Reporting requirements on shares owned when becoming a resident of Canada

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flyingmonkey
Posts: 28
Joined: Tue Mar 07, 2017 11:51 am

Reporting requirements on shares owned when becoming a resident of Canada

Post by flyingmonkey »

I became a tax resident of Canada in 2018 and owned US private corporate shares at the time. I sold some of these shares in 2019 and now need to report capital gains. In the 2019 Newcomers to Canada guide, it clearly states that:

"If you owned certain properties (other than taxable Canadian properties) at the time you immigrated to Canada, the CRA considers you to have sold the properties and to have immediately reacquired them at a cost equal to their fair market value (FMV) on the date you became a resident of Canada. This is a deemed disposition."

https://www.canada.ca/en/revenue-agency ... .html#P111

My question is: Are there any reporting requirement to provide proof of the new FMV? A form or election you submit?

Or do you simply report the adjusted FMV on the standard capital gains form and keep your own records in case of audit?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Reporting requirements on shares owned when becoming a resident of Canada

Post by nelsona »

No extra forms. You report the proceeds and determine the gain based on your FMV on arrival, Id they question you can provide further details. THis applies to any investment you held when moving to Canada, other than TCP, which I wouldn't worry about at this point, but you can look up the definition on CRA website.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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