A move abroad should trigger a tax-residency review before accounts and records become harder to access. A flight out of Canada does not automatically end Canadian tax residency, especially where important residential ties remain.
Start with the facts of the move, then prepare the records needed for the resulting tax treatment.
Document the residency change
Record the new home, Canadian home arrangements, spouse and dependant locations, travel dates and ties in each country. A treaty may affect the conclusion if both countries consider you resident.
The CRA's residency guidance and NR73 opinion process can help with uncertainty. Keep the analysis and effective date together; an address update alone does not establish non-resident status.
Save cost and market-value records
Ceasing residency can trigger a deemed sale of certain property at fair market value even when no actual sale takes place. Exceptions apply, and departure reporting can involve forms separate from the ordinary income lines.
Prepare an asset inventory with ownership, original or adjusted tax cost, value at the relevant departure date and supporting statements. Include foreign assets as well as Canadian investments. Registered plans, real estate and other property categories should be reviewed separately rather than applying one rule to everything.
A screenshot of the total portfolio balance is not enough to calculate each holding's gain or identify an excluded asset.
Separate income periods and notify payers
World income generally belongs in the resident portion of the departure year. After becoming non-resident, Canadian-source income can remain subject to withholding or other filing rules. Tell Canadian financial institutions and payers about the change when required so they can apply the appropriate treatment.
Review benefits and automatic registered-account contributions too. Keeping a TFSA open does not make new non-resident contributions tax-free.
Before leaving, preserve secure access to statements, prior returns and CRA correspondence. A dated departure file makes the later return and any ongoing Canadian obligations much easier to establish.
