T1243 is the CRA form you complete if you stopped being a resident of Canada in the year and were deemed to have disposed of certain property when you left. It works out the capital gain or loss on each property at its fair market value on your emigration date, and those gains or losses go on Schedule 3 of your final return. This is the calculation behind what's often called departure tax.
This guide follows Form T1243 E (22) and the CRA's emigrant pages, as of October 2026. All amounts are in Canadian dollars.
What a deemed disposition is
The CRA explains that when you stop being resident, you're treated as if you sold most of your property at its fair market value on the day you left, and immediately bought it back for the same amount. No sale happens and no cash comes in, but any growth in value up to that day becomes a capital gain on your last Canadian return.
Property that's left out
The form lists the main exceptions, which don't go on T1243:
- Canadian real or immovable property, Canadian resource property and timber resource property.
- Canadian business property, including inventory, if the business is carried on through a permanent establishment in Canada.
- Pension plans, annuities, RRSPs, RRIFs, RESPs, RDSPs, TFSAs, deferred profit-sharing plans, employee benefit plans, certain trust interests, employee security options subject to Canadian tax, and interests in Canadian life insurance policies other than segregated fund policies.
- Property you owned when you last became resident, or inherited afterwards, if you were resident for 60 months or less in the 10 years before you left and you're not a trust.
That fourth rule helps people who came to Canada for a few years: what they brought with them isn't caught. Shares, funds and foreign property you held as a long-term resident generally are caught.
Opting in for real property or business property
Here's the part most guides skip. The form notes that you can elect to declare a deemed disposition of property in item 1 or item 2, such as Canadian real estate. If you do, you include it on T1243 and also complete Form T2061A. It's an election, not a requirement, so check whether it helps your position before you file.
The 7 columns
| Column | What goes in it |
|---|---|
| 1 | Number of shares, if applicable |
| 2 | Description: company name and share class or stock symbol, or the address of buildings or land |
| 3 | C for Canadian property or F for foreign property |
| 4 | Year of acquisition |
| 5 | Fair market value on the date you emigrated |
| 6 | Adjusted cost base |
| 7 | Gain or loss: column 5 minus column 6 |
If your investments sit in a portfolio, the form asks for a complete breakdown rather than one line. Then carry the gains and losses to Schedule 3, attach T1243 and Schedule 3 to your return, and keep the description of each property, because you'll need it again if you sell later.
Your emigration date
The CRA says you usually become a non-resident on the latest of three dates: the day you leave Canada, the day your spouse or common-law partner and dependants leave, or the day you become resident in your new country. Use the province or territory where you lived on that date for the return, which is usually the T1 General package for the year you left.
The forms that travel with T1243
| Form | Purpose |
|---|---|
| T1161 | Lists all your properties if their total fair market value was more than $25,000 |
| T1244 | Elects to defer paying the departure tax until you sell |
| T2061A | Elects to include real or business property in the deemed disposition |
The T1161 guide covers the property list and its late-filing penalty. On deferral, the CRA says that as of October 2026 you must provide adequate security if the federal tax on the deemed disposition is more than $16,500, or more than $13,777.50 for former residents of Quebec.
If you come back
If you left after October 1, 1996 and later re-establish Canadian residency, you can elect to unwind a deemed disposition on property you still own, reducing the gain you reported when you left. The request goes in writing by your filing due date for the year you return, with a list of the properties and their fair market values. If you sell deemed-disposed property while abroad, the CRA asks you to report the sale to Non-Resident T1 Adjustments, using the description from your original T1243.
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Step by step
- Fix your emigration date using the CRA's three-date test.
- List every property you owned that day and strike out the excluded categories.
- Get the fair market value of each remaining property on that date and its adjusted cost base.
- Complete the 7 columns on T1243 and carry the totals to Schedule 3.
- Decide on any T2061A or T1244 election, and complete T1161 if your total property was over the threshold.
The verdict
T1243 is where leaving Canada turns into a tax bill on gains you haven't cashed. Get date-of-departure values for every share and fund, check the 60-month rule if you arrived recently, think about the T2061A and T1244 elections before you file, and keep a copy of the form for the day you sell or return.
Frequently asked questions
What is Form T1243?
It's the CRA form for calculating capital gains or losses on property you were deemed to dispose of when you stopped being a resident of Canada.
What property is excluded from T1243?
Canadian real property, Canadian business property used through a permanent establishment, most pensions and registered plans such as RRSPs and TFSAs, and certain property of short-term residents.
Where do T1243 gains go?
Carry the capital gains or losses from T1243 to Schedule 3 of your return and attach both.
Do I need T1161 as well as T1243?
You complete T1161 if the fair market value of all the properties you owned when you left was more than $25,000.
Can I defer the tax from T1243?
Yes. You can elect on Form T1244 to defer paying the tax until you sell the property, without interest.
What is the 60-month rule for emigrants?
Property you owned when you last became resident, or inherited afterwards, is excluded if you were resident for 60 months or less in the 10 years before you emigrated.
