How & When to pay departure tax once u leave Canada

[redBlue 1]

I was wondering when we are supposed to pay "departure tax" once we leave Canada and become a "non-resident"?Is it something we do the next tax year in US or while we are in Canada?

[Flames9_RN 358]

When u file ur Cdn 2010 taxes, there is a place on the front page of the tax forms that states something along the lines of when you ceased to be a resident of Canada, jot down the POE date there. If your using a computer program, it will do the calculations for you. You may or may not have to pay any $$$

[Bern. 3]

Wait...so if you left Canada in 2009, you pay the departure tax on your 2010 taxes? >_>

[Rhiannercakes 14]

My parents did my taxes and never brought it up. I wonder if I didn't have to pay any then.

[Krikit 1,164]

There's a departure tax??

[Bern. 3]

They love us so much, that they don't want us to leave....so they make it hard for us LOL?

[ashenflowers 5]

WHUT? Like paying back my well earned GST, and getting pounded on 25% tax on my already-delayed EI isn't bad enough?

[OBX 51]

I'm not aware of any specific departure tax per se. As flames posted you just check off the date of your departure from Canada on your return so they can pro-rate any deductions and/or benefits.

The only "extra" taxes I had to pay was on my investment account that had to be transferred to a US account (on paper at least.) So it was as if I sold everything and then bough it back in the US paying taxes on any gains. Sucks that the market dropped but at least that left me with little gains to pay taxes on. I have already received my refund so I am assuming my accountant filed correctly.

[Bern. 3]

I believe I will go back to Canada next April, and do my taxes...and just be like, YEAH. I STILL LIVE HERE. OHOHOHOH. I don't know if that's legal though, xD

[Krikit 1,164]

The only "extra" taxes I had to pay was on my investment account that had to be transferred to a US account (on paper at least.)

Why did you have to transfer your investments to a US account?

[SupportGeek 21]

I read over the materials for emigrants, the only tax you pay is whatever your income taxes would be for the year you left till the day you were classified as non resident.

In the case of CR1 its the day you do PoE

[redBlue 1]

I'm not aware of any specific departure tax per se. As flames posted you just check off the date of your departure from Canada on your return so they can pro-rate any deductions and/or benefits.

The only "extra" taxes I had to pay was on my investment account that had to be transferred to a US account (on paper at least.) So it was as if I sold everything and then bough it back in the US paying taxes on any gains. Sucks that the market dropped but at least that left me with little gains to pay taxes on. I have already received my refund so I am assuming my accountant filed correctly.

Are you saying that although you've paied some taxes on your investment as if they were sold ,you were able to get the money back from CRA.If so,were you able to get the full amount?Thnx

[OBX 51]

Why did you have to transfer your investments to a US account?

This was all from my accountant and financial advisor....RSP could stay in Canada but my brokerage account had to be transferred to a US broker. So I had to make a deemed disposition of the account and pay taxes on any capital gains. But as I posted above it was such a bad year I had more losses than gains so it came out okay.

Are you saying that although you've paied some taxes on your investment as if they were sold ,you were able to get the money back from CRA.If so,were you able to get the full amount?Thnx

I had to report the deemed disposition of my non-RSP account which in effect was selling all my holdings ..on paper only... so I had to report any capital gains but as noted above it came out more on the "loss" side so I was okay. If I had more capital gains than losses I would have had to pay tax on that and no they would not refund me that...my refund was based on the final calculation of my taxes. I usually get a refund due to overpayment of tax from my salary and maxing out my RSP contribution.

Clear as mud right!

[redBlue 1]

This was all from my accountant and financial advisor....RSP could stay in Canada but my brokerage account had to be transferred to a US broker. So I had to make a deemed disposition of the account and pay taxes on any capital gains. But as I posted above it was such a bad year I had more losses than gains so it came out okay.

I had to report the deemed disposition of my non-RSP account which in effect was selling all my holdings ..on paper only... so I had to report any capital gains but as noted above it came out more on the "loss" side so I was okay. If I had more capital gains than losses I would have had to pay tax on that and no they would not refund me that...my refund was based on the final calculation of my taxes. I usually get a refund due to overpayment of tax from my salary and maxing out my RSP contribution.

Clear as mud right!

thnx for the clarification.Thats what I have to do next.I'm also transfering my brokerage account to a US firm and I'll see how much tax I'll pay.Would u mind if I ask which brokerage firm did u deal with on both sides?I'm with Scotia-itrade and planning to do go to E-trade....thnx

[Udella&Wiz 325]

To answer someone above....CRA makes the final decision on whether you're deemed a resident in the year you left. I left relatively clsoe to the end of the tax year in 2007 so I still paid my taxes as if a resident (CRA deemed me a resident) and then the NEXT year, 2008, was when I filed the departure return. That year I had just EI taxed at the fabulous 25%