Do i need to file my tax in Canada ?

[dsindatry@gmail.com]

Hi Seniors,

After looking a lot and reading a lot (well i failed to understand a few things and confused) i am writing this post.

My scenario is

I am a Canadian citizen and left Canada on March 13th 2017 to USA on a job.
Wife and child joined me in USA on July 24th 2017 (Child is a Canadian citizen, Wife is a Permanent Resident)
Still working on the same job will date in USA.
I have bought a house in Canada and i get rent every month.

Do i need to file Canadian tax ?

Thank you,
Dezzy

 

[zardoz]

Hi Seniors,

After looking a lot and reading a lot (well i failed to understand a few things and confused) i am writing this post.

My scenario is

I am a Canadian citizen and left Canada on March 13th 2017 to USA on a job.
Wife and child joined me in USA on July 24th 2017 (Child is a Canadian citizen, Wife is a Permanent Resident)
Still working on the same job will date in USA.
I have bought a house in Canada and i get rent every month.

Do i need to file Canadian tax ?

Thank you,
Dezzy

I suspect that the answer is a definite yes but you can certainly contact CRA to confirm. You are taking Canadian sourced income and you have strong ties to Canada.

 

[steaky]

Hi Seniors,

After looking a lot and reading a lot (well i failed to understand a few things and confused) i am writing this post.

My scenario is

I am a Canadian citizen and left Canada on March 13th 2017 to USA on a job.
Wife and child joined me in USA on July 24th 2017 (Child is a Canadian citizen, Wife is a Permanent Resident)
Still working on the same job will date in USA.
I have bought a house in Canada and i get rent every month.

Do i need to file Canadian tax ?

Thank you,
Dezzy

Yes, you need to file Canadian non resident tax return to report your rental income. You must do so before 30 April, otherwise expect penalty.

 

[dsindatry@gmail.com]

thank you for your reply.

1. Question- You say that i am a Canadian non-resident

You are a non-resident for tax purposes if you:

• normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
• do not have significant residential ties in Canada; and
  • you live outside Canada throughout the tax year; or
  • you stay in Canada for less than 183 days in the tax year.

I meet the 1st condition and stay in Canada is less than 183 days. so that's good.
Now in " Residential ties " i meet some criteria and not all

Significant residential ties to Canada include:

• a home in Canada; --- YES
• a spouse or common-law partner in Canada; and (NOT Currently , wife and child stayed in Canada from Jan 2017 to July 2017)
• dependents in Canada; (YES as mentioned above)

Secondary residential ties that may be relevant include:

• personal property in Canada, such as a car or furniture; NO CAR or Furniture
• social ties in Canada, such as memberships in Canadian recreational or religious organizations; NO
• economic ties in Canada, such as Canadian bank accounts or credit cards; YES
• a Canadian driver's licence; YES
• a Canadian passport; and YES
• health insurance with a Canadian province or territory. NO

Am i still a non-resident for tax purposes ?

 

[dsindatry@gmail.com]

I suspect that the answer is a definite yes but you can certainly contact CRA to confirm. You are taking Canadian sourced income and you have strong ties to Canada.

I spoke to CRA this morning and they said to first determine your residency, based on that you will know your tax.

I have posted above regarding my residency, Do you think i am a non-resident (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html) OR a factual resident (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html)?

 

[zardoz]

I spoke to CRA this morning and they said to first determine your residency, based on that you will know your tax.

I have posted above regarding my residency, Do you think i am a non-resident (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html) OR a factual resident (https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/factual-residents-temporarily-outside-canada.html)?

I believe that the balance of probability is that your "significant" ties would make you a factual resident. Ask for a determination?

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html

How to obtain a determination of residence status
International and Ottawa Tax Services Office
1.53 Taxpayers requiring further general information about how residence status is determined for purposes of Canadian income tax should contact International tax and non-resident enquiries at 1-800-959-8281 (toll free in Canada and the United States), or 613-940-8495 (for service in English), or 613-940-8496 (for service in French). Written enquiries should be addressed to:

International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

1.54 Taxpayers who plan to leave or have left Canada, either permanently or temporarily, should consider completing Form NR73, Determination of Residency Status (Leaving Canada) and reviewing the information referred to in ¶1.24. Taxpayers who have entered or sojourned in Canada during the year should consider completing Form NR74, Determination of Residency Status (Entering Canada) and reviewing the information referred to in ¶1.29.

1.55 Once completed, Form NR73 or NR74, as applicable, should be mailed to the address given above or faxed to 613-941-2505. In most cases, the CRA will be able to provide an opinion regarding a taxpayer's residence status from the information recorded on the completed form. This opinion is based entirely on the facts provided by the taxpayer to the CRA in Form NR73 or NR74, as applicable. Therefore, it is critical that the taxpayer provide all of the details concerning his or her residential ties with Canada and abroad. This opinion is not binding on the CRA and may be subject to a more detailed review at a later date and supporting documentation may be required at that time.

 

[steaky]

But wasn't the home in Canada rented out? If so, it is not considered a significant tie to Canada. In any case, you need to file tax in Canada, regardless of your tax status.

You need act fast. Time is running out.

 

[pie_vancouver]

Maybe he is confused if he is going to report worldwide income (if resident) in Canadian ITR or just the rental income (non-resident).
It is not easy to advise, we don't know how much is the income, you might not owe income tax, if so, you are not required to file.
To be clear, go to a tax accountant or h&r block.