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How do I rectify this with CRA? Death of a non resident parent abroad in 2025. Departure tax not filed when they left in 2022.

Hi Janiscra, Sorry to hear about your loss. Based on what you shared, here’s the usual CRA filing roadmap in this situation (non-resident parent who left Canada in March 2022, passed away abroad in September 2025, and only a Canadian bank account at death): 1) 2022 “departure” return is typically required (T1 departure return). Because … Continue reading How do I rectify this with CRA? Death of a non resident parent abroad in 2025. Departure tax not filed when they left in 2022.

Dividend refund

Hi SNB, Thank you for your question. From an accounting and bookkeeping perspective, the CRA dividend refund (i.e., a refund arising from RDTOH) should generally be treated as an income tax refund to the corporation, not as a reduction (contra) of dividends paid. 1) Do not net against dividends paid Dividends paid are a distribution … Continue reading Dividend refund

Foreign rental apartment when one partner is a resident and the other is not

Hi Greg, Thanks for your question. The key issue here is beneficial ownership, not just whose name is on title. 1) Was the property “yours” for Canadian reporting? For Canadian tax purposes (including T1135 and rental income reporting), CRA generally looks to who truly owns the property economically (benefits/burdens of ownership), for example: Who paid … Continue reading Foreign rental apartment when one partner is a resident and the other is not

Other Income earned T4A

Hi Ms. M, Yes, in most cases you can deduct the costs you incurred to earn the income shown on the T4A, so you’re generally taxed on your net profit (income minus expenses), not the gross amount on the slip. How it’s typically reported: The amount on your T4A is reported as part of your … Continue reading Other Income earned T4A

emigrating to India

Hello Mr. Sundar, Thank you for your message, and congratulations to you and your wife on your upcoming move back to India. Please note the comments below are general information only. Whether you will be considered a non-resident of Canada is based on your overall facts (especially your residential ties), not just one item in … Continue reading emigrating to India

Inheritance of Canadian Property Held by USA Resident, All Beneficiaries are also USA Residents

Hi Jeff, sorry for your loss. A couple of key points to clear up, because the “no filing/no tax unless you sell or rent” answer is often not correct in an estate situation involving Canadian real estate. 1) Canada doesn’t have an “inheritance tax,” but there can be Canadian tax at death When someone dies … Continue reading Inheritance of Canadian Property Held by USA Resident, All Beneficiaries are also USA Residents

Missed foreign income reporting from 2021-2024

Hi Rohith, Based on the facts you’ve outlined, filing T1 adjustments (T1-ADJ) for 2021–2024 is the more appropriate and proportionate approach, rather than using the Voluntary Disclosures Program (VDP). Key considerations: The unreported foreign income amounts are relatively modest. Your foreign holdings were below the $100,000 threshold, so no T1135 exposure. You became a Canadian … Continue reading Missed foreign income reporting from 2021-2024

Establish property Value Before Leaving Canada

Hi Rim, This is a very common situation, and you are right to think about it before selling rather than after. 1. How CRA determines the capital gain When you became a non-resident and began renting the property, there was a deemed disposition at the property’s fair market value (FMV) on the date you became … Continue reading Establish property Value Before Leaving Canada

Non-resident tax implications on life insurance

Hi Kim, my condolences on your loss. From a Canadian tax perspective, a life insurance death benefit is not taxable in Canada, even if you are now a non-resident. Depositing the cheque into a Canadian bank account does not trigger Canadian tax or withholding, and the location where you deposit the funds (Canada vs. U.S.) … Continue reading Non-resident tax implications on life insurance

Gifting share of house

Dear Satinder, Thank you for your question regarding the rental property you own jointly with your daughter. You’re right to review this carefully, as there are tax implications under both options you mentioned. Based on the information you shared: You own 50% of a rental property with your daughter Purchase price was $850,000 Current value … Continue reading Gifting share of house

HST Quarterly instalments

Hi Anthony, Good questions. This situation is very common when sales drop during the year. 1. Do you still need to pay the 4th instalment if you’ve already overpaid? No. If your actual HST net tax for the year will be less than the instalments already paid, you do not need to pay the 4th … Continue reading HST Quarterly instalments

How to delay OAS …if non-resident of Canada….

Hi Luke, Yes, as a non-resident of Canada, you can delay starting Old Age Security (OAS), and in your situation that is often a very sensible planning strategy. A few key points that should help clarify things: No application is required to “delay” OAS OAS only starts once you apply (or if you are auto-enrolled). … Continue reading How to delay OAS …if non-resident of Canada….

TFSA holdings

Hi Natalie, You’re asking the right question well in advance 👍 You’re correct that once you become a U.S. tax resident, a TFSA is not recognized as tax-free by the U.S. From a U.S. perspective: Interest, dividends, and capital gains inside a TFSA are taxable annually The account is not treated as a pension or … Continue reading TFSA holdings

reg non residence tax return

Hi Dev, thank you for the clarification and for your kind words. To answer your questions directly: 1) Can Form T1159 be used to file 10 years of tax returns? No. Form T1159 is only the VDP application form. It is not a tax return and it cannot be used to report rental income or … Continue reading reg non residence tax return

REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

Response: You are correct to be cautious here — Section 216 returns cannot be filed “through” the VDP, because Section 216 is an election, and elections are generally excluded from VDP relief. A few key points to clarify the process: 1.VDP vs. Section 216 elections The Voluntary Disclosures Program is intended to correct failures to … Continue reading REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

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