Serbinski Accounting Firms

I see. So to help facilitate my understanding, here's an example: Let's say the deemed disposition is done and the adjusted cost base is now 500K (Husband was a tax resident and had the property under primary residence prior to deemed disposition). Husband transfer to wife 2 years after this deemed ...

Also, they are thinking about declaring deemed disposition at the point of emigration. The fair market value will be the new adjusted cost base. When the American spouse transfers the real estate property to the Canadian wife, the adjusted cost base will be the stepped-up cost (fair market value at ...

Thanks for the clarification! I'll pass this down.

Thanks for the reply! They are doing this mainly because when the Canadian spouse sells in the future she should be able to apply principle residence exemption since she’ll be a tax resident at the time they sell. But if the American spouse attempts to sell the property in Canada as a non resident a...

Asking for a friend When an American citizen (who's not a Canadian citizen or tax resident) who owns a real estate property in Canada tries to gift his spouse who is a Canadian citizen and tax resident in Canada, would this generate a capital gain for the American spouse (i.e. need to pay tax to the...