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How is the departure tax calculated if I put a deposit on a property abroad that is set to be completed after I leave Canada and become a Canadian non tax resident? Otherwise, if I buy a property abroad the year in which I leave Canada, would the departure tax on that property be minimal since the value may not have increased all that much between the time of purchase and the time of departure?
Hi Michele,
1. Deposit on Property Abroad Before Departure
If you put a deposit on a property abroad before leaving Canada but the property completes after you depart, you will not owe departure tax.
2. Buying Property in the Same Year as Departure
If you buy property abroad in the same year you leave Canada, the departure tax will be based on the capital gain between your purchase price and the FMV at your departure date. If the property hasn’t increased in value by then, the departure tax will be minimal.