Can we (canadians) get back the capital gain (in US$) IRA kept after selling US

[PhenPhen]

stocks in NYSE? I got some capital gain from selling company allocated stock options. But as soon as I sold it, they kept 50% of the capital gain. I am wondering if I (a canadian) can get back (100% or part of) the gain...??

Any idea??

Thanks
I'm Sorry, I didn't make myself clear.. yes, I am a Canadian used to work for a US company, and sold some US stock options (and got some $ from it). After the transaction, E-trade (on behalf of US government) withheld 50% of the gain from that Txn... Now my question was (I thought IRA is the tax collectino agency in US, but I must be wrong here), whether I can get that 50% (or part of it) back since I am not a US citizen, and no way to be charge to 50% tax rate anyway...

Hope this clarfy the question a little bit..

Thanks
PhenPhen

[hobbit]

If you mean IRS (internal revenue service). not IRA(individual retirement account I think you would report the transaction on your Canadian return and show as well the tax withheld. So no you would not get the funds back but would receive credit for it on your return.

If you did mean IRA you should contact a tax accountant with experience in American transactions.

[v b]

Starting over with new info.

Were these ISOs or NSOs? (There are subtle differences between the two.)

If you exercised the grant and took the money, you do not have any capital gains, even if you held the grant for 10 years. Your capital gain clock doesn't start until you exercise AND hold the stock for another year. If you exercise and sold on the same day, you have "ordinary" income for the difference between the FMV and the grant price.

This ordinary income is reported on the wage line of the 1040NR and is taxed at ordinary tax rates. If too much money was withheld, you will get some of it refunded.

Since this is US income and you will be double taxed, check your Canadian return for information on getting a foreign tax credit.