Hi,

I have a quick question about tax returns.

I bought shares using my company's employee share purchase plan (ESPP). According to the plan, employee get a 15% discount on company share prices. As I understand from my salary slips, that discount was considered as an income and income tax was deducted for this income as well. In the end, I sold those shares at a loss (even after 15% discount).

i.e I bought a share at 8.5 which was priced in market at 10. Paid the taxes for income of 1.5 dollar per share and sold the shares at 7 dollars.

Where should I declare this on my tax return and it is possible to get a refund?

Thanks

If you can provide us with the 'T Slip' and the 'boxes that they filled in that slip' with all of the dollar figures that they wrote in them, we will get an idea as to how much your employer deducted as taxes and paid to the Revenue Canada.

Based on the slip and the dollar paid, we can tell you how to go about it.

But, generally all the Capital Gains and Losses are filled in Schedule 3. in your return. Your employer would report the instantaneous gain and the appropriate amount as Capital Gain and taken the Taxes owed on it. The slip will show the amounts. Now your purchase cost becomes $10. The loss in your case is 10-7 = 3/ share. i.e. that is, if you sold the shares prior to December 31, 2007. Now you can adjust the gains you made with a portion of your loss. The rest gets carried and can be written off whenever you make the gains in another transaction, in the future.
To capture this, in short to collect the money back from Revenue Canada, you will have to file an amendment to your return, if you already submitted your 2007 return. ( I hope you are asking about this for this years', which is 2007, if not, then the adjustment will be for the year that you have the sales slip for. See the year of sale.)

When you sold for a loss or gain, through a broker or through the company, you can also include the cost of disposing them or the commission charged by the broker.

Hope this makes it clear for you.

Freddie.

Deleted. Irrelevant post.

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Indo-Canadian