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When you become a Canadian resident, your property is treated as bought at its fair market value that day, which sets your starting cost. When you leave, most property is treated as sold at market value, and the gain is taxed. The CRA pages do not name crypto, so confirm how they apply.
What cost base do newcomers use for crypto?
The CRA page for newcomers says you are treated as having sold certain property you owned and immediately bought it back at its fair market value on the day you became a resident of Canada. Your cost is that value. The page names shares, jewellery, paintings and collections as examples and does not name crypto, but coins are property, so the same reading is the natural one. We have not found a CRA page that says it for crypto in so many words.
The CRA says fair market value is usually the highest dollar value you could get for the property in a normal business transaction, and it asks you to keep a record of that value on your arrival date. For coins, the CRA valuing page describes a reasonable method that you use consistently, so use that method for the arrival day.
A made up example, computed in a script. You bought coins abroad for the equivalent of $12,000 and they were worth $30,000 on the day you arrived. Later you sell them for $36,000. Your gain for Canadian tax is $36,000 minus $30,000, which is $6,000. The $18,000 of growth before you arrived is not taxed in Canada. Using the original $12,000 would show $24,000, which is too high.
Does a new resident report past gains?
Not for the growth that happened before you were a resident. The deemed acquisition at fair market value is what separates the earlier growth from the later one. You do not report a gain on the arrival day, because the deemed sale and reacquisition happen at the same value in practice, so the cost resets without a new gain.
What matters is proof. Gather the price of each coin on your arrival date, the units you held and where they were stored. Our page on crypto adjusted cost base shows how a cost per coin then moves with each purchase and sale. If you were already filing in Canada under a different status, such as a non-resident with Canadian income, see our page on non-residents in Canada.
What is the departure tax on crypto?
The CRA page on dispositions of property for emigrants says that when you cease to be a resident you are treated as having sold most of your property at fair market value on departure, then immediately reacquired it for the same amount. Any resulting gain is taxed on your departure year return. The page lists exceptions, including Canadian real property, registered plans such as RRSPs and TFSAs, and property you owned when you last became resident if you were resident for 60 months or less in the prior 10 years. It does not mention crypto, and we have not found a CRA page that does, so confirm how the rule applies to your coins.
Here is a made up example, computed in a script.
| Step | Amount |
|---|---|
| Cost of the coins | $20,000 |
| Fair market value on departure date | $65,000 |
| Deemed capital gain (value minus cost) | $45,000 |
| Taxable half, if capital in nature | $22,500 |
| New cost for later sale | $65,000 |
| Later sale price | $80,000 |
| Gain on that later sale | $15,000 |
The deemed gain of $45,000 goes on Schedule 3 of the departure year return, with half of it, $22,500, added to income if it is a capital gain. The tax rate depends on your income and province and is not computed here. Your new cost is $65,000, so a later sale at $80,000 leaves a gain of $15,000. That later gain may be taxed by the country where you live and not by Canada, which is where tax treaties come in. Our hub on crypto tax in Canada covers the ordinary gain rules.
Is there a deferral or security option?
Yes. The CRA says you can elect on Form T1244 to defer the departure tax, without interest, until you dispose of the property. The election is due by April 30 of the year after you emigrate. If the federal tax owing is more than $16,500, or $13,777.50 for former Quebec residents, you must provide security, and the CRA says to contact it before April 30 to arrange it.
If you move back and still own the property, the CRA says you may be able to unwind the deemed disposition by written request, filed by the filing due date for the year you return. Any tax you deferred may become payable when you become resident again. Because the sums can be large, this is a point to settle with the CRA or a qualified professional before you leave. The CRA page on dispositions of property for emigrants has the details.
Which forms apply?
Three CRA forms come up for a departure.
- Form T1243, Deemed Disposition of Property by an Emigrant of Canada, is used to calculate the gains or losses. The amounts go on Schedule 3.
- Form T1161, List of Properties by an Emigrant of Canada, is required if the total fair market value of your property was more than $25,000 when you left. It lists property inside and outside Canada, and cash and registered plans are excluded. The CRA says personal-use property worth under $10,000 is excluded as well. The late filing penalty is $25 a day, with a minimum of $100 and a maximum of $2,500.
- Form T1244 is the election to defer, covered above.
Enter your departure date on page 1 of the return under Residence Information, and see the CRA page for people leaving Canada for the filing due date. If you are not sure whether you have left for tax purposes, the CRA points to Form NR73 and its page on determining residency status. The newcomer side is on the CRA page on completing your return for newcomers.
Does T1135 apply after you arrive?
It can. Form T1135 is about specified foreign property held outside Canada by a Canadian resident, and coins kept on a platform or in a custody account outside Canada may be part of the picture once you are a resident. The CRA newcomer page we read does not mention T1135, and the CRA crypto pages say little about where crypto is held. Our page on crypto and form T1135 sets out what is known and what is not, with the cost threshold. Read it before your first Canadian return.
The reporting rules for crypto platforms are also changing for 2027, which our page on the crypto asset reporting framework explains.
What records do you need when you move?
Think of two snapshots. One is the value of every coin on the day you arrive or leave, in Canadian dollars, with the method you used to find it. The other is the cost and units you held just before that. The CRA books and records page asks for the number of units, the type of coin, the date and time, the Canadian dollar value, the wallet addresses and the starting and ending balance for each wallet each year.
- A price record for each coin on the move date and the source you used.
- Wallet and platform balances on that date, screenshots or exports.
- The cost of each coin before the move.
- Proof of your residence date, such as a lease, a flight or a utility record.
Keep everything for at least six years from the end of the last tax year it relates to. Our page on what to log for the CRA has a sample table.
This page is information only. We do not prepare returns, we do not represent the CRA or any organization, we do not guarantee that the figures fit your case and we are not liable for decisions based on this page. The examples are made up, and residency rules are fact specific.
Frequently asked questions
What is my crypto cost when I become a Canadian resident?
The CRA says property you owned is treated as sold and reacquired at its fair market value on the day you became resident, and that value is your cost. Its page names shares and jewellery, not crypto. Keep a record of each coin value on your arrival date.
Do I pay Canadian tax on crypto gains made before I arrived?
Growth before the arrival date is not taxed in Canada, because your cost resets to the fair market value on that day. Gains after that date are measured from the new cost. Keep proof of the arrival day values for each coin you held.
Does departure tax apply to crypto?
The CRA says most property is treated as sold at fair market value when you leave, with listed exceptions such as registered plans and Canadian real property. Crypto is not mentioned on the pages we read, so confirm the treatment of your coins with the CRA or a professional.
Can I defer departure tax?
Yes. Form T1244 lets you defer the tax without interest until you dispose of the property. It is due by April 30 of the year after you leave. The CRA requires security if the federal tax owing is more than $16,500, or $13,777.50 for former Quebec residents.
What is Form T1161 and do I need it?
It is the List of Properties by an Emigrant of Canada. The CRA says to file it if the total fair market value of your property was more than $25,000 when you left. Cash and registered plans are excluded. The late filing penalty is $25 a day, from $100 up to $2,500.
Where do I report the deemed gain on leaving?
You calculate it on Form T1243 and report the amounts on Schedule 3 of the return for the year you left. Put your departure date on page 1 under Residence Information. The CRA page for emigrants links to the form and the due date.