Leave spouse in CAN to sell residence / child in school

cullen · Post by **cullen** » Mon Mar 17, 2008 9:18 pm

Nelson et al

When a person leaves for the US, establishes tax residency but leaves spouse behind to sell residence and allow child to finsh last year of high school, how is the deemed disposition of the primay residence handled? This person has severed all possible ties and has already bought a home in the US.

1) Value is split between individual and spouse and 1/2 of FMV reported by emigrating spouse
2) Deemed disposition upon emigration date of departing individual at full FMV
3) No deemed disposition till trailing spouse sells residence or leaves for US, whichever is first.
4) Something else

Thanks in advance

nelsona · Post by **nelsona** » Tue Mar 18, 2008 5:35 am

ne's principal residence is not subject to deemed diposition.

cullen · Post by **cullen** » Tue Mar 18, 2008 6:00 am

But the FMV of the principal resiedence must be declared with the T! that declares departure, correct? If so, then what are the mechanics of this with a staggard spousal emigration?

nelsona · Post by **nelsona** » Tue Mar 18, 2008 7:36 am

You were asking about deemed disposition.

You are now asking about the property list. He should list the property and its value when he left.

She will list the property and its value when she leaves, asuming she hasn't sold it by then.

This is not a big deal.

cullen · Post by **cullen** » Tue Mar 18, 2008 7:59 am

Thanks