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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.

OEPTC voluntary payback for 7-8 years. How do I do that? – Ontario Trillium Benefits

Hi Haniel, Thank you for reaching out and for your transparency in wanting to rectify the Ontario Energy and Property Tax Credit (OEPTC) amounts received over the past several years. You’re absolutely right that the OEPTC is only available to individuals who pay property tax and either own or rent their principal residence. Since you … Continue reading OEPTC voluntary payback for 7-8 years. How do I do that? – Ontario Trillium Benefits

Selling my primary residence while being a non resident

Hi Ziad, Thank you for reaching out and for providing the detailed background of your situation. Based on your description, it sounds like your residency status changed partway through 2024, which has important tax implications—especially regarding the sale of your former primary residence. Here’s how we recommend approaching the situation: 1.Departure Tax & T1161 Since … Continue reading Selling my primary residence while being a non resident

Factual Residency Determination

Hi Todd, Thank you for reaching out and providing the details of your situation. Based on the information you’ve shared, it appears that you continue to maintain significant residential ties to Canada, including a Canadian mailing address, credit cards, RRSP, TFSA, non-registered investments, bank accounts, driver’s license, passport, and extended OHIP coverage. These ties strongly … Continue reading Factual Residency Determination

Non-Resident. Bank Interest in Canada – Withholding tax confusion. Is Withholding tax eliminated for NR since 2008?.

Dear Jyoti, Thank you for your detailed inquiry. You are correct in your understanding of the elimination of withholding tax on bank interest earned by non-residents of Canada, provided certain conditions are met. ✅ Withholding Tax on Bank Interest As per the changes introduced effective January 1, 2008, bank interest paid to non-residents by Canadian … Continue reading Non-Resident. Bank Interest in Canada – Withholding tax confusion. Is Withholding tax eliminated for NR since 2008?.

T5 got from Chase bank USA

Dear Harnish, Thank you for your message. As a non-resident of Canada living and working in the United States since 2015, you are generally not required to file a Canadian tax return for U.S. interest income—regardless of whether you received a T5 slip. The $250 interest reported by Chase Bank is U.S.-source income, and it … Continue reading T5 got from Chase bank USA

T5 Issued to Non Resident of Canada

Dear So, Thank you for reaching out. As a non-resident of Canada, you are correct that interest paid by an arm’s length Canadian payer—such as a condo developer—is generally exempt from Canadian withholding tax under Section 212(1)(b) of the Income Tax Act. In your case, the interest received on your pre-construction condo deposit should not … Continue reading T5 Issued to Non Resident of Canada

Principal Residence gifted to our son. Did our Real Estate lawyer make a mistake? Consequences?

Hi Jennifer, Thank you again for providing the detailed background. I understand your concerns, and I’ll address your questions point by point based on how the CRA typically views inter-family property transfers. 1. Was the transfer a gift or a sale for $2 in CRA’s view? Although the Land Registry records the consideration as $2, … Continue reading Principal Residence gifted to our son. Did our Real Estate lawyer make a mistake? Consequences?

Emigrant Tax Return – Departure date not filed & Capital Gains Tax on Joint House.

Hi Aliki, Thank you for your message and for providing detailed information about your situation. Based on the facts you’ve shared, here’s an updated overview of the tax implications related to your departure from Canada and the sale of your home. 1. Departure Tax (Deemed Disposition) and Principal Residence Canadian Real Estate Exemption: Departure tax … Continue reading Emigrant Tax Return – Departure date not filed & Capital Gains Tax on Joint House.

Reference: RC199 Voluntary Disclosures Program (VDP) Application.

Hi Nick, No problem at all — your questions are great, and I understand the desire to ensure your Voluntary Disclosures Program (VDP) submission is both thorough and concise! Here’s a detailed breakdown of how you can approach these issues: 1. T1-Amended Return and T1-Adj Form Submission When submitting the T1-Amended Return and T1-Adjustment form, … Continue reading Reference: RC199 Voluntary Disclosures Program (VDP) Application.

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