Ceasing Canadian residency: the deemed disposition, departure tax and how to defer it, Form NR73, Part XIII withholding after you leave, and what to do with a Canadian corporation or home.
21 guides, each written by a CPA licensed in the US and Canada.
Yes. Form T1244 elects under ITA 220(4.5) to defer the tax on your deemed disposition, and the statute deems security accepted up to a floor amount.
Cross-BorderNot automatically. You need the Article XIII(7) treaty election on your first US return after the move, or both countries tax the same gain twice.
Cross-BorderWhen a Canadian resident emigrates, Canada treats them as having sold most of their property at fair market value on the date of departure.
Canadian TaxA deemed disposition is a fiction in the Income Tax Act that treats you as having sold property at fair market value (FMV).
Cross-BorderWhen a Canadian resident dies, Canada taxes every dollar of unrealized capital gain as if the person sold everything the day before death.
Cross-BorderLeaving Canada doesn't cancel the principal residence exemption, and the departure rules don't trigger it either. Covers key rules, filing requirements,.
Cross-BorderCanada gives an individual 10 calendar years from that year's end under ITA 152(4.2), and the Minister may. Usually yes.
Cross-BorderThe complete tax checklist for Canadians moving to Australia permanently. Australia has no mirror arrival tax.
Cross-BorderTax checklist for Canadians moving to Dubai or the UAE. Departure tax, RRSP, TFSA, pensions, Part XIII withholding without a treaty cap, and Section 217.
Cross-BorderTax checklist for Canadians moving to Mexico. Departure tax, RRSP, TFSA, pensions, the Canada-Mexico treaty step-up election, and SAT registration.
Cross-BorderThe tax checklist for Canadians moving to Portugal. Departure tax, RRSP, TFSA, pensions, the Canada-Portugal treaty, and what replaced the NHR regime.
Cross-BorderThe tax checklist for Canadians moving to the UK. Departure tax, RRSP, TFSA, pensions, the Canada-UK treaty, and the Statutory Residence Test.
Cross-BorderSix steps: sever ties, inventory assets, file T1161 and T1243, settle RRSP and TFSA, check CPP/OAS, and shut down CRA benefits.
Cross-BorderWhen you leave Canada, payers of Canadian-source income must withhold Part XIII tax at 25%, reduced by treaty.
Cross-BorderProvincial health insurance is one of the first things people lose when they leave Canada and one of the last things they regain when they return.
Cross-BorderNo CRA description of Form NR73 we could locate makes it mandatory, and what it gives back is an opinion that doesn't bind the CRA.
Cross-BorderA section 217 election trades the flat 25% withholding on non-resident RRSP income for graduated Canadian rates. Who wins, the June 30 wall, and the math.
Cross-BorderIt stays Canadian but loses CCPC status the day you leave. What changes is status, on two dates rather than one. Covers treaty provisions, foreign tax.
Cross-BorderITA 128.1(8) lets you elect to reduce the gain Canada taxed at departure, but only when you later sell the property at a loss and the property.
Cross-BorderWhen you leave Canada, your RRSP stays open. Contributions are deductible from income, investments grow tax-deferred, and withdrawals are taxed as income.
Cross-BorderCanada's departure tax, also called the exit tax, deems most of your property sold at fair market value when you cease residence.