Learn the tax implications of non-residents selling or renting Canadian real estate.
When it comes to the rental of Canadian real estate by non-residents, there are ways to reduce your tax obligations. Non-residents who rent Canadian real estate can reduce the Canadian tax that must be paid on their rental income by filing Form NR6 (to reduce the tax which must be remitted during the year) and a Canadian income tax return (to reduce the ultimate tax liability for the entire year). An Unbordered cross-border tax specialist can prepare these filings for you.
We can also assist in obtaining or filing Form NR4. Form NR4 must be filed by the Canadian agent managing the rental of the property. If there is no Canadian agent (the property is managed by the non-resident owner), the non-resident owner must write to the Canada Revenue Agency to request that the CRA issue the NR4 slip. We can assist in obtaining the NR4 by whichever method is appropriate.
We can provide services related to the sale of Canadian real estate by non-residents. If a non-resident of Canada sells Canadian real estate, the non-resident must file Form T2062 (and possibly Form T2062A) with the Canada Revenue Agency within 10 days of the sale’s closing date; we can prepare and submit this form.
We provide basic bookkeeping services with respect to rental properties, compiling a simple income statement for use in tax return preparation. We also assist in distinguishing capital expenditures from expenses and in setting up capital assets for depreciation.
Contact us to learn more about our services related to the sale or rental of Canadian real estate by non-residents.