NR4 for Rental Property

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toad
Posts: 64
Joined: Sun Nov 28, 2010 8:28 pm

NR4 for Rental Property

Post by toad »

Hi,

I just got a call from the CRA asking for my NR4 for my Canadian rental income and with-hoidings for 2011. I don't have one. I didn't have an agent and I sent the withholdings in each month myself. They didn't ask for an NR4 last year (2010 taxes), and my Section 216 was processed just fine.... I just looked at the NR4 filing requirements, and If in fact I am supposed to file and be the recipient of the NR4, I am way late and subject to penalties. Is this the case, or should the CRA have sent me an NR4?

Thanks
nelsona
Posts: 18676
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You (your agent) is to produce the NR4.
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
Nishant
Posts: 78
Joined: Sun Sep 06, 2009 10:15 am

Post by Nishant »

When I left Canada, I give below what I did for my rental property taxes.

1) Within 45 days of leaving Canada, I called CRA Non resident office to set up a non resident account for rental tax payment. This avoided late penalty.

2) I paid 25 % of gross rental income as tax. At the end of the year, CRA sent me "Proforma NR4" giving gross tax paid.

3) With 216 return and CCA applied with zero rental net income, I got full refund for that year with above NR4.

4) From next year and every year, I apply in Oct. to CRA for NR6 with a relative identified as my Canadian agent. This allows me to pay only 25 % tax on net income.

Hope this may help.
Nishant
Posts: 78
Joined: Sun Sep 06, 2009 10:15 am

Post by Nishant »

Please ignore the word property in my earlier response.
nelsona
Posts: 18676
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

... your agent still needs to prepare an NR4
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
toad
Posts: 64
Joined: Sun Nov 28, 2010 8:28 pm

Post by toad »

FYI Everyone - I sent CRA a letter to obtain a Pro Forma NR4. They sent one to me after a few months. Here is a template: trowbridge.ca/2010-proforma-nr4-slip-request.doc
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