Calculate tax from Employee Stock Purchase plan
I'm confused as to how I would calculate capital gains. My understanding:
- The 15% discount is already reported as "income" on my pay-stub twice a year on each of the purchase dates.
- Any other gains excluding the discount is actual capital gains or losses.
How do I factor in the difference in exchange rate of purchase date CAD to USD versus when I convert back from USD to CAD?
How would I calculate the capital gains excluding what is already declared in pay stub?
Using rough numbers:
I contributed $6000 towards ESPP. After converting my sold shares back to $CAD, I deposited $7100 at the bank. So I made $1100. On my pay stub, there's additional benefits income from ESPP reported as $1500.
So that means the government currently thinks I have made $1500 plus any unreported capital gains. But really I made $1100. How do I report the difference? Should I report $400 in capital loss?