Quebec & Deemed Disposition

[cnytax]

Has anyone had any experience dealing with the MRQ in regards to Deemed Disposition and Election to Defer Taxes?

My wife and I moved to the US in 2007 and filed our final Federal and Quebec tax returns in 2008

CRA was no problem. We did the Deemed Disposition and also elected to defer the taxes payable. The forms (T1243, etc.) and procedure were relatively clear.

MRQ was different. At the time, I searched carefully on the MRQ website and couldn't find the analogous forms and procedure. I called them up and after numerous discussions, I was instructed to send MRQ the federal forms!

It was almost as if they had no procedures in place to deal with Deemed Disposition.

Recently my wife sold 1 of the stock in the deemed disposition here in the U.S. This was reported to CRA. They sent us a letter stating taxes owed and we paid up.

MRQ was different. At first MRQ insisted that we file a Quebec return and report the sale. This didn't seem right since: 1) we had already done the disposition and 2) we are residents of the U.S., not Quebec.

After lengthy phone calls, this was also sorted out and we sent Quebec a check for the amount owing.

Once again, it looks like Deemed Disposition is unknown at the MRQ.

Anybody else have this experience?

[nelsona]

Its not that it is unknown, it is just that they follow the CRA on this.

Glad you were able to straighten it out.