Deferred Tax Payment of Income from Deemed Disposition

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Deferred Tax Payment of Income from Deemed Disposition

Post by nelsona »

After the ten year mark, you respond to their request as I outlined earlier. Please view responses made to others as if they were to you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
cnytax
Posts: 51
Joined: Sat Jul 16, 2011 11:28 am

Re: Deferred Tax Payment of Income from Deemed Disposition

Post by cnytax »

Hi,

It's a long time ago but if memory serves, my wife was asked to provide a Letter of Guarantee to Revenu Quebec. I believe she deposited the money in a GIC which was kept in an account at TD Canada Trust. The idea was that when she returned to Quebec, she would get the money back.
bluesky
Posts: 31
Joined: Sun Mar 29, 2020 11:01 am

Re: Deferred Tax Payment of Income from Deemed Disposition

Post by bluesky »

Anyone else have experience with this process and what CRA asks for in terms of "adequate security"?
Has anyone also indicated shares in a CCPC as part of deemed disposition? Can payable cap gains tax be deferred as well by putting up 'adequate security'?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Deferred Tax Payment of Income from Deemed Disposition

Post by nelsona »

Only the tax arising from deemed disposition can be deferred. Typically, the shares of the investments that have been deemed sold are sufficient security.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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