How an emigrant from Alberta elects under subsection 220(4.5) on Form T1244 to defer payment of departure tax, and what the CRA pages say (and do not say) about the security that must back the deferral.
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Step 1 — Fix the date of emigration
Fix the date of emigration and record it on the return. Enter the date of departure from Canada on page 1 of the return in the "Residence Information" area, as set out on the CRA's emigrants page.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html
Step 2 — List the property owned on departure
List the property owned on departure. If the total fair market value of all property owned on leaving Canada exceeds the amount in the second table above, complete Form T1161, List of Properties by an Emigrant of Canada.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html
Step 3 — Identify which property is subject to the deemed disposition
Identify which property is actually subject to the deemed disposition. The CRA's dispositions page sets out the property that is and is not treated as disposed of on emigration; work from that list rather than assuming that every Canadian asset, including Alberta real estate, is caught.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Step 4 — Compute and report the deemed disposition
Compute and report the deemed disposition. Complete Form T1243, Deemed Disposition of Property by an Emigrant of Canada, and include the resulting capital gains or losses on Schedule 3, Capital Gains (or Losses), of the return for the year of departure.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Step 5 — Make the deferral election
Make the deferral election. Complete Form T1244, Election, under Subsection 220(4.5) of the Income Tax Act, to Defer the Payment of Tax on Income Relating to the Deemed Disposition of Property. The CRA states this form is completed by a person who ceased to be a resident of Canada for income tax purposes in the year and is electing to defer payment of tax on income relating to the deemed disposition of a property indicated on Form T1243.https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1244.html
Step 6 — Meet the election deadline
Meet the election deadline in the first table above.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Step 7 — Provide adequate security
Provide adequate security if the federal tax owing on the deemed-disposition income exceeds the threshold in the first table, and be ready to provide security for applicable provincial tax as well.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Step 8 — Settle the form of the security with the CRA
Settle the form of the security with the CRA before relying on it. The emigrant pages read here do not state which kinds of security the CRA accepts and are silent on offering a charge or mortgage over Canadian real estate; the CRA's related non-resident disposition page directs taxpayers and representatives who need information about acceptable security to the Revenue Collections Division of the applicable Tax Services Office.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/disposing-acquiring-certain-canadian-property.html
Step 9 — Pay the deferred tax when property is disposed of
Pay the deferred tax when the property is sold or otherwise disposed of, as the CRA describes in the first table above.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Step 10 — Consider unwind election on returning to Canada
If the client later re-establishes Canadian residency, consider the election to unwind the earlier deemed disposition, made in writing by the deadline in the first table and including a list of the properties owned and the fair market value of each property the election applies to; the CRA states some or all of the security provided may be returned.https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
When an individual ceases to be a resident of Canada, the CRA treats certain property as sold at fair market value and immediately reacquired, and the resulting capital gain is commonly called departure tax. An individual who does not want to pay that tax in the year of departure can elect under subsection 220(4.5) of the Income Tax Act, on Form T1244, to defer payment until the property is actually sold or otherwise disposed of; above the federal tax amount in the table below, the election must be backed by adequate security acceptable to the CRA. This Guide covers the election and the security requirement for a person who emigrated from Alberta, for the return covering the year of departure. Figures are for tax year 2026, except that the CRA pages read here are written for the 2025 return year; the amounts below are quoted exactly as those pages state them, and where a year is attached to a statement it is the CRA page's own year (2025).
Individuals who ceased to be a resident of Canada for income tax purposes while living in Alberta, who have reported a deemed disposition of property on Form T1243, and who want to defer payment of the tax on that deemed-disposition income rather than pay it with the return for the year of emigration. The CRA states that the election can be made regardless of the amount of tax involved, and that the deferred tax is paid later, without interest, when the property is sold or otherwise disposed of. It is not for the deemed disposition of an employee benefit plan, which the CRA states the election does not apply to. It is not for corporations or trusts, and it does not decide whether the person is in fact a non-resident.
Rates, thresholds and deadlines — dispositions of property page (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html |
| Amount of departure tax that may be deferred by election | "regardless of the amount" | The CRA states you can elect to defer the payment of tax on income relating to the deemed disposition of property (departure tax), regardless of the amount |
| Interest charged on the deferred tax | "without interest" | You would then pay the tax later, without interest, when you sell (or otherwise dispose of) the property |
| Deadline to make the T1244 election | April 30 of the year after you emigrate from Canada | "You must make this election by April 30 of the year after you emigrate from Canada" |
| Federal tax owing on deemed-disposition income above which security is required | more than $16,500 | If you make this election and the amount of federal tax owing on income from the deemed disposition of property is more than this amount, you have to provide adequate security to cover the amount |
| Same threshold for former residents of Quebec | more than $13,777.50 | The CRA states the Quebec figure in brackets alongside the federal figure |
| Provincial or territorial tax | security may also be required | "You may also be required to provide security to cover any applicable provincial or territorial tax payable" |
| Deadline for the election to unwind a previous deemed disposition on returning to Canada | on or before your filing due date for the year that you re-establish Canadian residency for income tax purposes | Request must be sent in writing; some or all of the security previously provided may be returned to you |
| Acceptable types of security (for example a charge or mortgage on Alberta real estate) | not stated on this page | The page requires "adequate security" but does not list the forms of security the CRA will accept, and does not mention pledging real property |
Rates, thresholds and deadlines — emigrants page (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html |
| Total FMV of property owned on leaving Canada above which Form T1161 is required | more than $25,000 | "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" |
Rates, thresholds and deadlines — disposing/acquiring Canadian property page (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/disposing-acquiring-certain-canadian-property.html)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/disposing-acquiring-certain-canadian-property.html |
| Where to get information on acceptable security | contact the Revenue Collections Division of the applicable Tax Services Office | The CRA states that as an alternative to the immediate payment of tax it may accept adequate security as an interim arrangement, and directs anyone needing more information about acceptable security to that division; this wording appears on the CRA's page about dispositions of Canadian property by non-residents, not on the emigrant election page |
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