Filing a nonresident return after deemed disposition - T1161 T1243 T1244

I did a deemed disposition as of jan 1 2005, and liquidated all my canadian investments in 2006.

This year, I received:
an NR4 and a T2062 for my life insurance policy
(the NR lists gross income but no withheld tax)
a t5 (?) for interest income
a mutual fund t5008 for securities I sold

I know how to show the interest income, but am not sure a) why I got an NR4 and a T2062 on the life insurance. How does one show this on their return?

Lastly, my understanding is that my tax obligation to canada on capital gains on the mutual funds is complete, and I just show those now on my US return. Is this accurate?



david ingram replies:
> Assuming that you filed your T1161 and T1243 and paid the tax on the deemed disposition, you are finished,.
> However, if you also filed form 1244 to defer the tax until actual sale, you would need to pay that tax now that you have sold it.
> The T5 implies that no tax was withheld. Technically, you need to file a tax return under article XI of the US Canada Tax Treaty to pay 10% tax on the interest.
> However, most of the time, you would just send the CRA a cheque for 10% and a copy of the T-5.and forget about the T1.
> Then, on the 1040, you would report the interest again, the actual mutual fund sales and have to decide if there was a taxable portion to the life insurance policy between the time you left Canda and the cashed in time. You would then claim the 10% tax on the interest on US form 1116 with your 1040.