Archives: Answers

Answer

Where should I mail the documents to CRA? To fix residency issues?

Hi Michael, Thank you for your detailed message. Since you left Canada in May 2021 and continued filing tax returns as a resident through 2024, you’ll need to take corrective steps to update your residency status with the CRA. ✅ Required First Step – File Form NR73 To adjust your residency status on tax returns … Continue reading Where should I mail the documents to CRA? To fix residency issues?

Wrongly claimed OEPTC for 5 years. How do I fix this now? (Related to Ontario Trillium Benefits)

Hi Orfi, Thank you for your message. You’re correct that to be eligible for the Ontario Energy and Property Tax Credit (OEPTC), you must have paid property tax on a principal residence that you own or rent. Since you lived in your parents’ home and did not own the property, you were unfortunately not eligible … Continue reading Wrongly claimed OEPTC for 5 years. How do I fix this now? (Related to Ontario Trillium Benefits)

Left Canada in May 2021 – Did not file a Departure date and Emigrant return. How do I rectify this now?

Hi Michael, Thank you for your detailed message and for outlining your situation clearly. You are correct that your Canadian tax filings from 2021 onward do not reflect your non-resident status, and we can help you resolve this. ✅ Summary of Your Situation You left Canada in May 2021 and have been living abroad since, … Continue reading Left Canada in May 2021 – Did not file a Departure date and Emigrant return. How do I rectify this now?

Tax and Contracting Considerations for US Citizen Living in Canada, Working for US Company

Hi Freddy, Thank you for your message and the clear summary of your situation. As a U.S. citizen and Canadian tax resident working remotely for a U.S. company, transitioning from W-2 employment to 1099 contracting introduces several cross-border tax and compliance complexities. Below are answers to your questions, and I’d be happy to walk you … Continue reading Tax and Contracting Considerations for US Citizen Living in Canada, Working for US Company

RRSP Withdrawal

Dear Joanne, Thank you for reaching out, and I’m very sorry to hear about your sister’s situation. I know this is a difficult time, and I appreciate you taking the steps to understand her financial options clearly. Regarding your question: When your sister passes away, her RRSP will be fully taxed as income on her … Continue reading RRSP Withdrawal

Non Resident of Canada. Savings Bank Account in Canada. Do I have to keep on filing a tax return in Canada?

Hi Shahid, Thank you for your message. Since you have already filed a departure (emigrant) return and are now a confirmed non-resident of Canada for tax purposes, your filing obligations are quite limited. As a non-resident, interest income from a Canadian regular savings account is generally exempt from Canadian withholding tax, provided it meets the … Continue reading Non Resident of Canada. Savings Bank Account in Canada. Do I have to keep on filing a tax return in Canada?

Non Resident but Citizen of Canada Selling house in Canada after leaving canada.

Hi Alex, Thank you for your message and detailed background. Since you became a non-resident of Canada in January 2024 and plan to sell your former principal residence in May 2025, here is how the Canadian tax rules will apply: 1. Principal Residence Exemption (PRE) As you lived in the home from 2005 until your … Continue reading Non Resident but Citizen of Canada Selling house in Canada after leaving canada.

approximate cost of filing for non resident status- Canada

Dear Robert, Thank you for reaching out, and congratulations on your retirement. We’d be happy to assist you with filing for non-residency status with the Canada Revenue Agency (CRA). This process involves a detailed review of your residential ties, completion of Form NR73 (Determination of Residency Status), and preparing a departure return to report your … Continue reading approximate cost of filing for non resident status- Canada

GIS stopped by me. But CRA reassessed NOA says GIS paid!

Hi Orfi, Thank you for your detailed message. I understand your concern, and you’ve done a great job gathering the necessary documentation. Here’s a summary of the situation and what you can do: 1.CRA’s Automatic Reassessment: The CRA reassessed your 2022 return and added $8,100 in net federal supplements (GIS), likely based on incorrect or … Continue reading GIS stopped by me. But CRA reassessed NOA says GIS paid!

Any benefit or requirement to file a T1?

Hi SJ, Thank you for your question regarding the Canadian T1 return and your current situation as a non-resident living in Japan since 2020. As a non-resident of Canada, you are only required to file a T1 return if you have Canadian-source income that is subject to Canadian tax—such as rental income, employment income earned … Continue reading Any benefit or requirement to file a T1?

Foreign Property (House) Sold by Canadian Resident – Capital Gains Tax?

Hi Karen, Thank you for your question. Yes, as a Canadian resident, you may designate a foreign property (such as an overseas apartment) as your principal residence for a given year, provided it was ordinarily inhabited by you or a family member during that time. This holds true even if the property is outside of … Continue reading Foreign Property (House) Sold by Canadian Resident – Capital Gains Tax?

NR73 Form, Cover letter and T1-Adustment Form. Can you upload it on My CRA Account or Do you have to mail it in?

Hi Sajid, Thank you for your message. You’re correct that CRA’s Change My Return and ReFILE services do not allow changes to the departure date from Canada. Since you need to correct your residency status retroactively from 2021, here’s how you should proceed: 1.Submission Method: Unfortunately, the NR73 form and T1 Adjustment with a departure … Continue reading NR73 Form, Cover letter and T1-Adustment Form. Can you upload it on My CRA Account or Do you have to mail it in?

Parents and I have Joint Savings bank accounts + Single accounts. Lot of internal transfers amongst each account.

Dear Caroline, Thank you for your detailed message. You’re not alone—many families with joint and interlinked finances face this kind of complexity over time. The CRA’s main concern in these situations is that interest income is reported accurately based on actual ownership or contribution to the funds, in line with attribution rules. If interest from … Continue reading Parents and I have Joint Savings bank accounts + Single accounts. Lot of internal transfers amongst each account.

Capital Gains Tax on Property Sold Abroad & Money brought into Canada. Almost 25 years back!

Dear Jaffer, Thank you for your detailed message. I appreciate the background you’ve provided regarding your parents’ foreign property and the related sale. Based on the information you’ve shared, here’s a summary and my professional insight: Summary of Your Situation Your parents immigrated to Canada in 1998 and left behind a personal-use property abroad (not … Continue reading Capital Gains Tax on Property Sold Abroad & Money brought into Canada. Almost 25 years back!

Hello, i have owned my residence for 25 years, in 2019 my friend and i purchased a property, it has been vacant – we have done many renovations – we are looking at options now- we dont love the home therefore we are thinking on selling it – any advice you can provide is helpful.

Hi Cindy, Thank you for reaching out and sharing the details of your situation. It sounds like you’ve done a lot of work on the property since purchasing it in 2019, and I understand that you’re now considering selling it. Since the property has not been lived in, there are a few important tax considerations … Continue reading Hello, i have owned my residence for 25 years, in 2019 my friend and i purchased a property, it has been vacant – we have done many renovations – we are looking at options now- we dont love the home therefore we are thinking on selling it – any advice you can provide is helpful.

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