Deferring Deemed Disposition when emigrating

tom2510 · Post by **tom2510** » Tue Mar 08, 2011 11:22 pm

Hi, when electing to defer the deemed disposition, how is the tax owing calculated and paid when actually sold? More specifically, suppose final tax year owing is $52000 but $32000 is related to the deemed dispostion (capital gain $200,000x50% @ 32% bracket for the departing year). Actual amount paid for departing year is the difference of $20000. If the capital property is disposed over the next 2 years, is the pre-determined tax amount of $32000 payable or is it recalculated in the year of the actual sale? Is this reported on a non-resident tax return in the year of actual disposition? This could actually result in less than 32% bracket? Please help clarify. Thanks for your help.

nelsona · Post by **nelsona** » Tue Mar 08, 2011 11:34 pm

The deemed disposition calculated on your departure does not change. The only thing that is deferred is the payment, under some circumstances.

tom2510 · Post by **tom2510** » Mon Mar 21, 2011 1:58 pm

Since cash security has to be posted for emigrant deferred disposition tax amounts, I plan to simply sell all CDN brokerage stock assets into cash and not defer the disposition on emigration. If I have a TD bank account on both sides of the border (TD Canada Trust and TD Bank US), can I simply electronically transfer cash from Canada to the US accounts, and then write a cheque from the US bank account to start a new brokerage account in the US? Are there other requirments either by CRA or IRS for moving large amounts of money on emigration from Canada to the US? Thanks in advance for your help.