Deemed disposition of Cdn property

blairgoates · Post by **blairgoates** » Sat Feb 04, 2012 1:23 am

If a dual citizen residing in Canada transfers real Canadian property that was jointly owned to her Cdn spouse, is the transfer considered a deemed disposition for U.S tax purposes as it is in Canada ?

JGCA · Post by **JGCA** » Sat Feb 04, 2012 10:25 am

It is not a deemed disposition if you actually trf it to spouse, its an actual disposition, and it depends on the value you trf it for in CND between souses you can elect ACB or FMW so yes it s reported in both jurisdictions.

nelsona · Post by **nelsona** » Sun Feb 05, 2012 2:46 pm

It can be considerd a gift to US spouse, but given the tax treatment in canada, actual disposition is better for melding tax credits.