Author Topic: Filing taxes for Canada after becoming non-resident  (Read 1537 times)

EmigrantTaxes

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Filing taxes for Canada after becoming non-resident
« on: April 10, 2020, 09:55:48 PM »
Hi, I left Canada for SE Asia in January 2020, and this will be first year that I'm filing to the CRA from outside of the country, so there are a few things that are unclear to me. I'll probably talk to an accountant to get more advice but I thought I'd also ask in a public forum to get advice from a wider audience.

1. I was renting my principal residence out on Airbnb for a portion of the year before I left the country, and I have found someone who would like to take over management of the Airbnb.

If I am earning Airbnb revenue from a property that I own in Canada, does that constitute a significant 'economic tie' to Canada, and jeopardize my non-residency status?

2. On Page 1 of the income tax return, what do I put for my address in the 'Identification' section? See screenshot:



There is a 'province' field, and no 'country' field, so I don't see how I can enter a non-Canadian mailing address.

3. On Page 1, there is also an 'information about your residence' section:



Next year, when I file my income tax return for 2020, I will need to put the date of my departure from Canada in the "If you became or ceased to be a resident of Canada for income tax purposes in 2020, enter the date of" section.

What would I put for these other two questions:

'Enter your province or territory of residence on December 31, 2020'

'Enter the province or territory where you currently reside if it is not the same as your mailing address above'

?

Any advice on this would be appreciated.
« Last Edit: April 11, 2020, 12:22:53 AM by EmigrantTaxes »

Goldielocks

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Re: Filing taxes for Canada after becoming non-resident
« Reply #1 on: April 30, 2020, 04:54:11 PM »
It sounds like you are currently non-resident.
1.  Economic tie -- just having a rental property business in Canada is not usually a substantive economic tie all by itself.  I assume the income is minor compared to your world wide income.  Also to look at are bank accounts, other employment, property owned elsewhere, time spent away from Canada, residence of immediate family members, where you have medical insurance, driver's license, etc.   They also will take into account the ties that you have to the place where you are now living.  If you are essentially nomadic for more than a year (moving countries every month, perhaps) , then they could decide that you are still Canadian with substantial ties, it's a grey area you need advice on.

Tax return
You need the tax return for non-residents, or if 2019 was the year you became  non-resident, then you need the tax return for people emigrating.

Non-resident tax return (allows other countries as residence address) https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5013-r/5013-r-19e.pdf

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/non-residents.html

If you were a non-resident of Canada during 2019 and you received rental income from real or immovable property in Canada ..., get Guide T4144, Income Tax Guide for Electing Under Section 216.  The Section 216.1 deadline is to file today, April 30 2020.
It allows you to pay Cdn tax on your NET real estate rental income, not the gross income.