T1161 + T1243 + T1244: The Emigrant Forms Checklist

Leaving Canada triggers a distinct set of CRA filings beyond the standard T1 return. Three forms govern the departure tax regime: T1161, T1243, and T1244. Each has a specific trigger, a specific deadline, and specific consequences for missing it. This checklist covers when each applies and what you need to include.

Form T1161 — list of properties

What it is. Form T1161 requires you to list all property you owned at the time of departure with a total fair market value exceeding $25,000 (excluding personal-use property, cash, and CPP/QPP/OAS/RPP entitlements). It is a disclosure form, not a calculation form — it does not by itself trigger tax.

When it applies. T1161 is required for any individual who ceases Canadian residency and who owned property (excluding the exempt categories) with total FMV over $25,000 on the departure date. Both taxable and excluded property must be listed; excluded property such as Canadian real estate is included in the list even though it is not subject to deemed disposition.

What to include. For each property you list: description, FMV on departure date, adjusted cost base, and whether it is excluded from deemed disposition. Common inclusions are non-registered investment accounts, shares of private companies, cryptocurrency, and collectibles.

Deadline. T1161 is filed with your departure year T1 return. The T1 itself is due April 30 of the following year (June 15 if you or your spouse had self-employment income, but interest runs from April 30).

Late-filing penalty. A failure to file T1161 attracts a penalty of $25 per day, with a minimum of $100 and a maximum of $2,500. The penalty applies even if no departure tax is payable — it is a disclosure obligation, not a payment obligation.

Form T1243 — deemed disposition

What it is. Form T1243 is the calculation form for the departure tax deemed disposition. It reports the deemed proceeds (FMV on departure date), the adjusted cost base, and the resulting capital gain or loss for each property subject to deemed disposition under ITA section 128.1(4).

When it applies. T1243 is required whenever you have property subject to the deemed disposition rules — that is, capital property that is not in an excluded category. If you owned only Canadian real property, RRSPs, and TFSAs, and no other investment assets, you may not need T1243.

What to report. Each line of T1243 corresponds to a deemed disposition event: the property description, FMV, ACB, expenses of disposition, capital gain or loss. The net capital gain flows to Schedule 3 of your T1 and is included at 50% in income.

Interaction with the principal residence exemption. If you owned a Canadian principal residence that you disposed of (actual or deemed) in the departure year, the principal residence exemption is calculated on a separate row on Schedule 3, not T1243. T1243 is specifically for property subject to deemed disposition.

Deadline. Filed as part of the departure year T1.

Form T1244 — defer payment via security

What it is. Form T1244 is an election under subsection 220(4.5) of the Income Tax Act to defer payment of departure tax. You can make it regardless of the amount of tax. You then pay the tax later, without interest, when you sell or otherwise dispose of the property. The election does not apply to the deemed disposition of an employee benefit plan.

When it applies. T1244 is useful when the deemed disposition results in a material tax liability that would be difficult to pay because the underlying assets have not actually been sold — appreciated shares you are holding long-term, an interest in a private company, or a portfolio of investments you do not want to liquidate at departure time.

Security. You have to provide adequate security only if the federal tax owing on the deemed disposition is more than $16,500 (more than $13,777.50 for former residents of Quebec). You may also be required to provide security for any provincial or territorial tax payable. Contact the CRA as soon as possible, before April 30, to make acceptable arrangements.

Interest. The deferred tax is paid without interest when you sell or otherwise dispose of the property.

Deadline. You must make the T1244 election by April 30 of the year after you emigrate, even if your T1 return is due on June 15 because of self-employment income.

Deadline and late-filing penalties

T1161 and T1243 go with the departure year T1 return. The T1244 election has its own April 30 deadline. Key dates:

• April 30 of the year following departure: standard T1 filing deadline; tax balance due; deadline for the T1244 election.
• June 15 of the year following departure: extended T1 filing deadline if you or your spouse earned self-employment income in the departure year. Interest on any balance owing still runs from April 30. The T1244 election is still due April 30.
• Before April 30: if security is needed, contact the CRA as soon as possible to arrange it.

Late-filing the T1 itself triggers the standard 5% of balance owing plus 1% per month penalty (maximum 12 months for a first offence), in addition to the specific T1161 penalty noted above.

Professional advice. Departure tax can involve complex valuations — particularly for shares of private companies or interests in family trusts. An independent business valuator or CPA experienced in cross-border tax should be engaged early, ideally six to twelve months before the planned departure date.

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