Deemed disposition reporting on CRA departure return

[tigerjk]

Hi,
I've done some digging around the forum and the CRA website but still need some help wrapping my head around this.

CRA departure guide mentions forms T2061A, T1161 for deemed disposition of property.

I know that since my principal residence was changed to an income-producing one, it is to be "deemed disposed" at the FMV and re-acquired right after for the same amount.
Any capital gains I incurred as a result of this "deemed disposition" is exempt by the PRE. My questions are..

1. Do I need to declare this capital gain? On which form?
2. Do I need to file T2061A? Due to the change of use of my property, doesn't that automatically make it a deemed disposition?
3. Do I need to include this property on form T1161?
4. I did not get an appraisal done for my property so I'm basing the FMV on the assessment mentioned in my property tax invoice. Is this a fair way to determine the value of my property?
5. If I sell my property in the future, the capital gain/loss is to be calculated based on this FMV price (ie. at time of deemed disposition), right?

Thank you in advance.

[nelsona]

Incorrect assumption. Cdn real estate of any kind is automatically exempt from deemed disposition, regardless of purpose, since it will forever be taxable by Canada.

So, by the instructions on these forms, you should not report your (former) home as a deemed disposition.

You can always get a "past" appraisal done, this would be a good idea.

After that you need not worry about any cap gains (in US or Canada) until you sell. There will be 2 ways to determine the gains, and you will be able to choose the lower. one is based on departure value, the other is a proportion of years spent as PR.

[nelsona]

Sorry, just to clarify, your Cdn property should be LISTED on T1161, but it is not subject to deemed disposition

T2061A is not needed for former principle residences until you sell. At that time you will have the choice.

[tigerjk]

As always, thanks for the help.