
Personally I tend to prefer to move my stocks from my Schwab US Brokerage (RSUs & ESPP also) into Questrade for many reasons:
  • A Canadian firm will understand our tax laws and issue relevant required documents when tax season comes versus the US firm which couldn’t care less about our security and fiscal laws
  • Should I have an emergency and want to liquidate the stock and require the funds, Questrade will be able to EFT them into my CDN account much faster and with less hassle than an international wire transfer or worse USD check (its from the US so it would be a check :)
  • I dont trust how the IRS runs security on our personal data
  • Since I already hold TFSA & RRSP @ Questrade, this allowed me to consolidate all my assets in one place and reach higher tier for better service (platinum)
Questrade will be able to do an in-kind (you transfer the stock as is into your CDN brokerage without selling) at no cost. You just need to fill a form from your CDN broker with you US Account info and send it in to them and they take care of everything. As long as you dont sell, you wont trigger any capital gains
Member
Jul 1, 2006
397 posts
186 upvotes
I was going to write what @HoTiCE_ said - just do an in-kind transfer. There will be no tax to pay since nothing was sold and you can bring it all under one roof in your Canadian account.

I have RSU's that vest into E-Trade in the US and the day after they show up I just do an in-kind transfer to my margin account at CIBC. Not a big deal - in some ways its almost easier to move stocks between the countries than it is to move cash... LOL. It is basically no different than moving in-kind between Canadian brokerages.
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes
sckor wrote:
Feb 8th, 2019 8:01 am
I was going to write what @HoTiCE_ said - just do an in-kind transfer. There will be no tax to pay since nothing was sold and you can bring it all under one roof in your Canadian account.

I have RSU's that vest into E-Trade in the US and the day after they show up I just do an in-kind transfer to my margin account at CIBC. Not a big deal - in some ways its almost easier to move stocks between the countries than it is to move cash... LOL. It is basically no different than moving in-kind between Canadian brokerages.
If we move stocks into CIBC IE, I'm not sure how we should deal with capital gain if we later decide to sell stock. Currently , in UBS, I should be able to find ACB, but after moving to CIBC IE, UBS account will be closed and we wouldn't be able to access it

Also, I'm curious if capital gain calculation for RSU and ESPP is the same like for regular stock purchase?
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Member
Jul 1, 2006
397 posts
186 upvotes
gibor365365 wrote:
Feb 8th, 2019 1:51 pm
If we move stocks into CIBC IE, I'm not sure how we should deal with capital gain if we later decide to sell stock. Currently , in UBS, I should be able to find ACB, but after moving to CIBC IE, UBS account will be closed and we wouldn't be able to access it
Just get the ACB before you close the account. Presumably you have statements you can download with any of the necessary dates and transactions... and its not like the ACB is going to change unless you buy more stock.
Deal Addict
Feb 21, 2004
1378 posts
171 upvotes
Montreal
gibor365365 wrote:
Feb 8th, 2019 1:51 pm
If we move stocks into CIBC IE, I'm not sure how we should deal with capital gain if we later decide to sell stock. Currently , in UBS, I should be able to find ACB, but after moving to CIBC IE, UBS account will be closed and we wouldn't be able to access it

Also, I'm curious if capital gain calculation for RSU and ESPP is the same like for regular stock purchase?
Capital gain calculations are identical regardless of the vehicle in which you acquired or receive stock grants. The main difference will be the ACB portion.

ESPP are usually purchased at a discount. At time of purchase, per Canadian laws, you immediately pay income taxes at your marginal rate on that discount you got (vis-a-vis fair market value of that stock on the day of attribution). The ACB calculation should be done on the FMV on attribution day (not on the lower purchased price)

RSUs are like straight up purchases so you calculate ACB based on that FMV amount on day of vest.
Newbie
Oct 20, 2018
12 posts
sckor wrote:
Feb 8th, 2019 8:01 am
I was going to write what @HoTiCE_ said - just do an in-kind transfer. There will be no tax to pay since nothing was sold and you can bring it all under one roof in your Canadian account.

I have RSU's that vest into E-Trade in the US and the day after they show up I just do an in-kind transfer to my margin account at CIBC. Not a big deal - in some ways its almost easier to move stocks between the countries than it is to move cash... LOL. It is basically no different than moving in-kind between Canadian brokerages.
Does E-trade charge you any fees to do this?
[OP]
Penalty Box
Apr 27, 2015
1330 posts
255 upvotes
ESPP are usually purchased at a discount. At time of purchase, per Canadian laws, you immediately pay income taxes at your marginal rate on that discount you got (vis-a-vis fair market value of that stock on the day of attribution). The ACB calculation should be done on the FMV on attribution day (not on the lower purchased price)
Sorry, I don't get it .... I checked brokerage account and the only info I have, date of ESPP purchase, price and number of shares.
8/17/2001 49 24.298
2/16/2001 53 29.299
8/18/2000 32 40.788
How can I know FMV?
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Member
Jul 1, 2006
397 posts
186 upvotes
mathishard wrote:
Feb 9th, 2019 1:27 pm
Does E-trade charge you any fees to do this?
No they don't. Interestingly I actually send the request as a transfer out directly to E-Trade and they send the shares directly into my account with CIBC. Where for most transfers you typically have to pull from the other brokerage... in this case it is a push. It works well - usually only takes them a couple of days.

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