Hello,

I'm going to sell some french shares called BSPCE (Share warrants for entrepreneurs in english) - they are a Right to Subscribe or purchase shares at a pre-agreed price - in English referred to as "Equity warrants" or "Stock subscription warrants (SSW)".
I've got them since 2010.

I would like to know if I will have to fill the form 8949 (long-term capital gains) or another one to the IRS or if I will only pay taxes on the gain in France ? The concerned entreprise is a french entreprise.
Same question for California State Taxes.

I'm in the 25% tax bracket, what would be the tax rate on this gain ?

Thanks for your help
Lily

Lily:

First, I assume you are a U.S. citizen AND a resident of California. If so, then, yes, you must report the sale of these warrants on BOTH your U.S. and California state income tax returns.

You will be able to claim a credit for any taxes paid in France using Form 1116 (Foreign Tax Credit) on your federal return, but NOT the California return

If you need professional help, email me at the email address in my profile.

Hi,

Thanks for your answer.
I'm not a US citizen, I'm french, but I'm a US tax resident (H1B visa) and California State resident.

Does it change anything because I'm not a US citizen ?

Thanks again for your help.
Lily

Lily:

No, it makes no difference.

H-1B visa holders are taxed exactly like U.S. citizens. That is what is required by the U.S.-French Tax Treaty.