Non-resident owners of personal use or rental properties will pay capital gains tax on sale but there is a grocery list of compliance rules for rental properties. We are here to help you navigate non-resident issues including the following matters:
The filing requirements for non-resident owners of Canadian Real Estate can be onerous and extremely complicated. We are experts in these filing requirements as well as with advising on the tax consequences of selling real estate. Please be advised there are firm deadlines for these filing requirements. Feel free to e-mail the head of our non-resident tax department at firstname.lastname@example.org.
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EMIGRANTS/IMMIGRANTS & AMERICAN CITIZENS
Canadian residents emigrating have to consider the tax impact of retaining a Canadian residential property. The Principal Residence Election is an annual election and upon emigration, by definition is not available to non-residents. Therefore, for each year the emigrant owns the Canadian residence, a larger percentage of the gain on the sale will be a taxable capital gain because of the averaging effect of the Principal Residence Designation Form T2091. They need to consider the consequences of selling the Canadian residence versus changing its use to rental property. As well, other Canadian based assets would have to be considered. For effective tax planning before becoming a non-resident, do not hesitate to contact the head of our non-resident tax department at email@example.com.