Hi all.
I have a married couple (in their 80’s) that transferred their principal residence as well as their condo to a Joint Partner Trust. I have researched numerous articles as well as CRA. My question is, do I have to report the “deemed disposition” of their PR and their condo on their 2024 return? I did find that the PR designation should be filled out and kept on file but didn’t need to be submitted on the CRA website. Is this correct? Do I have to report the disposition of their condo at ACB (transfer amount) on the Schedule 3 or is it automatically assumed?
Thanks for you help.
Yes. It would make no sense to report the disposition of the PR and file the PRE without doing so for the other assets. All transfer at ACB so there is no gain / loss, but because they actually DO transfer to different ownership (all the accounts should have been changed from their original accounts/account holders and shouild now be in the name of the JPT) Sch 3 is requisite.
Yes, I think I will file the PR designation as well as the other property just to be sure since I don’t see any downside to doing so. As you indicated, all assets are transferred at the acb so no tax consequences. Thanks for your input.
I did talk to a higher up CRA representative this morning and she indicated that the deemed disposition of the PR and other real estate to the joint partner trust should be reported on the T1 for the year of transfer. This means a PR designation at cost as well as the other property on the Schedule 3 at their acb as well.