Who this is for
- Individuals who stopped being Canadian residents during the year and owned shares, funds, foreign property or other assets
- People preparing the departure-year return who need to complete T1243 and carry it to Schedule 3
Not covered here
- A full departure tax calculation with rates
- Form T1161, the list of properties
- Deferring payment with Form T1244 and posting security
- Valuing private company shares, stock options and RSUs
What is Form T1243 and who must file it?
Form T1243 is where an individual who stopped being a resident of Canada during the year works out the capital gain or loss on property the law treats as sold at fair market value the moment before leaving. The form itself says to complete it if you ceased to be a resident in the year and were deemed to have disposed of property. You are then treated as buying the same property back at that value (Income Tax Act, s. 128.1(4)).
Attach T1243, and Schedule 3 if it applies, to the return for the year you left; it is due with that return, normally April 30 of the following year (June 15 if you or your spouse carried on a business, with any balance still due April 30). T1243 works out the gain or loss, Form T1161 lists what you owned, including property kept off T1243, and Form T1244 lets you postpone paying the tax on T1243 gains. The taxable part of a net capital gain is 50%; the calculation example walks through the tax.
What makes a case not simple: private company shares, stock options, foreign real estate, property that has lost value, a portfolio bought in several currencies, or a plan to defer payment. Gather before you start:
- Broker or fund statements dated on, or closest to, your departure date
- Purchase records for every holding, with dates and amounts
- For property you owned when you moved to Canada: its value on your arrival date and the exchange rate that day
- Appraisals for anything without a market price
- Exchange rates for each purchase date and for the departure date
The CRA's EFILE manual for 2025 returns excludes a return that includes T1243, T1244 or T1161 from EFILE, the service tax preparers use. The NETFILE restrictions for self-filers do not name these forms, so certified software may send it; if the software will not, print and mail the return. Check both for your year. Filing your departure return from abroad covers where to mail it and how to pay.
Which property goes on T1243, and which is excluded?
Every property you own at departure goes on T1243, Canadian or foreign, unless it falls in one of four excluded groups (T1243; CRA):
| Excluded group | What it covers |
|---|---|
| Canadian real property | Real or immovable property in Canada, Canadian resource property, timber resource property |
| Canadian business property | Capital property and inventory of a business you carry on through a permanent establishment in Canada |
| Excluded rights or interests | Pension plans, RRSPs, RRIFs, RESPs, RDSPs, TFSAs, FHSAs, annuities, employee security options subject to Canadian tax, certain trust interests, and life insurance policies in Canada other than segregated fund policies (s. 128.1(10) has the full list) |
| Short-term residents' property | Property you owned when you last became resident, or inherited after that, if you were resident for no more than 60 months in the preceding 120 months |
Canadian real estate that stays off T1243 can still need to be listed on Form T1161. The short-term rule has its own guide: leaving Canada within five years of arriving. Stock options and RSUs are covered in departure tax on stock options and RSUs.
How do I fill in each column of T1243?
Fill one row per property, with every amount in Canadian dollars. Page 2 of the form has seven columns:
| Column | What to enter |
|---|---|
| 1 Number of shares | Units or shares held, if applicable |
| 2 Description | Corporation name and class of shares (stock symbol), or the address or location of land or buildings |
| 3 C or F | C for Canadian property, F for foreign property |
| 4 Year of acquisition | The year you bought or received it |
| 5 Fair market value | Its value on the date you emigrated |
| 6 Adjusted cost base | Your cost for tax purposes; for most property you owned when you became a Canadian resident, its value on the date you arrived; taxable Canadian property, such as shares that draw most of their value from Canadian real estate, keeps its original cost (s. 128.1(1)(b)–(c)) |
| 7 Gain (or loss) | Column 5 minus column 6 |
For property bought in another currency, convert the cost at the exchange rate when you acquired it, and the value at the rate on the departure date (CRA). The CRA generally expects the Bank of Canada rate for the day (Schedule 3 instructions). Converting a foreign cost at the departure-date rate instead of the purchase-date rate changes the gain.
Write the description in column 2 so you can recognize the same holding years later: you will quote it to the CRA when you sell.
Must I break a portfolio down holding by holding?
Yes. The form says that if some or all of your investments are in a portfolio, you must provide a complete breakdown. One line for "brokerage account" is not enough; list each security, fund or other asset on its own row, then carry the totals to Schedule 3.
Attach a separate sheet in the same seven-column layout when the form runs out of rows.
How do T1243 results move to Schedule 3?
Each T1243 row goes on the Schedule 3 line for its type of property, and Schedule 3 nets most gains against losses. Two exceptions: a loss on personal-use property (line 9) usually cannot be deducted, and a loss on listed personal property (line 10), such as art, jewellery, rare books, stamps or coins, can only offset gains on listed personal property. The Schedule 3 lines most often used for departure property:
| Schedule 3 part | Typical departure property | Goes on line |
|---|---|---|
| 4 | Publicly traded shares, mutual fund units and other shares | 13200 |
| 5 | Real estate, depreciable property and other properties | 13800 |
| 6 | Bonds, debentures, promissory notes | 15300 |
| 7 | Crypto-assets | 15301 |
| 9 | Personal-use property | 15800 (total gain only) |
| 10 | Listed personal property | 15900 (net gain only) |
The net result flows to the return like any capital gain or loss. Crypto has its own guide: departure tax on crypto.
What if the deemed sale gives income rather than a capital gain?
T1243 and Schedule 3 are built for capital gains. Some property, such as goods a business holds for sale outside Canada, is still caught by the deemed sale (s. 128.1(4)(b)), but its gain is business income, not a capital gain. The CRA notes that even ordinary shares can give business income when you trade them as a business (CRA). Whether you are a trader or an investor turns on your facts. The answer changes how much of the gain is taxed, and the CRA can challenge it.
Can I include my Canadian home or business property with Form T2061A?
Yes. An individual can elect on Form T2061A to treat Canadian real property or Canadian business property as sold on departure too. Electing on a home means reporting its gain or loss now, so whether the principal residence exemption covers it matters before you elect. That property then goes on T1243, and the T2061A form is attached to the departure-year return.
Why anyone would: to use a loss on that property against gains on the rest of the departure list, or to fix a new cost at the departure-date value. The law limits the result: a loss from the elected property can offset gains from your other departure sales, but it cannot push your income below the lower of your income with no departure sales and your income without the election (s. 128.1(4)(d)). The property also stays Canadian property with its own rules when you later sell as a non-resident, so this choice needs advice on your numbers.
What records support the values if the CRA asks?
Keep the evidence for columns 5 and 6 of every row. The CRA says you need not attach purchase and sale documents but should keep them in case it asks (CRA).
| Column | Records to keep |
|---|---|
| 5 Fair market value | Departure-date statements, closing prices, appraisals, exchange rate used |
| 6 Adjusted cost base | Trade confirmations, reinvestment records, inheritance or gift values, arrival-date values for property owned when you became resident, exchange rates on each purchase date |
| 4 Year of acquisition | Purchase or transfer records, especially for the short-term residents' exclusion |
If the CRA questions a value, see when the CRA disputes your departure value.
What do I send the CRA when I later sell property listed on T1243?
When you later sell property reported on T1243, the CRA asks you to send a list to "Non-Resident T1 Adjustments" at the Winnipeg Tax Centre with:
- The description of the property, as on your T1243
- The number of shares disposed of, if any
- The date of disposition
The CRA says any resulting amount owing is due by April 30 of the year after the sale. This matters most when you deferred the tax with Form T1244. If the property fell in value after you left, see shares that fell after you left Canada. If you return to Canada still owning it, see moving back after paying departure tax.
Example
All figures are illustrative and in Canadian dollars.
A three-line T1243
| Shares | Description | C/F | Year | Value | Cost | Gain (loss) |
|---|---|---|---|---|---|---|
| 1,000 | Canadian ETF units | C | 2018 | C$45,000 | C$30,000 | C$15,000 |
| 200 | US company shares | F | 2020 | C$40,000 | C$50,000 | (C$10,000) |
| Gold coins | F | 2021 | C$12,000 | C$9,000 | C$3,000 |
Each row goes on its Schedule 3 line; coins held for personal enjoyment are listed personal property (line 10). The net gain of C$8,000 reaches the return; at the 50% inclusion rate, C$4,000 is taxable.
Arrived four years ago with a foreign apartment
A person moved to Canada four years ago, already owning an apartment abroad, and now leaves. If they were resident for no more than 60 of the 120 months before leaving, counting any earlier stay in Canada in that window, the apartment can stay off T1243 under the short-term residents' exclusion. A brokerage account opened in Canada still goes on T1243.
Selling two years after leaving
Two years after departure, the person sells all 1,000 ETF units. They write to Non-Resident T1 Adjustments at the Winnipeg Tax Centre with "Canadian ETF units", 1,000 units, and the sale date, matching the T1243 description.
Different for you?
- You own shares of a private company: valuation and later rules differ; see departure tax on private company shares and get individual tax help.
- You hold stock options or RSUs: some are excluded and some are not; see departure tax on stock options and RSUs and get individual tax help.
- You own foreign real estate or other assets without a market price: column 5 needs a supportable value; get individual tax help.
- Some holdings show losses, or you are weighing a T2061A election: the loss limits in the law decide what helps; get individual tax help.
- You already left and did not file T1243, or filed late: see left Canada without telling the CRA and get individual tax help.
- You moved to Canada owning the property: its cost is usually its value when you arrived; get individual tax help.
- You trade often or hold goods for a business abroad: whether the gain is business income needs settling before you file; get individual tax help.
- You want to postpone paying: see deferring departure tax.
- You need the list of properties: see Form T1161.
- You want the whole departure picture: start with leaving Canada.
Figures on this page
| Figure | Value | Source |
|---|---|---|
| Usual Canadian individual return filing date The following April 30, subject to the self-employed and other exceptions in section 150 | April 30 | Income Tax Act, paragraph 150(1)(d)(i) Checked |
| Canadian individual return filing date when the individual or spouse carried on business The following June 15 for qualifying individuals under paragraph 150(1)(d)(ii) | June 15 | Income Tax Act, paragraph 150(1)(d)(ii) Checked |
| General taxable capital gain inclusion rate General rule under Income Tax Act section 38(a); exceptions apply | 50% | Justice Laws: Income Tax Act, section 38 Checked |
| Canadian departure exception for property owned on immigration For an individual who owned the property when they last became Canadian resident | No more than 60 months in the preceding 120 months | Justice Laws: Income Tax Act, section 128.1(4)(b)(iv) Checked |
Primary sources
- CRA: Form T1243, Deemed Disposition of Property by an Emigrant of Canada
- CRA: Form T1243 (PDF)
- CRA: Dispositions of property for emigrants of Canada
- CRA: Form T2061A
- CRA: Form T2061A (PDF)
- Income Tax Act, section 128.1
- CRA: Completing Schedule 3
- CRA: Tax treatment of mutual funds
- CRA: Calculating and reporting your capital gains and losses
- CRA: RC4018 Electronic Filers Manual, chapter 1
- CRA: NETFILE restrictions
- Income Tax Act, section 150
About this guide
Published by Cloud Accounting under standing professional approval. This version has no separately recorded personal review. It explains general rules for the tax year shown. It is not advice for your situation.
Changes
- : First published.