T1243 Form Guide (2026): Deemed Disposition When Leaving

Understanding the T1243 Form

Quick start: use the official source first, then follow this guide step by step: Download CRA Form T1243.

Quick tip: download the official T1243 first, then fill it while following this guide: Download T1243 form (official CRA).

The T1243 Deemed Disposition of Property by an Emigrant of Canada is one of the most important tax forms you will file when leaving Canada. While the T1161 lists your properties, the T1243 is where you actually calculate the capital gains or losses on each property that is subject to the deemed disposition rules.

When you cease to be a Canadian tax resident, the Income Tax Act treats you as if you sold most of your assets at their fair market value (FMV) on the day you leave. This "deemed sale" can create taxable capital gains, even though you still physically own the assets.

Who Needs to File?

You must file the T1243 if you:

• Emigrated from Canada during the tax year
• Owned property that is subject to deemed disposition (basically, anything other than Canadian real property, certain pension rights, and a few other exemptions)
• Had capital gains or losses resulting from the deemed disposition

Key Concepts You Need to Know

Adjusted Cost Base (ACB)

The ACB is essentially what you paid for the property, plus any costs to acquire it (like broker fees). For newcomers who brought property into Canada, your ACB is the fair market value on the date you became a Canadian resident. This is extremely important — it means you are only taxed on gains that occurred while you were a Canadian resident.

Fair Market Value (FMV) on Emigration Date

This is what the property would sell for on the open market on the day you leave Canada. For publicly traded investments, this is simply the closing market price. For other assets, you may need an appraisal.

Capital Gain or Loss

The formula is straightforward:

Capital Gain = FMV on emigration date − ACB − Disposition costs

In Canada, only 50% of the capital gain (called the "taxable capital gain") is added to your income. This is known as the capital gains inclusion rate. Note that for 2025 and 2026, the inclusion rate may be higher for gains above $250,000 — check the latest CRA guidelines.

Step-by-Step: Completing the T1243

Step 1: List Each Property Subject to Deemed Disposition

Create a detailed list of every property that is deemed disposed. For each item, record:

• Description of the property
• Number of units (e.g., shares, units of a mutual fund)
• FMV on your emigration date
• ACB
• Outlays and expenses related to the deemed disposition

Step 2: Calculate the Gain or Loss for Each Property

For each property:

1. Enter the proceeds of disposition — this equals the FMV on your emigration date
2. Subtract the ACB
3. Subtract any outlays and expenses (these are usually minimal for a deemed disposition since you aren't actually selling)
4. The result is your capital gain or loss

Step 3: Apply the Inclusion Rate

Multiply each capital gain by the inclusion rate (50% for most gains under $250,000 as of the latest rules) to get the taxable capital gain. Capital losses are calculated the same way — 50% becomes an "allowable capital loss."

Step 4: Transfer Totals to Your T1 Return

The total taxable capital gains from the T1243 are transferred to Schedule 3 (Capital Gains or Losses) of your T1 General tax return. This amount then flows to Line 12700 of your T1 return.

Step 5: Consider Electing to Defer Payment

If you have a large departure tax bill, you can elect to defer the payment by providing adequate security to the CRA. To do this:

• File Form T1244 — Election Under Subsection 220(4.5) to Defer Payment of Tax on Income Relating to the Deemed Disposition of Property
• Provide acceptable security (such as a bank letter of credit or a charge on Canadian real property)
• Interest will still accrue on the deferred amount, but you won't have to pay the lump sum immediately

Properties Exempt from Deemed Disposition

Not all your assets trigger departure tax. The following are exempt:

• Canadian real property — houses, condos, land located in Canada (these will be taxed when you actually sell them later)
• Canadian business property — if you carry on business through a permanent establishment in Canada
• Registered accounts — RRSPs and RRIFs are not deemed disposed (but there are withholding rules when you withdraw as a non-resident)
• Pensions — rights under registered pension plans, CPP, and OAS
• Stock options — employee stock options subject to Canadian tax at exercise

Practical Example

Let's say Priya came to Canada in 2020 and is emigrating in June 2026. She owns:

• 100 shares of Shopify stock: FMV when she arrived in 2020 = $800 per share (her ACB). FMV when leaving in 2026 = $120 per share. Capital loss = ($120 − $800) × 100 = −$68,000
• An investment portfolio: ACB (FMV at immigration) = $50,000. FMV at emigration = $85,000. Capital gain = $35,000
• A condo in Toronto: Exempt from deemed disposition (Canadian real property)

Priya's net capital gain is $35,000 − $68,000 = −$33,000 (a net capital loss). She owes no departure tax and can carry this loss back to previous years or forward for future Canadian-source capital gains.

Common Mistakes

• Using the wrong ACB for properties brought into Canada: Your ACB is the FMV when you became a resident, not what you originally paid in your home country.
• Forgetting to file both T1243 and T1161: These forms work together. The T1161 is the list; the T1243 is the calculation.
• Not claiming capital losses: Losses are valuable — they can offset gains in the current year, be carried back three years, or carried forward.
• Ignoring tax treaties: Canada has tax treaties with many countries that may affect how departure tax works. For example, some treaties allow you to be treated as not having emigrated for certain assets.
• Failing to report cryptocurrency: Digital assets like Bitcoin and Ethereum are property and are subject to deemed disposition rules.

Filing Deadline and How to Submit

The T1243 is filed with your T1 return for the year of emigration. The deadline is April 30 of the following year (or June 15 if you are self-employed, but any balance owing is still due by April 30).

You can file your T1 return electronically using NETFILE-certified software — the T1243 amounts are entered through Schedule 3. If filing on paper, attach the completed T1243 to your return and mail it to your assigned tax centre.

Getting Professional Help

Departure tax calculations can be complex, especially if you have a mix of Canadian and foreign investments, stock options, or private company shares. Consider consulting a tax professional experienced in cross-border taxation. Many community organizations, including WelcomeAide, can refer you to affordable tax help for newcomers and emigrants.

Contact the CRA at 1-800-959-8281 for general enquiries, or visit canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html for full details on your departure tax obligations.

Download This Form

Before you submit anything, download the latest official file here: Download T1243 form (official CRA). Always use the latest version.

Related internal guides

• IMM 5257 guide
• IMM 1294 guide
• IMM 1295 guide
• IMM 5409 guide
• IMM 5532 guide

Official external resources

• Download T1243 form (official CRA)
• IRCC forms and guides library
• IRCC document checklists
• CRA forms and publications
• IRCC processing times

Official Download and Useful Links

For accuracy, always start from the official source: Download CRA Form T1243.

Related internal guides

• Provincial health cards guide
• BC PNP forms guide
• IMM 5532 guide
• IMM 5409 guide
• PGWP application guide

Official external resources

• Download CRA Form T1243
• CRA emigrants tax guide
• CRA Form T1161
• CRA Form T1244
• CRA emigrants publication

Beyond the T1243: Other Essential Steps When Leaving Canada

While understanding the T1243 Form and deemed disposition is crucial, your departure from Canada involves many other practical considerations. A smooth transition requires careful planning beyond just your tax obligations. First, ensure all your financial affairs are in order. This includes closing Canadian bank accounts, transferring any remaining funds, and cancelling credit cards. Our Banking Comparison tool offers insights, even when you're preparing to close accounts, by helping you understand international transfer options or final statements.

Next, address all your utility and service contracts. This means cancelling your internet, electricity, gas, and any other recurring services. Don't forget your mobile phone plan; our Phone Plan Finder can help you review your current contract terms if you need to understand cancellation policies. It's also vital to inform the Canada Revenue Agency (CRA) of your new mailing address to ensure you receive any final correspondence or reassessments. You can update your address through your CRA My Account or by contacting them directly.

Additionally, review any government benefits you may be receiving. Understanding the implications of your departure on benefits like the Canada Child Benefit or GST/HST credit is important. Our Benefits Finder can help you understand what you might be entitled to, and conversely, what benefits cease upon your departure. For a comprehensive overview of all the administrative tasks, consider using a personalized departure checklist. While our Settlement Checklist focuses on arrival, many of its organizational principles can be adapted for a smooth exit. For official guidance on updating your information with the government, including your Social Insurance Number (SIN) implications, visit the Service Canada website.

Seeking Expert Advice for a Stress-Free Departure

Given the complexities of deemed disposition and international tax laws, relying solely on self-assessment can lead to costly errors. It is highly recommended to consult with a qualified Canadian tax professional, especially one experienced in cross-border taxation or departure tax planning. These experts can help you...

Related Resources

WelcomeAide Tools

• WelcomeAide Blog — browse all newcomer guides and updates
• Tax Guide — understand taxes, filing deadlines, and common credits
• Banking Guide — compare newcomer banking options and account types
• Cost Calculator — estimate monthly living costs in Canada
• Benefits Guide — find federal and provincial financial supports

Related Guides

• Guide to the T1161 List of Properties by an Emigrant of
• How to Use My CRA Account Online
• How to Fill Out the T1159 Income Tax Return for Artists

Official Government Sources

• Canada Revenue Agency (CRA)
• Government of Canada Taxes
• File an Income Tax Return
• Financial Consumer Agency of Canada
• Government of Canada Finance Services
• GST/HST for Businesses