Newcomers, Immigration & Departure

The first year usually benefits from a transition rule: a newcomer generally doesn't have to file the T1135 foreign-asset report for the first tax year of residency, but from the second year on it's required once specified foreign property exceeds CAD$100,000 in cost. Note that being exempt from reporting isn't the same as being exempt from tax — income from foreign assets counts from the day you become a resident.

Departure tax means that when you stop being a Canadian tax resident, the law treats certain property as sold at market value and computes capital gains on the accrued increase. It targets paper gains rather than actual cash-out; some property (such as Canadian real estate and certain registered accounts) is excluded, and a deferral can be elected where eligible. The actual amount depends on what you hold and how much it has gained, so it's worth modelling before you commit to leaving.

When you become a Canadian tax resident, the cost base of your property is generally set to its market value at that time (a deemed acquisition), which means gains accrued before landing usually stay outside the Canadian tax net. So disposition timing, how assets are held, and the landing date itself directly affect later tax. This planning has to be done before landing — there's limited room to adjust once you've arrived.

Receiving a gift itself generally isn't taxable income in Canada; but if you're a U.S. taxpayer, gifts from one foreign individual aggregating over US$100,000 in a year must be reported to the IRS on Form 3520. That's an information return, not a tax, but failing to file can carry penalties. The source of funds, how they're transferred and your tax status together determine the exact obligation, so confirm before a large transfer.

There can be. A long-term resident who has held a green card for a certain number of years may be treated as expatriating and fall under the exit-tax rules, with worldwide assets measured on a deemed-disposition basis and Form 8854 required. Whether it applies depends on your years of holding, net worth and prior compliance. Understanding these consequences before you formally give it up matters, because the timing of the surrender itself affects the outcome.