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departure tax
February 6, 2021
10:55 am
Forum Posts: 23
Member Since:
December 21, 2018
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Only items when I departed that can follow "deeped dispostion" is sole prop business inventory ~(17k). 12/31/2019 will be my departure date (last day as a resident of Canada).

Heres what I will do:

1) I didn't select my departure date on my 2019 return so I will have to amend this and enter 12/31/2019.

2) This deemed dispostion is if I sold it to my self. I will include $17k in my T2125 gross revenue, and in my COGS (zeros out).

3) I will collect GST on this sale and include this figure in Part 3A of my T2125

4) I will amend my 2019 GST return to include this deemed dispostion revenue, the GST collected and ITC (zeros out).

5) I will file T2061a (Report Deemed Dispostion). I will enter my $17k inventory as an adjusted cost basis of $17k, and a FMV of $17. Note: Argument here is much of the inventory is outdated and unsellable (this is true). T2061a says "Complete Schedule 3 of your tax return", but since there is no gain / loss I suppose this is not done?

6) Ive read about "defensive" returns where you file for the years you are a non-resident to solidify this fact, even if you have no income. Is this just an ordinary T1? It doesnt appear possible to enter a non-canadian address on the return.

Thoughts on the above? Also a note on (5). This is incredibly difficult to determine or prove. I dont know how fussy the CRA is about this, unless the dollar figure is higher.

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