Rental withhold tax

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
amd23
Posts: 3
Joined: Tue Jan 14, 2025 7:01 pm

Rental withhold tax

Post by amd23 »

Hello.
I moved to the US last October and started renting out my condo in Toronto in December. Do I need to tell my tenant to withhold and remit a % of the rental price to the CRA ?
I am not sure I am considered a non resident of Canada since I moved less than 183 days ago and haven’t asked the tenant, but I don’t want to have trouble with the CRA, as I understand I will eventually have to report this rental income in the tax return.

Thank you
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Rental withhold tax

Post by nelsona »

You are considered non-resident as soon as you move to the states, so you should be getting ready to file for CRA (a) an emigrant return for 2024 (b) a 216 return for your rental income after October.
Read and follow the following information:
https://www.canada.ca/en/revenue-agency ... t-tax.html
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
amd23
Posts: 3
Joined: Tue Jan 14, 2025 7:01 pm

Re: Rental withhold tax

Post by amd23 »

Thank you for the reply. I didn’t mention, but am I considered a non resident of Canada even if I moved to the US temporarily? I have a TN visa, it’s non immigrant, I would have to go back to Canada if I lose my job or it expires and I can’t renew it
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Rental withhold tax

Post by nelsona »

Your intent, and actions, make you non-resident. You aren't going down on a three-month contract to work for the summer. You've moved and have rented out your place.

Go through the steps you need to take, and then you will be done.
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
amd23
Posts: 3
Joined: Tue Jan 14, 2025 7:01 pm

Re: Rental withhold tax

Post by amd23 »

Got it, thank you!
Post Reply