Jump to content

Departure tax


Recommended Posts


I have a rental property outside of Canada and have been claiming CCA on the rental property for some time.

My question is - now I’m planning to emigrate from Canada and will be filing a final tax return with deemed disposition rule. There will be capital gain from the foreign rental property, but what about CCA recapture in this case? Do I also need to include the recapture as part of the final tax return income or can I recapture the CCA in the future when I actually dispose the property? 


Link to comment
Share on other sites

Hello PeteH,

It would best to contact the CRA and confirm with them.   For example there are  the following potential items with emigration :

*Departure tax

When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).

Form T1161, List of Properties by an Emigrant of Canada

*If the total FMV of all the property you owned when you left Canada was more than $25,000, complete Form T1161, List of Properties by an Emigrant of Canada.: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1161.html


To contact CRA :

1-800-959-8281 for inquiries related to individuals.


Telephone numbers – Canada Revenue Agency / CRA wait times:



Link to comment
Share on other sites


Thanks - yes, I'm aware of T1161 form. But would you by any chance know if CCA recapture occurs during "departure" or would that only kicks in at actual disposition in the future? Because CRA site only mentions capital gain, in it's "departure tax" 

Thanks again,

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...