Confused about T1243, T1244 and T1161

[peer]

I emigrated from Canada back to the USA early last year (and according to the determination from the CRA, I am not considered a Canadian resident for 2024).

I had a bunch of US-based ETFs that I transferred "in full" from Canada to the USA after leaving, and sold them all in the USA. I figured that would be cheaper, but now it appears it risks double-taxation, once from the "deemed disposition" by Canada, and once from the actual sale in the USA.

UFile is saying I can avoid this by filing T1243, T1244 and T1161. But the tables where I'd expect to list my ETFs on T1243 and T1244 are blank, and I'm supposed to sign T1244. Then for T1161 it does list my ETFs, but for the "FMV on the day I emigrated" it's listing the proceeds from the actual sale in the USA.

I can correct T1161 to show the "FMV on the day I emigrated", but I"m not sure the tables for T1243 and T1244 should be blank? I am reporting the capital gains on the normal capital gains lines in my T1 from the actual disposition in the USA.

[nelsona]

Dispositions made after departing Canada do not absolve you from reporting the deemed disposition of those assets on the day you left canada on the various forms. Ufile may not be handling those quite correctly, but realize that you cannot Netfile your return if you do not live in Canada, so you will file a paper return.
Remember that you are NOT filing a non-resident return if you left in 2024, you are filing a normal return for the province you resided in on your last day in Canada, but with a departure date corresponding with the date you moved. This is known as an Emigrant or departure return.

For US purposes, you will only be taxed on the gains made between your departure date and the date you sold. This by Rev. Proc. 2010-19, which you can research.

[peer]

Thanks Nelson! I wasn't aware of Rev. Proc. 2010-19.

The Rev. Proc. 2010-19 approach looks quite intimidating and I'm not sure that's handled by UFile.

I can manually correct T1243, T1244 and T1161 and list the missing ETFs, with their FMV on the day before I emigrated in 2024.

I'm not sure whether I need to be concerned with the other values UFile has left blank on T1244. I'm not trying to "defer" paying my tax. The ETFs were sold in full a couple months later, also in 2024, so there is no deferral past EOY. Maybe I should include a note that says basically that:

"The deemed disposition rules apply to these assets on XXX 2024. However, to avoid double taxation and to consolidate my Canadian capital gains into the same calendar year, I am electing under subsection 220(4.5) (Form T1244) to defer the departure tax that would otherwise arise on XXX 2024, to the actual sale dates on YYY 2024.

Because those sales occurred in 2024, there is no continuing deferral beyond December 31, 2024. I have already included the capital gains from the actual sales on my 2024 T1 return (Schedule 3)."

Then on the Schedule 3, I would list the actual sale dates, cost basis and proceeds.

[nelsona]

Ufile, and CRA have nothing to to with the Rev Proc. That is strictly dealt with IRS.

Everything you report to CRA is basd on the day you left. If you sold even the next day after you left, you still need to report that you had them, and pay deemed disposition tax based on the day you left. Forget, for the purposes of your return, anything that happened past the day of your departure.
Answer and fill the forms based on that.

If you are not deferring, then you don't need 1244.

[peer]

Okay, that's starting to make sense.

So I won't be double-taxed on the gain for the period up to the departure date. Since that gain is being included in my Canadian taxable income and I'm paying Canadian tax on it. Then on the US side, that should be taken into account for the FTC.

But any gain after the departure date would be double-taxed, unless I use Rev. Proc. 2010-19.

[nelsona]

For US a gain only occurs upon sale. If you sold nothing before departure, there is no gain in US.
If you sold something earlier in the year, before your departure date, AND you are filing a full year 1040, then yes, FTC will be the way to go.
The gains ON SALES that occur after departure will be taken care of by the Rev Proc.