Canadian Taxes on Sale of US Stocks

How are sale of stocks taxed in Canada. Lets say I got 10,000$ worth of stock in US and I moved to Canada and I sold them in Canada, How would I be taxed if the stocks were held for a) more than one year b) less than an year…

Any help or pointers would be appreciated. Thanks.

Canada doesn’t have the concept of short term and long term capital gains.

It’s just capital gains, so whether you hold for a year or more is irrelevant. 50% of the gains are tax free and the other 50% is taxed at whatever slab you fall in as ordinary income.

The one key point to note is that as a PR your cost basis in determining the gains is the price of the stock when you moved to Canada and not the price that you bought them at.

As for taxation in the USA, no taxes are due if you’re a non resident (except if you’re a US citizen or GC holder, in which case you also need to report and pay taxes to IRS).


Thank you @panditji

Thats something I learnt. So just to clarify , do you mean if I got some RSUs vested while I was working in US, and their value was 100$ when I moved to Canada as PR. Now if I sell them at 150$ , I only pay tax on 25 $ (50% of 100-50).

What about the tax on increase from 0 to 100 ? I am surely missing something here.

@usa2can i think we need to pay tax on increase from 0 to 100 in USA but not sure… @panditji can you confirm?

No, you’re not missing anything.

That’s the US Tax law. US has an expatriation tax for it’s citizens and Green Card holders but not for Foreign Aliens on Non Immigrant visas.


Thanks @panditji . Confirmed this with a Cross border Tax guy and it is indeed true.
This might hold big benefits for many, and should be advertised as a strong benefit of moving north.


@panditji, @usa2can can you share the contact info of cross border tax specialists that can help with tax implications of ISOs and RSUs while moving from US to Canada

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