Answers Archive

Reporting RRSP over-contributions

Hi Dennis, Yes, generally you should report the T4RSP slip and then claim the offsetting deduction using Form T746, assuming the withdrawal relates to an RRSP over-contribution that was withdrawn in 2025. The usual reporting is as follows: 1.Report the T4RSP income The $4,000 shown in Box 22 of the T4RSP should generally be reported … Continue reading

Am i obligated to file 2025 Tax return

Hi Max, Thank you for your question. Canadian tax residency is based on your residential ties to Canada, not simply your permanent resident status. Based on the facts you provided, your brief visits in 2024 and early/mid-2025 may not, by themselves, have made you a Canadian tax resident, since you stayed temporarily and did not … Continue reading

Tax return help for usa and canada

Hi, Thank you for your message. Based on the facts you shared, it appears that you may need to file both a Canadian tax return and a U.S. tax return for 2025. Since you moved to Canada in March 2025 after living in the U.S. since 2019, the key issue will be determining your tax … Continue reading

FHSA to RRSP transfer and PFIC concerns(moving to US)

Hi Peace, This can be a useful planning idea, but it needs to be handled carefully. From the Canadian tax side, a direct transfer from an FHSA to your own RRSP or RRIF can generally be done without immediate Canadian tax. It also generally does not use RRSP room, provided the transfer is done properly … Continue reading

Option Trading in RRSP accounts

Hi Sergey, In general, an RRSP can hold certain option strategies, but there are important limits. A covered call is generally viewed as more acceptable inside an RRSP where the plan already owns the underlying securities. CRA has indicated that writing a covered call, by itself, does not automatically mean the RRSP is carrying on … Continue reading

Missed foreign Income

Thank you for your question. Based on the facts provided, this is likely something that should be corrected proactively. Since you missed reporting foreign income for the past 3 to 4 years, and your total foreign property appears to have exceeded CAD $100,000 in 2023 and 2024, there may be two separate issues: Unreported foreign … Continue reading

US stock in joint acct in Cdn Brokerage where primary is non-resident. Only received NR4.

Hi Dalsa, Thank you for your question. In a joint investment account, the income is generally reported by the beneficial owner(s) of the funds, not necessarily based only on whose name appears first on the account. You should report your share of the investment income based on your actual ownership/contribution to the account. For the … Continue reading

Non-resident of Canada – Can I open new RRSP / RESP accounts?

Hi Peace, Yes, a non-resident of Canada may generally continue to hold an existing RRSP. Opening a new RRSP as a non-resident is not prohibited under the Income Tax Act, provided you have available RRSP contribution room. However, in practice, many Canadian financial institutions restrict non-residents from opening new investment accounts because of securities, compliance, … Continue reading

Should i submit a nr73

Hi, Thank you for your message. Based on what you described, it sounds like you may have become a non-resident of Canada when you moved to Japan in 2018. If so, you generally should not have continued filing Canadian tax returns as a resident for later years unless you still had sufficient residential ties to … Continue reading

Avoiding double taxing between US and Canada.

Hi Jeff, Thank you for your question. In general, if you are a non-resident of Canada, your U.S. income is not normally taxed in Canada just because it is shown on a Canadian non-resident return. The confusion usually comes from Schedule A, Statement of World Income. CRA requires some non-residents to disclose their world income … Continue reading

Form 5471 Preparation Fees

Hi Peace, Generally, I would be cautious about deducting Form 5471 preparation fees in the Canadian corporation. The main issue is that Form 5471 is typically a U.S. information return filing requirement imposed on the U.S. shareholders, not on the Canadian corporation itself. The IRS states that Form 5471 filing requirements apply to certain U.S. … Continue reading

2025 Canadian Tax Residency Guidance Question

Hi Todd, Thank you for your message. Based on the facts you provided, it may still be possible to file your 2025 Canadian return as a factual resident of Canada, since you appear to have maintained a number of ongoing residential ties with Canada, including your mailing address, driver’s licence, OHIP coverage, bank accounts, credit … Continue reading

Canadian non-resident issued T5s – Tax filing requirement

Hi Nathan, Yes, in many cases the bank should have issued an NR4 instead of a T5 once you became a non-resident of Canada. CRA’s current guidance says amounts paid or credited by a Canadian resident to a non-resident are generally reported on an NR4, not a T5. That said, for a non-resident receiving ordinary … Continue reading

Non-Resident Short-Term Employment Income

Thank you for your question. Based on the facts you described, salary paid to you for duties physically performed in Canada would generally be considered Canadian-source employment income, even if you are a U.S. tax resident. As a result, your Canadian corporation would normally have Canadian payroll withholding and reporting obligations unless treaty relief is … Continue reading

Selling Rental Property as Non Resident

Hi Michael, Yes, you are broadly on the right track, but there are a couple of important distinctions. If you are a non-resident of Canada selling Canadian rental property, you generally need to file Form T2062 with the CRA within 10 days of the sale, or earlier based on the proposed sale, to request a … Continue reading

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