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About Non Resident Taxes

Charlie205

Newbie
Jun 11, 2020
1
0
I became a non-resident on Canada in 2010. I own a condo in Toronto and make a net loss every year. (Condo rent is less than the mortgage payment). I filed my taxes till 2015.

I haven't filed taxes since 2016. Now I am thinking of selling my Condo. However, I need to make sure that its tax situation is clear before I proceed with the sale. I want to file 2016, 2017, 2018 and 2019 taxes. Net income is basically zero.

In the i "Income Tax Guide for Electing Under Section 216", it says: "If the CRA approved your Form NR6 for the year and you do not file your section 216 return by the due date, you will be subject to non-resident tax on your gross rental income. "

First, I never filed NR6. Second, does the above statement mean that if I file my taxes now, CRA will ask me to pay on my gross rent and not the net rent?
 

steaky

VIP Member
Nov 11, 2008
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In addition, you probably will have to pay penalties on the taxes you owed since 2016.

As you said if don't file NR6 tax return, you will have to remit a % of your gross rent rather than the net rent to CRA. If I were you, I would get a trusted accountant to sort out this mess.
 

torontosm

Champion Member
Apr 3, 2013
1,648
254
I became a non-resident on Canada in 2010. I own a condo in Toronto and make a net loss every year. (Condo rent is less than the mortgage payment). I filed my taxes till 2015.

I haven't filed taxes since 2016. Now I am thinking of selling my Condo. However, I need to make sure that its tax situation is clear before I proceed with the sale. I want to file 2016, 2017, 2018 and 2019 taxes. Net income is basically zero.

In the i "Income Tax Guide for Electing Under Section 216", it says: "If the CRA approved your Form NR6 for the year and you do not file your section 216 return by the due date, you will be subject to non-resident tax on your gross rental income. "

First, I never filed NR6. Second, does the above statement mean that if I file my taxes now, CRA will ask me to pay on my gross rent and not the net rent?
As a non-resident with rental income, you were supposed to withhold a portion (I believe it is 40%) and remit this to the CRA each month. Obviously you didn't do this. As suggested above, get yourself an accountant to sort this out with the CRA before even worrying about capital gains.