Ex-Canadian-resident resuming residence - deemed disposition of property?

Question

If I have owned an investment property in Toronto as a non-resident of Canada for at least four years, and am resuming residence in Canada for job reasons, is there going to be a deemed capital gains tax on this in the first year even though I have not sold it? Is there a way to get this tax deferred to the time I actually sell it - what's involved?

Answer 1

Are you talking about moving into the investment property?  if so, then yes, there will be a deemed disposition of property on it becoming your principle residence.  I am not sure if that means you will pay taxes now, or if it just affects your future gains on the property.  You should speak with a tax accountant, the wrong decision could cost you thousands.

Answer 2

There is no deemed disposition of your cdn investment property upon acquiring cdn residency.  Deemed disposition occurs only when leaving Canada (e.g., if you owned the cdn investment property prior to your departure out of Canada 4 yrs ago), or leaving this world (aka death), or change in use, and they dont apply to your situation.

ADDITIONAL COMMENTS:

As you dont change the investment property (business use) into a personal residence (personal use), there is no deemed disposition for capital gain purposes, and therefore thre is no need to defer any taxes.