Departure tax- getting my details in order
Jun 7th 2021, 4:56 pm
#1
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Thread Starter
Joined: Apr 2015
Posts: 30
Departure tax- getting my details in order
Hi, I am organizing to leave Canada in 2022. My husband may leave slightly earlier or later than me, not sure at this point. I will be returning to the UK to retire, where I have my home .
I am trying to understand the T1161 departure form, and if I need to declare, which I don't think I need to do, as although i have property in the UK, and owned before i moved to Canada in 2018, I fall under the " less than 60 months in 120 months rule".
I can ignore the cash element, I can ignore the rrsp element, ( I have both of those but it can be ignored- according to the form) but I don't understand the personal property section, is that all my 2nd hand clothes i brought, and will send back, the tv i bought here and will send back, , my mattress etc , my wedding ring and $200 watch? do I add all those personal items up , that will be shipped back, and if they are under $10000, at value on the day I emigrate, I am ok, if over $10k , I add them to the form? Car at a capital loss will be sold before we leave Canadian shores. Or is the personal possessions section just mean big stuff like fine art, jewelry etc that can in theory make a capital gain?
And if i have nothing to declare, how do I acknowledge that? include the form but nothing on it?
Also, a side note, this is our 2nd stint in Canada, I left in 2013, we moved back to the UK , and we filed taxes for 2013 , with the CRA when we moved back to the uk . Ignorance is not a clever answer, but I wasn't aware of the departure tax, or T1161, at that time in 2013, but when I look back, I sold a Canadian house then( but lost money on it, and also before we left Canada) we did have rrsp, and cash, but i didn't declare any personal possessions, through my ignorance.- but now I know !
Also another side note, i bought the house in the uk, in 2014, being my primary residence( now I rent it out while we are away) and have fully declared on t1135 my rental income to the CRA since being here in 2018 onwards.
After I leave Canada, I want to then claim as a non resident of Canada, so because it will be a split year, ie 2022, i will live in Canada until April, then move back to Uk and declare residency in the Uk. I believe i file an ordinary tax return ( say under turbo tax) for the months I was in Canada. Then i ask to be declared non resident, and ask HMRC to send a letter certifying that, . Then I think CRA have told me I need to file a paper form as non resident?
Another side note.. My husband has been in Canada more than the " 60 months in 120 months rule" but the property is not in his name, only mine. so I figure he only has the personal possessions issue to deal with, and some scabby RBS shares that he holds in the uk, they lost great capital amount after the crash of 2008, and worth diddly squat now, but its still a good idea to delcare them? Yes he has cash and yes he has rrsp-, but he doesn,t need to delcare them under the T1161...
Wow sorry this is long winded
I am trying to understand the T1161 departure form, and if I need to declare, which I don't think I need to do, as although i have property in the UK, and owned before i moved to Canada in 2018, I fall under the " less than 60 months in 120 months rule".
I can ignore the cash element, I can ignore the rrsp element, ( I have both of those but it can be ignored- according to the form) but I don't understand the personal property section, is that all my 2nd hand clothes i brought, and will send back, the tv i bought here and will send back, , my mattress etc , my wedding ring and $200 watch? do I add all those personal items up , that will be shipped back, and if they are under $10000, at value on the day I emigrate, I am ok, if over $10k , I add them to the form? Car at a capital loss will be sold before we leave Canadian shores. Or is the personal possessions section just mean big stuff like fine art, jewelry etc that can in theory make a capital gain?
And if i have nothing to declare, how do I acknowledge that? include the form but nothing on it?
Also, a side note, this is our 2nd stint in Canada, I left in 2013, we moved back to the UK , and we filed taxes for 2013 , with the CRA when we moved back to the uk . Ignorance is not a clever answer, but I wasn't aware of the departure tax, or T1161, at that time in 2013, but when I look back, I sold a Canadian house then( but lost money on it, and also before we left Canada) we did have rrsp, and cash, but i didn't declare any personal possessions, through my ignorance.- but now I know !
Also another side note, i bought the house in the uk, in 2014, being my primary residence( now I rent it out while we are away) and have fully declared on t1135 my rental income to the CRA since being here in 2018 onwards.
After I leave Canada, I want to then claim as a non resident of Canada, so because it will be a split year, ie 2022, i will live in Canada until April, then move back to Uk and declare residency in the Uk. I believe i file an ordinary tax return ( say under turbo tax) for the months I was in Canada. Then i ask to be declared non resident, and ask HMRC to send a letter certifying that, . Then I think CRA have told me I need to file a paper form as non resident?
Another side note.. My husband has been in Canada more than the " 60 months in 120 months rule" but the property is not in his name, only mine. so I figure he only has the personal possessions issue to deal with, and some scabby RBS shares that he holds in the uk, they lost great capital amount after the crash of 2008, and worth diddly squat now, but its still a good idea to delcare them? Yes he has cash and yes he has rrsp-, but he doesn,t need to delcare them under the T1161...
Wow sorry this is long winded
Jun 8th 2021, 3:43 pm
#2
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Departure tax- getting my details in order
Lots of very useful info can be found on the official link 
Are you PR's or Citizens of Canada?
https://www.canada.ca/en/revenue-age...emigrants.html
Are you PR's or Citizens of Canada?https://www.canada.ca/en/revenue-age...emigrants.html
Leaving Canada (emigrants)
Topics
- Are you an emigrant?
When do you become a non-resident. - Do you have to file a tax return?
Which forms book and guide to use, when and where to send your return. - Departure tax
You may have to report a capital gain when you leave Canada. - How to complete your tax return
- Date of departure from Canada
- Information about your spouse or common-law partner
- What income do you have to report?
Income to report for the part of the year you were a resident of Canada and for the part of the year you were not a resident of Canada - What deductions can you claim?
- What credits can you claim?
Non-refundable tax credits, overpayment of CPP or QPP, and refundable tax credits - Which forms to use to calculate your tax and credits
- After you leave Canada
Electing under section 217 of the Income Tax Act and income received from Canada, TFSA, HBP, LLP, GST/HST, and CCB.
Last edited by Siouxie; Jun 8th 2021 at 3:46 pm.
Jun 9th 2021, 2:10 pm
#3
Forum Regular
Thread Starter
Joined: Apr 2015
Posts: 30
Re: Departure tax- getting my details in order
Dear Siouxie,
I am so glad you replied, i was hoping you would do.
Yes we are Canadian citizens. 2 passports, UK and Canada.
I have looked at the links you sent to me, and I re read them, but i still can't seem understand the personal possessions section. all my old 2nd hand clothes and 2nd hand tv being sent back... or my valuable fine art collection and coins! ( No I don't really have the latter. only the former!
I am so glad you replied, i was hoping you would do.
Yes we are Canadian citizens. 2 passports, UK and Canada.
I have looked at the links you sent to me, and I re read them, but i still can't seem understand the personal possessions section. all my old 2nd hand clothes and 2nd hand tv being sent back... or my valuable fine art collection and coins! ( No I don't really have the latter. only the former!
