Personal Finance

Emigrating Canada Question

  • Last Updated:
  • Feb 13th, 2021 12:25 pm
Jul 8, 2017
219 posts

Emigrating Canada Question

My 2020 return will be a single day (Jan 1st).
Inventory cost basis on departure is $17k.
Primary ties & most secondary ties severed.
After emigrating, sole-prop will continue under the same BN (Business Number), but now US based (no CDN permanent establishment).

I will:

•Enter T1 departure date: 01/01/2020
•Enter $17k on T2125 gross revenue & COGS (zeros out).
•Collect GST on deemed disposition (T2125 Part 3A).
•File T2061a & T1243 with cost basis & FMV of $17k (zeros out, no schedule 3)
•Continue to operate under the same BN, but now as a US sole prop
•Mail my return (software doesn't support T2061a & T1243)


1. FMV is subjective. I sell "used items". Im treating my inventory as a 1:1 basis to FMV with an argument that its mostly outdated. Is CRA aggressive & will they question this?
2. Is the $2.5k penalty (failing to notify CRA of disposition) only for Form T1161?
3. Does a 1 day return raise flags?
4. Do I Include the deemed disposition GST & ITC on the US sole props 2020 GST return?
1 reply
Sr. Member
Feb 12, 2019
828 posts
Vancouver BC
I think you need to see a professional tax accountant to help you with those questions.


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