What is Form T1243 and how does it relate to departure tax?
Form T1243, Deemed Disposition of Property by an Emigrant of Canada, is where the actual departure-tax calculation happens. While T1161 discloses what you owned, T1243 works out the numbers: for each property caught by the deemed disposition rule, it records the fair market value on your departure date, your original cost, and the resulting capital gain or loss, which then flows into your T1 return for the year you left.
You file it alongside your departure-year return, not as a separate later filing, and it only covers property actually subject to deemed disposition — assets that are exempt, like Canadian real estate or registered accounts, don't need to go through this calculation even if they appear on your T1161 property list. If you're also electing to defer payment of the resulting tax, that election is made in connection with the amounts calculated on this form.
Because the form requires a defensible fair market value for every affected asset, including anything without an obvious market price, getting professional valuations lined up before you file, rather than estimating, reduces the risk that CRA later challenges the numbers you reported.
Key takeaways
- Form T1243 calculates the actual capital gain or loss from the deemed disposition, asset by asset.
- It's filed with your T1 return for the year you emigrate.
- Only property actually subject to deemed disposition goes on this form, unlike the broader T1161 list.
- Defensible fair market valuations, not estimates, protect you if CRA later reviews the figures.