Electing deemed disposition of rental property in Canada

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Nishant
Posts: 78
Joined: Sun Sep 06, 2009 10:15 am

Electing deemed disposition of rental property in Canada

Post by Nishant »

I have only rental property and RRSP in Canada- Both are exempt from deemed disposition.

CRA emigrant guide mentions that you can elect deemed disposition of real estate.

What are the advantages and disadvantages of filing T2061A is there is an option?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Well, since the guide says you can elect, then obviously there is an option.

There is no advantage in filing this and triggering cap gain unless you have unused cap loss, or in the case of a business, have some cap gains exemption room. Even then, you will always be able to use these in the future.

If you are in a losing position it might ba advantageous to trigger the loos, to write off against current gains, esp. resulting from deemed disposition.

Other than that, since this property remains taxable in Canada, one might as well wait until sale to determine any cap gain.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
rhe707
Posts: 7
Joined: Fri Apr 21, 2023 8:07 pm

Re:

Post by rhe707 »

nelsona wrote:
> Well, since the guide says you can elect, then obviously there is an
> option.
>
> There is no advantage in filing this and triggering cap gain unless you
> have unused cap loss, or in the case of a business, have some cap gains
> exemption room. Even then, you will always be able to use these in the
> future.
>
> If you are in a losing position it might ba advantageous to trigger the
> loos, to write off against current gains, esp. resulting from deemed
> disposition.
>
> Other than that, since this property remains taxable in Canada, one might
> as well wait until sale to determine any cap gain.




@Nelsona - is there anything that you propose doing before any selling happens in the future? Eg. Fair-market evaluation of the property for the year the person became a Canadian non-resident?
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