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 to defer payment of departure tax by posting acceptable security with the CRA. It converts the immediate cash obligation into a deferred obligation secured by a pledge or guarantee.

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.

Acceptable security. The CRA accepts: a lien registered against Canadian real property; a letter of credit from a Canadian financial institution; government bonds or guaranteed investment certificates; corporate bonds of investment grade; or other security acceptable to the Minister. Personal guarantees are not acceptable.

Security amount. The required security equals the departure tax owing on the deferred gains. The CRA will confirm the acceptable security amount before you formally post it.

Interest. Deferral does not freeze interest. Prescribed rate interest accrues on the deferred amount from April 30 of the following year. The prescribed rate changes quarterly; historically it has ranged from 4% to 9%.

Deadline and the no-late-election rule. The T1244 election must accompany your departure year T1 return. You cannot file a late or amended T1244 after the filing deadline. Missing this deadline forfeits the deferral option entirely, and the full tax becomes payable immediately.

Deadline and late-filing penalties

All three forms — T1161, T1243, T1244 — are due with the departure year T1 return. Key dates:

• April 30 of the year following departure: standard T1 filing deadline; tax balance due.
• June 15 of the year following departure: extended deadline if you or your spouse earned self-employment income in the departure year. Interest on any balance owing still runs from April 30.
• Prior to filing T1: the CRA recommends filing T1244 as early as possible in the tax year to allow time to arrange and confirm acceptable security before the April 30 balance-due date.

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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