T1-NR for a Canadian selling Rental Property

[redbeer]

Hi all,

From 2 other posts my understanding is that when NR sells a rental property in Canada, in addition to T2062, T2062A, and a Section 216 return, NR should also file T1 as an NR to report capital gains/loss on the property (Section 116 return?).

Is my understanding correct?

Can anyone clarify:
1. Is T1-NR required because Section 216 only deals with rental income/expense and CCA and not capital gain/loss on the rental property? It appears to me that as I am doing a 216 return in Ufile, I get only capital gain (without any loss accounted for) reflected in line 12700, but nothing seems to happen further with that amount (at least I can't find that the amount is used anywhere to compute tax).

2. If this is all correct, then should only the tax paid resulting from T2062A be reported on Section 216 return and the tax from T2062 goes onto T1? So to get the max possible refund one has to do both of these returns?

Thank you very much.

[nelsona]

Correct. 2 returns. report only the withholding associated with each type of income on the respective returns.

[redbeer]

Thank you very much.

[redbeer]

Thank you very much.

[redbeer]

Thank you very much.