Foreigner buying 2nd home in Toronto

[indigostretch]

Hi There, say wife & me buy a condo in Toronto to spend 4 months/year (May-June / Aug-Sep)
wont need Canadian driver's license, or credit card, but yes a cable, internet, phone number
& mobile phones in our name.

Condo wont be rented during our absence, we'll leave stuff there.

Could we be considered deemed residents for tax purposes?
must we declare? how about Ontario Taxes (other than Real Estate)?

Thanks in advance!

 

[Leon]

You might be seen as a resident if you have a home in Canada. There is some more info on that here: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

You should be able to get cable, internet, phone and mobile phones although you may have to put up a deposit to open those services. You would get the deposit back after you'd paid your bills on time for about 6 months.

 

[indigostretch]

Thanks Leon, do you know if as "deemed resident" we are obligation to declare and pay
taxes on our worldwide income even if we spend 120 days/year in Canada?

We dont intend to work or conduct any business in Canada.

Thanks.

 

[Leon]

Go to my link and find the contact info for CRA and ask them. It looks like they have some forms there you can fill out and send in to determine if you would be classified as a resident or not. It seems it would depend on having a home as well as furniture in Canada, how many days you spend in Canada, how many days you spend in other countries and if you pay taxes there.

 

[indigostretch]

Leon, thanks a lot...no need to struggle with canadian tax system, better keep it
simple and rent a condo for the months we intend to stay..I guess if it's short
term lease contract and stay max. 120 days/year wont be considered deemed
resident....cheers!

 

[toby]

Exactly. Better NOT to have access to a residence (rented or owned) the entire year or yes, you will be deemed a full-time resident, and be taxable on worldwide income whether you are in or out of Canada.

But owning versus renting is a trade-off.

If you own, the cost of property tax and condo fees over a year will probably equal the cost of three months' rent. The advantage of ownership is that you get the benefit of any rise in property value, and you would be able to leave your personal belongings there.

If you rent, you don't pay tax on worldwide income while you are out of Canada, you don't have to worry about the property while you are absent, but you are living in someone else's place with their furniture, and you must find storage for your personal belongings while you are away. And, most landlords want a full-year ease, or at least a 6-month lease.

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