Hi

I am planning to land soon from the US. I had received stock options in the US that are partially vested. Anyone know how they'll be taxed if I excercise after landing? Does Canada count the gains as ordinary income, or capital gains? Will I owe US taxes too, since I received the grant in the US?

I am trying to figure out if I should excercise and cash-out the vested portion before landing, or wait.

Any info would be appreciated since this affects my landing timeline.

Thanks,
Ameet

Hi Ameet,

You will be subject to tax in the US on the exercise of the options as they were earned in the US. You will also be subject to tax in Canada if you exercise the options while being a Candian resident. Howerver, you may be entitled to claim foreign tax credit in Canada. This area of taxation is very complex and I would advise that you take the help of a tax expert who deals with the expatriate tax issues and is a both a Canadian and US tax expert.

Thanks