Deemed disposition of investment accounts

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acsd12ka4
Posts: 1
Joined: Thu Aug 08, 2024 9:27 am

Deemed disposition of investment accounts

Post by acsd12ka4 »

I'm a cross-border commuter likely leaving Canada permanently first half of 2025.
I have 401k with US employer, traditional IRA, individual investment account with Fidelity (~25k net liquidity with ~5k capital gains), no real estate, no Roth IRA, relatively small RRSP (~1k) but plenty of room left for future contributions.
Considering that I'll be subject to deemed disposition of investment accounts (non-retirement) as I depart Canada, what would be the best strategy to prepare for the move? is it wise to liquidate the investments this year itself and reinvest sometime next year after leaving Canada?
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Deemed disposition of investment accounts

Post by nelsona »

No need to do anything really. Just make sure that you leave yourself no capital losses for future use in Canada as they will be useless until/unless you return to Canada. You will need to sell any mutual funds you hold as they can't be transferred. Stocks can be moved to US broker once you move.
Since you have a small RRSP, consider closing once you move. Simplify. Get rid of TFSA as well.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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