Posted on 04/05/2008 12:11:47 AM PDT by neb52
Alrighty, probably should of asked this earlier, but I figured I would be able to find this info otherwise.
I work in a US division of a Canadian company. I particapated in an Employee Stock purchase plan. I sold the stock in 2007. The problem is the broker is Canadian as well even though the stock is US listed and purchased in US Dollars. I received a T5008 Statement instead of a 1099. I can only get a years worth of detail(bought and sold information) online for one year(ex. April 2007-April 2008). I went round and round with the broker about getting more info like a print out of the summary of all transactions. But they act like they don't understand and keep claiming that the T5008 is all I need and that the IRS accepts this statement.
Of course now that I am filing all the questions being asked are not on the statement. All I have is the sell date, number of shares sold, cost/book value and proceeds of disposition/settlement amount. Any suggestions on how to proceed on this? I have tried to look around the irs.gov web page, but am not able to find anything on T5008 statements. Any help would be greatly appreciated and yes I plan calling the IRS about this Monday to find out.
try the taxact website...
www.taxact.com
try this also
http://www.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4GGLJ_enUS267US267&q=T5008
this might give you the exact answers you need...
http://groups.google.com/group/misc.taxes.moderated/browse_thread/thread/0edb4685f010a762
Thanks, the last one still makes it confusing. One person says it one way then the other one another way. I looked over the CRA sight for non-residents. I can’t believe I can’t find more info on this. My HR department was useless. I would assume a good number of people would be in a similar boat.
Did you make a profit off the sale?
If so how much was it?
The T5008 is in the event you may need to also file in Canada.
You still need to claim the gain to the IRS and the T5008 should be acceptable to the IRS.
The free TaxAct software that you can download should cover it in the questions when you use their software.
Does the T5008 show that Canada taxed you on the sale?
From reading the non-resident on CRA I don’t think I have to file with them since it was capital gains on stock, but would if it was property.
No it does not show the tax, if any, the broker took out.
I am using turbo tax. I just don’t know where to put this. That one Canadian is saying that I would need to fill out a 2555 form for Foreign Earned Income. But that is if I was a resident in Canada and if I earned an income there.
Yes I made some, but not for sure what. Not much. If I am reading this right then the broker was saying that the cost/book value is what I “bought” the stock at and the Proceeds of Disposition/Settlement Amount is what the stock was “sold” for. So the gain would be the PoD - Cost.
But my Mother who does taxes her in the US is saying that on a ESP plan that the employer contribution is taxable income. She would need a break out of what that is and I can’t get that.
I am not talking about much here, four sale transactions for maybe total of $2,057 for the PoD and Cost being $1512.60.
Did you get a direct pay out or was the profit rolled back into the ESP plan?
Direct payout. I was stopping the ESP. There was no discount on purchase of shares, which turbo tax assumes there was for ESP plans.
Thanks for the help. I will just call Uncle Sugar Monday ask where to put this.
If the profit was rolled back into the ESP plan than this would explain why you received the T5008 only. (the broker has to report it to Canada and your get a copy of what they reported to Canada on a T5008 statement on your behalf). If it was rolled back into the ESP plan then it is probably not taxable at this time and this is why you did not get a 1099 on it.
If it was a direct pay out to you in 2007, then you need the 1099 since it was part of a ESP plan in which your employer contributed to. The 1099 would have it all broke down for you on the 1099.
I don’t understand, why would a non US company issue a 1099? and I wonder why they never said anything about this when I communicated with them about this issue.
I know you are getting down to the wire. Demand they send you a 1099 on it that shows your employers contribution, your contribution, the cost of the purchased stock and the profit from the sale of it. (file a extension on your taxes if need be - but send in money when you file the extension by Apr 15 if you think you are going to owe.)
Good luck talking to the IRS people, chances are you will get several different answers from them. (call them more than once with the same question and see if you get 2 or more answers that match up. I am not joking about calling them at least twice on the same question. You will get a different person each time and possibly 2+ different answers. Make sure you get their name and ID numbers)
You might be better off just taking your taxes to a professional instead of relying on what the IRS tells you.
best of luck to you!
Thanks I can’t afford a professional and I don’t think I will. Most likely it will lower my refund from $316 to closer to 0. I should be able get the 1099 in time if they agree, but yes other wise I will do the extension.
Thanks again for the help.
Canadian Brokers can send you a 1099.
Here is how one broker handles it with Americans and Canadians, but they deal with world wide stocks...
http://www.interactivebrokers.com/en/p.php?f=tax&ib_entity=llc
Cleck the tabs at the top of the pages...
OK thanks
I don't understand why Turbo Tax is confusing you. When I have reported ESOP’s in the past, the questions were pretty straight forward. If your broker did not do any withholding, and you did not get a 1099, you might be able to just report it as other income or a stock purchase and sale.
Less than a year.
It was the way turbo tax was wording it and I didn’t have the 1099, so I thinking this had to be reported differently. But if I just need to treat this like a 1099D then I guess I could go ahead and deal with it.
Oh, and for the record, your Broker is not responsible for reporting the cost basis of a stock purchase to you, only the net and gross from the sale. I know many do, but it is a courtesies, not required. That is the reason they are not giving you more than 12 months history. After 12 months, you hold an aggregate position at “x” cost and it is out of their hands.
I am glad you mentioned ESOP. I think that may of threw me off. I was selecting ESPP. ESOP sounds correct though.
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