Can exclude OAS/CPP payments from reporting?

[SergeP]

After 2 years being an US tax resident, I am going to sell my Canadian home. I will need to pay a Canadian tax on any capital gain from this sale. Because the home prices in my area stayed flat for the last two years, I will not have any capital gain. My understanding is that anyway I must file T1 return under Section 217 in 2025 (even though there is no capital gain from this sale). There are a few questions:
1. When filing under Section 217, it seems I have to also report my other Canadian income ( CPP, OAS and RIF). For RIF I am paying 15% tax on withdrawals. CPP and OAS are not taxed for non-residents of Canada. However including them in this T1 results in a significant Canadian tax on these payments. Does it sound correct considering that they should not be taxed at all?
2. On my NR4(OAS) form there is an exemption code “T” in the box 18. This code means that these payments are not taxed in Canada. Therefore, may be I can exclude them from reporting on the Section 217 T1?
3. According to the US/Canada tax treaty, US tax-residents should have a 15% tax on the periodic RIF payments. And I can claim it on my US return as FTC. Can I claim as FTC the actual tax that I will pay when filing the Section 217 T1 (which is more than 15%)?

[nelsona]

Serge
First off, you are not using 217 if you have cap gains. 217 is only for pension income and only if it reduces your tax on those specific items.

So just file a NR return, reporting the gain. Nothing else needs reporting.

[SergeP]

Thank you very much. It sounds that if I do not have any capital gain I may not need to file the Canadian return at all.

[nelsona]

You do need to report the sale, because you were non-resident. Did you follow all the non-resident rules for Cdn property sale? Otherwise expect a penalty.

[SergeP]

No, I have not sold the property yet. Just investigating what should be done next year.

[nelsona]

So be sure to follow the steps required for a non-resident. Your Cdn broker may not be up to speed on that and may think that since you are Cdn, you don;t need to follow those rules.

Here is an example:

https://www.crowe.com/ca/crowemackay/in ... -in-canada
https://www.canada.ca/en/revenue-agency ... perty.html