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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.

Left Canada in 2020 – Did not file a Departure date or Emigrant return. But filing as a Resident since then.

Dear Altaf, Thank you for your detailed email. It sounds like you’ve put a lot of thought into this, and your summary is very helpful in understanding the situation. Here’s a breakdown of how best to proceed: 1. Residency Correction Requires NR73 Form To officially update your tax residency status, the CRA will not revise … Continue reading Left Canada in 2020 – Did not file a Departure date or Emigrant return. But filing as a Resident since then.

T1- ADJ questions & Submission.

Hi Demetra, Thank you for your message — great questions, and I’m happy to clarify. 1. Changing Your Departure Date (After Assessment) Once a tax return has been assessed, CRA will generally not allow you to change your departure date using just a T1-ADJ form. To change your departure date, you must first file Form … Continue reading T1- ADJ questions & Submission.

Returning to Canada

Hi Jay Dee, Thank you for reaching out—and I really appreciate your kind words about my YouTube channel. I’m glad you’ve found the content helpful! It’s great to hear your family is considering a return to Canada after your time in Australia. I’ll walk you through the main points you raised: 1. Deemed Disposition – … Continue reading Returning to Canada

RC199 Voluntary Disclosures Program (VDP) Application.

Hi Nick, Thank you for your detailed message. Based on what you’ve shared, it sounds like a strong case for making a VDP submission, especially with multiple years of unreported foreign income and T1135 omissions. Here’s a breakdown to help clarify the filing requirements and process: What to File – Per Taxpayer: Since the issue … Continue reading RC199 Voluntary Disclosures Program (VDP) Application.

Foreign Bank Account Interest is NOT shown in Canada. But interest is very minor and does not affect overall taxes.

Hi Poonam, Thanks for your question. Here’s a summary of your situation and recommended next steps: Key Facts: Foreign bank account under $100,000 → No T1135 required Foreign interest not reported for 10 years No tax payable in any year (income below basic personal amount) Do You Need to Refile or Use the VDP? Technically … Continue reading Foreign Bank Account Interest is NOT shown in Canada. But interest is very minor and does not affect overall taxes.

What is the difference between them? Which one to use?

Dear Janis, Thank you for reaching out with your detailed questions. Below is an overview of the four methods you mentioned and when each one is applicable: Change My Return – This is an online option available through CRA’s My Account for making simple adjustments to previously filed returns. It’s generally the easiest way to … Continue reading What is the difference between them? Which one to use?

Bank issued t5 instead of NR4

Dear Leo, Thank you for your question. Since you are a non-resident of Canada and will be filing as a resident tax alien in the US, there are a few important considerations regarding the T5 versus NR4: Difference Between T5 and NR4 A T5 (Statement of Investment Income) is typically issued to Canadian residents and … Continue reading Bank issued t5 instead of NR4

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