CRA Tax Credits, claiming 100% ?

[a.lu 2]

Hi there! It's that time for taxes, and my husband (American petitioner) & I (Canadian beneficiary)  filed our taxes with H&R Block.

 

Now I have to do my Canadian taxes. I called CRA a few weeks ago telling them I now live in America and gave them my new address. While calling CRA, the nice man over the phone told me something writing at letter to CRA and claiming 100%... I was a bit confused by what he said, so I emailed the man who has helped me out with my taxes previously and he mentioned this is for tax credits. This is what my tax man said to me in the email, 

Quote

 

• When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).

 

• Your property could include the following: shares, jewelry, paintings or a collection.

 

• Jewelry paintings etc are considered  personal property and you will only have a capital gain on these properties if its fair market value (FMV) is greater than its cost (what you paid for it) or if the cost is less than $1000 the cost is deemed to be $1000 so that you will only have a capital gain if its FMV is greater than $1000.  Is this applicable in your case.

 

• As well if  the FMV of all the property you owned when you left Canada was more than $25,000, complete Form T1161, List of Properties by an Emigrant of Canada. Is this applicable.  See attached form as some property is exempt from reporting on this form. See below

 

• If fair market value of all the properties you owned when you left Canada was more than $25,000, excluding the following properties:

 

• 1) cash (including bank deposits);
• 2) pension plans, annuities, registered retirement savings plans, pooled registered pension plans, registered retirement income funds, registered education savings plans, registered disability savings plans, tax-free savings accounts, deferred profit-sharing plans, employee profit-sharing plans, employee benefit plans, salary deferral arrangements, retirement compensation arrangements, employee life and health trusts, and rights or interests in certain other trusts. For a complete list, refer to the definition of “excluded right or interest” in Subsection 128.1(10) of the Income Tax Act read without reference to paragraphs (c), (j) and (l);
• 3) property you owned when you last became a resident of Canada, or property you inherited after you last became a resident of Canada, if you were a resident of Canada for 60 months or less during the 10-year period before you emigrated and the property is not taxable Canadian property; and
• 4) any item of personal-use property (such as your household effects, clothing, cars, collectibles) that has a fair market value of less than $10,000"

 

The only jewelry I left Canada with was my engagement ring. I don't have any shares or collections/paintings... I don't have any property in Canada- I moved back home to save up money during my whole k1 visa process before I moved down to America. I crossed the border with only suitcases full of clothes. I'm having a hard time trying to start up the letter, so I was wondering if someone had an example letter? I tried looking it up and even reached out to a a fellow member here on VJ, but I'm not sure if she is really active.

 

Thank you guys!