Consideration of Taxes for new immigrant???

[mastfadi]

Hi,

I have received my PR card but I am not planning to move to Canada for another 2 years. I have moved some funds to a Canadian Bank and thats all I have in Canada at the moment.

1)Am I eligible to consider paying any taxes because I moved those funds to Canada?.
2)Also If I make any investment in Canada when I have still not moved to Canada permanently like buying an apartment and giving that on rent, how will my taxes look like after that ? Will I have to pay taxes on that apartment and the rent I get in Canada ?
3)Also will I have to declare all my assets both inside and outside Canada when I file my first taxes? The reason for that may be because I declare all my assets which I have before moving to Canada so that they may not be taxable

Please I have tried to understand the taxation and I know no one would have a definite answer on that. Only a lawyer can give the most accurate answer but please let me know if you have any knowledge on these points.

Would appreciate.

 

[mastfadi]

Would really appreciate if anyone can shed some light on my questions with whatever knowledge available..

Thanks in advance

 

[zardoz]

Maybe this will help? http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

 

[torontosm]

1)Am I eligible to consider paying any taxes because I moved those funds to Canada?.
2)Also If I make any investment in Canada when I have still not moved to Canada permanently like buying an apartment and giving that on rent, how will my taxes look like after that ? Will I have to pay taxes on that apartment and the rent I get in Canada ?
3)Also will I have to declare all my assets both inside and outside Canada when I file my first taxes? The reason for that may be because I declare all my assets which I have before moving to Canada so that they may not be taxable

1) You will be taxed on the earnings on your funds in Canada, if any. If your funds are sitting in a non-interest bearing account, you don't need to worry about anything.
2) Rental income will be taxed. As a non-resident, you are subject to a withholding of 25% of your total rental income, which is adjusted after you file your returns for the year. You will not pay taxes on the purchase of the apartment (other than the land transfer tax) but will be subject to capital gains tax once you sell it.
3) Once you commence filing tax returns as a resident, you will be questioned about your assets outside of Canada. You will have to start paying taxes on the income generated by these assets, as well as any gains on these assets. However, this only commences once you are a resident of Canada for tax purposes.

I hope this helps.

 

[mastfadi]

Torontosm,

If I have no ties with Canada except the apartment I will own and get rent on that, will I be considered a non-resident or a factual resident of Canada as an apartment may be considered a significant tie and I may be considered resident for tax purposes right?? in which case i would end up paying taxes on income outside Canada which I don't want at all.

Please give me some more detail on that.

Thanks

 

[steaky]

Torontosm,

If I have no ties with Canada except the apartment I will own and get rent on that, will I be considered a non-resident or a factual resident of Canada as an apartment may be considered a significant tie and I may be considered resident for tax purposes right?? in which case i would end up paying taxes on income outside Canada which I don't want at all.

Please give me some more detail on that.

Thanks

You will need to file tax for your Canadian rental income. Call CRA to discuss your situation.

 

[torontosm]

Torontosm,

If I have no ties with Canada except the apartment I will own and get rent on that, will I be considered a non-resident or a factual resident of Canada as an apartment may be considered a significant tie and I may be considered resident for tax purposes right?? in which case i would end up paying taxes on income outside Canada which I don't want at all.

Please give me some more detail on that.

Thanks

If your apartment is rented to a non-related party (i.e., not a relative) on an arms-length basis, and you don't keep your personal possessions (i.e., furniture) in the unit, then you can record your rental income while still being a non-resident for tax purposes. The only thing to bear in mind is that you should remit 25% of the total rent to the CRA on a monthly basis.