deemed disposition?

sunnylight · Post by **sunnylight** » Mon Nov 28, 2011 3:39 pm

I am not clear on the deemed non-resident and deeomed disposition, my situation is: Canadian Citizen, left Canada to US for job many years ago with my wife. My life is in US definetaly from the first moving date. I back to Canada only for visiting parents occiationally. I don't have house in US but have a one in Canada and my parents lived there. I use this Canada address as mailing address for bank account which I already reported to IRS. Am I a deemed nonresident of Canada? I didn't file NR74 or indicate my departure date. Need I do it right now?

I gifted this house to my parent years ago but didn't report anything. Was it regarded as deemed dispostion for the capital gain reporting issue in Canada? It was over 1 year after I leaving. Is it a big open ploblem? Or I could wait for the statue of limiation to get everything passed?

Thanks in advance.

nelsona · Post by **nelsona** » Mon Nov 28, 2011 4:33 pm

You are not a deemed non-resident, you are a factual non-resident.
Your problem though is that you did not correctly indicate that you left on your last return in canada.

If this was "many years ago", then the statute of limittations has already passed, so I would not worry about it at this point.

What is your definition of "many"?

nelsona · Post by **nelsona** » Mon Nov 28, 2011 4:34 pm

just to correct my origianl line, when you left you were a demmed non-resident at that time (which is exactly the same as a non-resisnt). Now tha tyou dod not have the house at all, you are a pure non-resident.

sunnylight · Post by **sunnylight** » Mon Nov 28, 2011 5:03 pm

thank u nelsona. As I understand, the Statue of Limitation never runs if the return is not filed. How's Canada rule for it? And how many years is the statue of limitation of Canada tax?

You said no need worry, is it mean to the deemed disposition years ago or everything, including the departure tax return around 10 years ago?

One more question, as for the deemed non-resident, I searched there is a tie-breaker rule. The first order is the residential house. I didn't have house in US, but I have in Canada when I left, do you mean I could skip this first order and apply the other order such as where is the center of economic or personal interests; or where are the most days spent.

many thanks.

JGCA · Post by **JGCA** » Mon Nov 28, 2011 6:37 pm

As was stated now you are a non resident so no ties to Canada at all means no present filing with Canada needed. 10 years ago you left Canada you should have filed a departure tax return your only major asset was a home that you gifted to your Mother it was probably a principle residence that was exepted from tax anyhow, the past is over its been 10 years I would not worry about it its closed now and you do not have any tax reporting left for Canada today so just file in the US for present purposes and do not worry about a filing that you may or may not have been taxed on in Canada 10 yrs ago.