Hi
We are currently Canadian PRs living in Canada. We own our home. We plan to relocate to the US permanently. If we choose to rent our home in Canada what are the tax implications ( canada as well as US) of doing so?
Thanks!
Tax for house rent
Moderator: Mark T Serbinski CA CPA
If you rent out you home. you must immediately send 25% of the GROSS rent every month to CRA, and then file a 216 return. This is explained in the Emigrant guide and the non-resident section of the CRA website. You can apply to have only 25% of the NET rent be witheld every month.
You must also report the income on your US 1040, and must depreciate. You use the Cdn tax you paid as a credit.
You must also report the income on your US 1040, and must depreciate. You use the Cdn tax you paid as a credit.
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
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loisebond23
- Posts: 1
- Joined: Sat Jun 03, 2017 5:48 am
Re: Tax for house rent
[quote="srini88"]Hi
We are currently Canadian PRs living in Canada. We own our home . We plan to relocate to the US permanently. If we choose to rent our home in Canada what are the tax implications ( canada as well as US) of doing so?
Thanks![/quote]
Hello,
In Canada, there is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying. By the time the estate is settled, the beneficiary should not have to worry about taxes.
We are currently Canadian PRs living in Canada. We own our home . We plan to relocate to the US permanently. If we choose to rent our home in Canada what are the tax implications ( canada as well as US) of doing so?
Thanks![/quote]
Hello,
In Canada, there is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying. By the time the estate is settled, the beneficiary should not have to worry about taxes.
Re: Tax for house rent
[quote="loisebond23"]
, There is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying. By the time the estate is settled, the beneficiary should not have to worry about taxes.[/quote]
Hello,
Thanks for sharing the pose.
Its really helpful for me.
I wonder how the issue of house rent in Germany was handled during the war. Many men who were called to serve in the Wehrmacht suddenly didnt have the income anymore to maintain the living standard back home. What about a striving young single man in his late twenties with a good income just about to embark on a career who had an elegant flat rented in Berlin? Did he have to have his belongings packed by whomever because the soldiers pay didnt pay the rent? What about the 30 year old married director with no family money, but with a wife and two kids and a rented posh 250 sqm house in Darlem, was the family forced to move to a more modest home? Or were the house owners forced to pay their share and lower the rents for the time of war to enable the tenant to return?
http://letzoo.co.uk/private-landlord-pr ... atford.php
, There is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying. By the time the estate is settled, the beneficiary should not have to worry about taxes.[/quote]
Hello,
Thanks for sharing the pose.
Its really helpful for me.
I wonder how the issue of house rent in Germany was handled during the war. Many men who were called to serve in the Wehrmacht suddenly didnt have the income anymore to maintain the living standard back home. What about a striving young single man in his late twenties with a good income just about to embark on a career who had an elegant flat rented in Berlin? Did he have to have his belongings packed by whomever because the soldiers pay didnt pay the rent? What about the 30 year old married director with no family money, but with a wife and two kids and a rented posh 250 sqm house in Darlem, was the family forced to move to a more modest home? Or were the house owners forced to pay their share and lower the rents for the time of war to enable the tenant to return?
http://letzoo.co.uk/private-landlord-pr ... atford.php
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loise1204
Re: Tax for house rent
[quote="srini88"]Hi
We are currently Canadian PRs living in Canada. We own our home. We plan to relocate to the US permanently. If we choose to rent our home in Canada what are the tax implications ( canada as well as US) of doing so?
Thanks![/quote]
Hello,
The tax levied on the average annual income on a rental apartment/property in the country.
Assumptions:
Gross rental income is /US$1,500/month
The property is personally directly owned jointly by husband and wife
Both owners are foreigners and non-residents
They have no other local income
There is no mortgage, i.e., no loan is taken for the purchase
In arriving at the pre-tax profit figure, we calculate, and deduct:
Depreciation / capital allowances if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.
We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical actually incurred costs. If real estate tax is normally payable by the landlord, we deduct that.
We are currently Canadian PRs living in Canada. We own our home. We plan to relocate to the US permanently. If we choose to rent our home in Canada what are the tax implications ( canada as well as US) of doing so?
Thanks![/quote]
Hello,
The tax levied on the average annual income on a rental apartment/property in the country.
Assumptions:
Gross rental income is /US$1,500/month
The property is personally directly owned jointly by husband and wife
Both owners are foreigners and non-residents
They have no other local income
There is no mortgage, i.e., no loan is taken for the purchase
In arriving at the pre-tax profit figure, we calculate, and deduct:
Depreciation / capital allowances if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.
We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical actually incurred costs. If real estate tax is normally payable by the landlord, we deduct that.