Capital gain tax on deemed disposition returning to Canada

This forum deals with all aspects of immigration to Canada, landed immigrant status, work permits, etc.

Moderator: Ron Liberman

Post Reply
lilylam
Posts: 8
Joined: Fri Jun 25, 2021 1:54 am

Capital gain tax on deemed disposition returning to Canada

Post by lilylam »

I am a Canadian non-resident working overseas, bought an investment property during this period. Now I am planning to return to Canada and will change the rental property to Principle residence. There is some price appreciation. I understand there will be a deemed disposition and re-acquisition of the property when I use it as a principal residence. So I will incur capital gain tax liability due to this deemed disposition. Do I need to pay the tax in the year of change of use? I understand there is election 45(3) which allows the tax payer to defer when actual sales occur. I wonder whether it is applicable to non-resident Canadian to elect to defer the tax payment? Thanks.
lilylam
Posts: 8
Joined: Fri Jun 25, 2021 1:54 am

Re: Capital gain tax on deemed disposition returning to Canada

Post by lilylam »

Sorry, I posted to the wrong place and have re-posted to the tax forum.
Post Reply