Non-resident : vacant -> rent

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groobi
Posts: 12
Joined: Thu Jun 23, 2016 9:32 pm

Non-resident : vacant -> rent

Post by groobi »

If a non-resident bought a property in Canada and keep it vacant for a few years and then start renting it out, is there any tax consequences or reporting requirement for CRA? Thanks
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Only when you rent it or sell the property (the cap gains will be fully taxable in Canada)
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
groobi
Posts: 12
Joined: Thu Jun 23, 2016 9:32 pm

Post by groobi »

I understand the rental income must be reported to CRA. I'm worried about whether this situation is treated as change in use. I read that change in use causes a disposition for home owners. Do you have any idea??
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Not for non-residents. It cannot be your principle residence, so no change in use.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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