Ask Terry Questions Sale of a Canadian company stock

Sale of a Canadian company stock

By Terry Savage on April 02, 2024 | Wild Card

Hi Terry, I own shares of stock in a Canadian company that I would like to sell for a long term capital loss. As a US citizen, am I allowed to claim the long term loss on my federal income taxes in order to offset capital gains? Thanks

Terry Says

A lot depends on whether the shares are U.S. registered ADRs (American Depository Receipts) and whether you sell them through an American brokerage firm or a Canadian firm.
By the way, if the shares are worth more than $25,000 you should have been filing a FATCA form annually disclosing your ownership.
Do you have proof of your cost basis when you purchased the shares? that’s another key ingredient in this determination.
Also, there is likely some currency issues, since the Canadian dollar is worth only about 80 cents vs the U.S. dollar at this time.

Bottom line, you need to research these facts and then consult a tax advisor who is an expert in this area.



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