Calgarian Canadian Receiving Stock Options from AT&T a

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David,
Thanks so much for your help.
A client, Cdn citizen and resident (no US ties) receives stock options
because he works for AT&T.  (he never lived in the US)   The options expire
worthless.  So they give him 500 shares, and do not assess him a taxable
benefit.   This happens a few times and now  he retires and owns $60,000 in
this stock held at a brokerage company in the US.  If he calls them
tomorrow to sell it, what are the tax implications?  What is the "ACB"?
Is he right that he has paid no tax for any benefit yet?  (He still owns
5400 Options in AT&T with a strike price at $29US.)
Thanks for your help!
GXXXXXXXXXXXXXX
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david ingram replies:
AT&T would not issue the stock without an accounting. Your client would have received an accounting for US purposes with each set of shares received.
It would likely have been a 3 page printout and likely labeled 1099 substitute.
It was up to your client to take these figures and add them to his Canadian return as a taxable benefit.  
If any were received in the last three years, he should amend those returns.  His ACB will then be the value of all the shares when he received them.
I am sending this to the list in case someone knows anything to the contrary and will pass it on if such a situation arises
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
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North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 
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Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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