Parents sponsorship - income earned in Canada while residing abroad

[lc9700]

Hi,

I'm a Canadian citizen with aging parents abroad.
suppose I own real estate property in Canada from which I collect rent while I live and work in the US. I understand that at the time of application I would need to relocate back to Canada. However, I would need to file income tax in Canada on the rental income. Is it possible to use this toward the 3 year minimum income history?

Thanks!

 

[scylla]

Hi,

I'm a Canadian citizen with aging parents abroad.
suppose I own real estate property in Canada from which I collect rent while I live and work in the US. I understand that at the time of application I would need to relocate back to Canada. However, I would need to file income tax in Canada on the rental income. Is it possible to use this toward the 3 year minimum income history?

Thanks!

Yes, you can use rental income from outside of Canada towards LICO provided you declared this income in your Canadian tax return for each of the three years. That will certainly work. Basically IRCC will only consider income declared in your Canadian tax return. So anything you want credit for has to be in your CRA NOA.

 

[lc9700]

Yes, you can use rental income from outside of Canada towards LICO provided you declared this income in your Canadian tax return for each of the three years. That will certainly work. Basically IRCC will only consider income declared in your Canadian tax return. So anything you want credit for has to be in your CRA NOA.

Thank you scylla!

I just to confirm - in your first sentence you mean that the rental income can be collected in Canada while I personally reside outside Canada, full time, is that right?

Also, certainly I will be filing the income on a Canadian non resident tax return.

Thanks again!!

 

[canuck78]

Thank you scylla!

I just to confirm - in your first sentence you mean that the rental income can be collected in Canada while I personally reside outside Canada, full time, is that right?

Also, certainly I will be filing the income on a Canadian non resident tax return.

Thanks again!!

Think @scylla misread your post. You will not be able to use your rental income to sponsor your parents while you are living abroad. The whole point of sponsorship is to reunite families that have established their homes in Canada.

 

[lc9700]

Think @scylla misread your post. You will not be able to use your rental income to sponsor your parents while you are living abroad. The whole point of sponsorship is to reunite families that have established their homes in Canada.

Thanks for your input. I understand that I need to be present in Canada when filing the application, and do intend to return to live in Canada full time. However, the thing I was wondering about is - if I have said rental income, do I still need to accumulate the 3 years of continuous income above minimum requirement from scratch starting from my return? Or does the rental income already count, assuming it is high enough, and allow me to apply immediately upon returning?

Thanks!

 

[canuck78]

Thanks for your input. I understand that I need to be present in Canada when filing the application, and do intend to return to live in Canada full time. However, the thing I was wondering about is - if I have said rental income, do I still need to accumulate the 3 years of continuous income above minimum requirement from scratch starting from my return? Or does the rental income already count, assuming it is high enough, and allow me to apply immediately upon returning?

Thanks!

You will only be able to count the years where you have been living in Canada and you are a tax resident. Based upon your description you will need to return to Canada before you can start accumulating years. If not in Quebec, 3 years is the smallest amount of years before qualifying but parent sponsorship is never guaranteed. When moving back to Canada you must realize that there is a possibility they may never qualify for sponsorship.

 

[lc9700]

Ah, I see. Thanks a lot for your clarification.