FIRST CANADA TAX FILING - Must-Dos ??

[us2yow]

Hi,

I am filing my first Canadian tax filing after having moved here full time to reside for tax purposes. Can someone summarize the important must-dos.

1) Canadian income - gained from the day moved here to reside full time for tax purposes;

2) World Income - gained from the day moved here to reside full time for tax purposes - including foreign rental income from overseas apartment that one possesses and income overseas consulting work;

That is pretty much it. YES ? Also, can anyone alert me if any special or mandatory forms have to be filled as part of this first time filing ?Also, what all supplementary documents or photocopies does one have to provide ?

I have heard that it is better to provide a simple clear-cut filing with maybe - at the most - an attachment of a clear cover letter explaining that I am enclosing my first filing and related details. I was told that there is no need to confuse by giving TOO MUCH info. upfront such as extra photocopies as backgrounder unless they come back later with pointed questions.

Can someone please advise on all of the above. Thanks in advance. Much appreciate your timely insight,

 

[steaky]

Canadian income does not necessary mean those income you gained from the day you moved here to reside full time for tax purposes. Since you can buy a Canadian real property outside the country (as non-resident of Canada) and generate rental income from it, but you still have to report it to the Revenue Agency.

In any case, if you are confuse, I would suggest you to hire an accountant or tax adviser.

 

[utelurtz]

Also a question about first-time filers.
Is it true that you don't have to declare property over $100,000 in the year when you became resident of Canada?
So, you just say NO to that question in the tax form?

Does this rule also apply to declaring the "foreign rental income"?

 

[Rosie1957]

Also a question about first-time filers.
Is it true that you don't have to declare property over $100,000 in the year when you became resident of Canada?
So, you just say NO to that question in the tax form?

Does this rule also apply to declaring the "foreign rental income"?

It's important to distinguish between property and the income generated by property. In *any* year, not just the year you immigrate, you need to declare foreign property worth more than $100,000, excluding property that's solely for personal use or for use in an active business.

You *also* need to declare all your income, from sources both inside and outside Canada. For example, if you owned a rental property overseas and were renting it out, you would certainly need to report your rental income. But you would only have to check "yes" and fill out a Form 1135 if your total foreign property was valued at more than $100,000 Canadian.

 

[Rosie1957]

Hi,

I am filing my first Canadian tax filing after having moved here full time to reside for tax purposes. Can someone summarize the important must-dos.

1) Canadian income - gained from the day moved here to reside full time for tax purposes;

2) World Income - gained from the day moved here to reside full time for tax purposes - including foreign rental income from overseas apartment that one possesses and income overseas consulting work;

That is pretty much it. YES ?

Assuming that you have no Canadian-source income *before* you immigrate, that is indeed pretty much it. You want to report the rental income on a Form 776. See CRA publication T4036.

For the consulting work, are you getting paid as an employee or as an independent contractor? That makes a huge difference in how you report the income.

The return you're describing sounds as if it might be moderately complicated, so you might want to see professional tax preparation help, at least for the first time you file.

Also, can anyone alert me if any special or mandatory forms have to be filled as part of this first time filing ?Also, what all supplementary documents or photocopies does one have to provide ?

I have heard that it is better to provide a simple clear-cut filing with maybe - at the most - an attachment of a clear cover letter explaining that I am enclosing my first filing and related details. I was told that there is no need to confuse by giving TOO MUCH info. upfront such as extra photocopies as backgrounder unless they come back later with pointed questions.

Can someone please advise on all of the above. Thanks in advance. Much appreciate your timely insight,

Generally one doesn't include attachments or letters at all, only the required forms. Which forms are required depends on what type of income you have. Start with the basic "General Income Tax and Benefit Package" for your province of residence and go from there. Attach any Canadian tax slips you receive (for example, a T5 slip reporting interest, a T4 slip reporting income from a Canadian employer). If the CRA wants more info, you can be sure that they'll be in touch!

 

[Hasni]

Daer Rosie 1957, for a new immigrant who has just landed with some of his money, has no job, no source of income in Canada and neither overseas...wondering what his tax return would look like if he has file one !