What (income from Property) Tax for a Foreigner

[kiwi1959]

Hello

- Assume a Tourist during his visit to Canada buys a House with 35% down payment
(Minimum is 35% for foreigners).
- Immediately after, he rents out his house for a tenant.
- Then leaves Canada within the same month visit.

What kind (and percentage) of Taxes he's subject to pay to CRA, if any ?

Thank you

 

[torontosm]

In general, you will pay 25% of the gross rental amount. There are exceptions, as described here:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rntl/rqrmnts-eng.html

Hello

- Assume a Tourist during his visit to Canada buys a House with 35% down payment
(Minimum is 35% for foreigners).
- Immediately after, he rents out his house for a tenant.
- Then leaves Canada within the same month visit.

What kind (and percentage) of Taxes he's subject to pay to CRA, if any ?

Thank you

 

[kiwi1959]

Thank you torontosm for your reply, however, what if this Foreigner is paying mortgage + Property tax + House insurance + House maintenance/repair which exceed the income.
Here is a typical example:
Monthly Income (rent) = + 1,400
Mortgage / Mthly = - 1,100
Propert Tax / Mthly = - 240
Home insurance / Mthly = - 160

Monthly Balance = -100 Now, would CRA contribute with me in that loss with 25% as well ?

 

[scylla]

It's the gross rental amount - not the net.

You need to add 25% to your Monthly Income (rent) total before you deduct the morgtage, property taxes and home insurance.

So in the example you have given, you would owe $250.

 

[steaky]

It's the gross rental amount - not the net.

You need to add 25% to your Monthly Income (rent) total before you deduct the morgtage, property taxes and home insurance.

So in the example you have given, you would owe $250.

No, the interest portion of the mortgage is also deductible from the gross income. Therefore OP would owe less than $250 in this example.

 

[Galip]

Thank you torontosm for your reply, however, what if this Foreigner is paying mortgage + Property tax + House insurance + House maintenance/repair which exceed the income.
Here is a typical example:
Monthly Income (rent) = + 1,400
Mortgage / Mthly = - 1,100
Propert Tax / Mthly = - 240
Home insurance / Mthly = - 160

Monthly Balance = -100 Now, would CRA contribute with me in that loss with 25% as well ?

According to your annual income (16800 dollars), your mortgage monthly payment (1100 dollars) is too high. If you wanna gain something try to lower your mortgage monthly payments first.