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.
When I moved to the US I elected to defer tax payment on assets deemed disposed at departure hoping they'd appreciate. Boy I was wrong...I still hold the assets which have lost most of their value such that selling them won't even pay the deemed taxes. Recently one of the mutual funds I had was wound up and they moved my money into it's replacement triggering a sale & substantive loss that I need to report. What can I do with CCRA to amend my deferral and how would I report these losses. Help...
There are only a very few assets (like Canadian private company shares) on which a post departure loss can be used to reduce your departure gain. Marketable securities do not qualify.
The only way to get around deemed disposition on ordinary stocks that you hold when leaving is to defer the tax (like you did), but then hold on to them for a full 10 years while in US and then sell them.
I believe that the treaty allows at this point that the canada loses its right to tax the transaction, including the deemed disposition.
This does not apply to you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Ah so some possible relief...I pay tax on the mutual fund wound up and hold the rest which are stock for ~2 more years then sell in the tenth year (if I understood that correctly).
