I understand that when you move to Canada from the US, your Canadian cost basis is re-set on the day you become a Cdn resident. I also understand that when you sever ties with Canada, you do a deemed disposition. However, I seem to recall that you have a certain window (<5 years?) from the time you move to Canada where you can leave without doing a deemed disposition on investments you owned BEFORE moving to Canada. Is this true?
Thanks.
Deemed Disposition for Short-Term Cdn Resident
Moderator: Mark T Serbinski CA CPA
this is true.
There is one proviso, however, that you must not have been resident in Canada for 60 months of the past 10 years to qualify.
So, if you returned to canada after spending 4 years in US, stayed a year and then left again, you would not qualify for this exemption from deemed disposition, as you would have spent more than 5 years in the past 10 in Canada.
There is one proviso, however, that you must not have been resident in Canada for 60 months of the past 10 years to qualify.
So, if you returned to canada after spending 4 years in US, stayed a year and then left again, you would not qualify for this exemption from deemed disposition, as you would have spent more than 5 years in the past 10 in Canada.
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
In the case of a mutual fund that automatically reinvests distributions, I guess I would need to do a deemed distribution of re-investments that were made during my (<5 year) residency in Canada. While the mutual fund is a pre-existing investment, I suppose CRA would consider the re-invested portion to be new investments (and therefore subject to the deemed distribution), right?
Thank you!
Thank you!