Investing

How can I move employee stocks from US to Canada

  • Last Updated:
  • Oct 10th, 2019 1:24 pm
[OP]
Newbie
Oct 7, 2019
2 posts

How can I move employee stocks from US to Canada

Hi Everyone,
I am holding employer granted stocks in US broker account. And I moved from India to Canada on PR. Now i want to sell of or move the stocks from US to Canada. Any suggestions on the way I can do it ?
Should I sell the stocks and transfer money to Canadian account and show the amount in taxes here ?
Or I can move the stocks to my TFSA account here.

I am only getting dividend amount from that stock in the broker account. Do I have to pay taxes for that amount in the US every year or the broker takes care of it ? And also do I have to pay taxes in Canada even if i leave stocks in US for now ?

Thanks in advance for your answers.
2 replies
Sr. Member
Jul 1, 2006
725 posts
530 upvotes
talz9383 wrote: Hi Everyone,
I am holding employer granted stocks in US broker account. And I moved from India to Canada on PR. Now i want to sell of or move the stocks from US to Canada. Any suggestions on the way I can do it ?
You can do direct transfers in-kind of shares in a US brokerage to shares in a Canadian brokerage. My employer uses ETrade in the US - and they have a form I have to use to transfer the stock out. I just put in the information for my Canadian margin account, and they shares usually get transferred over in a couple of days. The process involved may vary depending upon how those stocks were granted and managed by the US brokerage. For shares purchased in a normal brokerage account, you would typically fill out a form with the Canadian brokerage who would then file the transfer request to move the shares over. Your best bet would be to call the US broker first to see if there is anything special on their end. They would be able to tell you how to proceed.
Should I sell the stocks and transfer money to Canadian account and show the amount in taxes here ?
You owe taxes in Canada regardless of where you sell them. If you sell them in the US and have the proceeds wire transferred, you are still responsible for calculating the adjust cost base of the shares (in Canadian dollars) and using that to determine any capital gains you may have. If you transfer the shares into a Canadian brokerage and sell them, the same situation applies. As a PR who is resident in Canada you are obligated to declare your worldwide income.
https://www.adjustedcostbase.ca/blog/ca ... nsactions/

If you are earning dividends, you should be including those in your tax filings to the CRA (also converted to Canadian dollars).
Or I can move the stocks to my TFSA account here.
You cannot move them into the TFSA without selling and incurring a capital gain first. So that doesn't really help you to avoid taxes.
I am only getting dividend amount from that stock in the broker account. Do I have to pay taxes for that amount in the US every year or the broker takes care of it ? And also do I have to pay taxes in Canada even if i leave stocks in US for now ?
I think I answered those above - in general, you are going to have to declare and pay taxes on the dividends regardless of which brokerage is holding the stock. It is arguably easier if you received the dividends in a Canadian brokerage account, since they would correctly withhold any foreign withholding taxes and include both the withheld tax amounts, and the dividend amounts on a T3 or T5 (I can never remember which one gets what - but one of those T slips).

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