Renting my primary residence in Canada as a cdn non-resident

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ruib77
Posts: 42
Joined: Sat Jul 14, 2012 10:17 pm

Renting my primary residence in Canada as a cdn non-resident

Post by ruib77 »

I'm thinking about renting my primary residence to someone after I get the TN and become a non-resident. That way I can get some time to see if I really like the new job/ location, and the house can be a great support if things don't go well in US and I need to come back. I know I will be taxed on my capital gain if I decide to sell the house down the road. But is there anything else that I'm missing?

Where do I report my rental income from Cdn property after becoming a cdn non-resident? In US tax return/ Canadian tax return/ both??
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Non-residents MUST have monthly 25% rent withheld and transmitted to CRA. You then report income on a 216 return by itself.
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
ruib77
Posts: 42
Joined: Sat Jul 14, 2012 10:17 pm

Post by ruib77 »

Sorry for my ignorance. 25% of the gross rent will go to CRA, and I will also have to report the income in the US. Is that what you are saying?? Please elaborate.
nelsona
Posts: 18685
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes that is whay I'm saying. You will report teh income in both countries.

There are many threads on rental income, plese browse, and then ask any remaining questions.
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
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

If you read through the threads on this subject you will see that you can made an election to pay the 25% on the net rental income also and file the 216 return at year end to reconcile.
JG
ruib77
Posts: 42
Joined: Sat Jul 14, 2012 10:17 pm

Post by ruib77 »

Thank you everyone for all the good info!
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