2015 Departure return & rental property

tigerjk · Post by **tigerjk** » Thu Mar 10, 2016 1:42 pm

Hi, having left Canada in 2015 to work in the US with a departure date in November, I am filing a departure return for my Canadian sourced income and US income.

I also have a rental property that I received rental income from for the month of December.

Do I need to file a separate return for the rental income just for December as a non-resident? I believe this is called the Non-Resident S.216 return.

nelsona · Post by **nelsona** » Thu Mar 10, 2016 3:51 pm

Yes. You also need to have set up your 25% withholding from the rent that is sent directly to CRA monthly.

Any particular reason that your Cdn return would include US income? Most departures coincide with work start date.

nelsona · Post by **nelsona** » Thu Mar 10, 2016 3:52 pm

If you left to work in August, it would be unusual for your departure date to be November.

tigerjk · Post by **tigerjk** » Thu Mar 10, 2016 4:26 pm

Thanks, nelsona.

My wife stayed back until November so I was told by CRA that her departure date is indeed mine as well for the return.

nelsona · Post by **nelsona** » Thu Mar 10, 2016 4:35 pm

That is not necessarily so. if you did not visit her regularly from aug to November, you are considered non-resident from the time you moved, by treaty. It is not required that spouse's will have the same departure date.

Calling CRA will almost always yoield incorrect answers, especially when treaty issues are involved.
If the tax burden added to your Cdn return for your US income is excesive, I would simply opt for an august departure date.

tigerjk · Post by **tigerjk** » Thu Mar 10, 2016 4:43 pm

Interesting. The US income is definitely adding a tax burden on me (especially with the exchange rate these days..) so I'll have to explore your suggestion as well then. Thanks!

tigerjk · Post by **tigerjk** » Mon Mar 14, 2016 3:29 pm

Are there any US tax obligations fir this rent income if I'm filing a 1040NR for my time in the US?

nelsona · Post by **nelsona** » Mon Mar 14, 2016 4:12 pm

Not for 2015.

nelsona · Post by **nelsona** » Mon Mar 14, 2016 4:13 pm

For Canada, of course the flat 25% tax applies, paid monthly, and then 216 return filed.