Help with NR6, NR4, Election under section 216

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Robertbob
Posts: 2
Joined: Thu Aug 02, 2007 6:57 pm

Help with NR6, NR4, Election under section 216

Post by Robertbob »

The forum you have provided is amazing. Thank you.

I have been reading your forums on having a rental property in Canada, while working in the states and followed your links to emigrant pdf file posted on CRA website and very good information on your site. After all of this reading I just want to ensure I have everything clear. I understand that I need an "agent" to collect on my behalf rental payments in Canada and they must be a resident of Canada. They must submit an NR4 form, with tax payment, within 15 days of recieving payment. Depending if I have an NR6 form approved, they will either submit a NR4 form with taxes based on gross monthly or net montly income. Every tax year I then must fill out an addition to my tax form "election under section 216.

I hope I have this straight.

My question for you is if I do not have a property management company acting as an agent and don't want to burden the people living in the property, is there any way to still benefit on paying taxes on the net amount of your rental income without submitting the NR4 forms every month. Could one payment be made yearly instead under the section 216 form?

Thank you for your help
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The tax must be withheld monthly and remitted. Failure to do so will be considered late payment of tax.

Now NR6 is completely voluntary. You are quite free to have 25% of gross withheld every month, and then at year end submit all the paperwork on your 216 and get massive refund.

Anone can be the 'agent'. I,ve not heard of any having trouble wuth this aspect.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Robertbob
Posts: 2
Joined: Thu Aug 02, 2007 6:57 pm

Post by Robertbob »

Thank you for such a quick response.

Would you be able to estimate the length of time it takes to get an NR6 approved? I believe I have to have the tax on the gross rent collected until this form is approved?

I have not seen on particular address just for this form, are they sent to the international tax deptartment address.

I guess once this is done, I can wade through the rest of the work for the US taxes in the spring
Post Reply