Leaving Canada – Tax Implications and Departure Tax

When a Canadian taxpayer ceases to be a resident of Canada, he is deemed to have disposed of each property owned by him at fair market value. He is then deemed to have reacquired his property at fair market value.  In other words, the taxpayer potentially owes « departure tax », usually taxes on capital gains.  There are, however, many exclusions and ways to mitigate the effect of this rule.

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