Canada's 60 month rule for departure tax
QUESTION:
I am a dual citizen and file both Canada and US tax returns since
returning to live in Canada.
I heard that if I reside in Canada for more than "60 months in any 10 year
period" and then move to the US, that Canada will impose a capital gains tax
on my US real estate as if I was selling it on the day that I moved back to
the US.
My question is: Will Canada also impose a capital gains tax on my US
variable annuity at the same time.
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Any property (out of country property or in Canada property) you bought or
inherited while you "were" a resident of Canada is subject to Capital Gains
Departure tax whether you owned it for one month or nine years. The
exception is out of country property you owned before you came to Canada or
out of country property you inherited while you were a resident if you were
a resident of Canada for less than 60 months in the ten year period BEFORE
you emigrated.
You can find the reference in paragraph (vi) on form 1243.
The variable rate annuity is possibly covered by paragraph (iii) which
excludes:
pensions and similar rights, including registered retirement savings plans,
registered retirement income funds, and deferred profit sharing plans
The question is can the annuity be included in (iii) or not. I do not know
the answer off the top of my head and am really too busy to look it up or
spend non-paid time at this time of year on it but I hope that by
circulating it to the 13,000 people who receive this, someone may know the
answer and send it back to me, _ PLEASE!!
I am a dual citizen and file both Canada and US tax returns since
returning to live in Canada.
I heard that if I reside in Canada for more than "60 months in any 10 year
period" and then move to the US, that Canada will impose a capital gains tax
on my US real estate as if I was selling it on the day that I moved back to
the US.
My question is: Will Canada also impose a capital gains tax on my US
variable annuity at the same time.
---------------------------
Any property (out of country property or in Canada property) you bought or
inherited while you "were" a resident of Canada is subject to Capital Gains
Departure tax whether you owned it for one month or nine years. The
exception is out of country property you owned before you came to Canada or
out of country property you inherited while you were a resident if you were
a resident of Canada for less than 60 months in the ten year period BEFORE
you emigrated.
You can find the reference in paragraph (vi) on form 1243.
The variable rate annuity is possibly covered by paragraph (iii) which
excludes:
pensions and similar rights, including registered retirement savings plans,
registered retirement income funds, and deferred profit sharing plans
The question is can the annuity be included in (iii) or not. I do not know
the answer off the top of my head and am really too busy to look it up or
spend non-paid time at this time of year on it but I hope that by
circulating it to the 13,000 people who receive this, someone may know the
answer and send it back to me, _ PLEASE!!
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