Hello Everyone,
I just got my TN visa and moving to US. Can someone help me to understand how canadian taxation would work if I rent out my house and keep my bank accounts open?
Appreciate your help.
Hardeep.
I could be wrong but my understanding is that u can keep the house as investment and rent it out.
Location: Canada-Glorious and Free
Posted on: 28-03-06 10:08:51
Any income made in Canada is subject to Canadian Taxes. There could be US tax implication under foriegn income. I would sell it. The income from the sale of your home is tax free. Property prices are doing well right now. Take the opportunity and cash out.
BV
Quote:
Originally posted by hardeep3
Hello Everyone,
I just got my TN visa and moving to US. Can someone help me to understand how canadian taxation would work if I rent out my house and keep my bank accounts open?
Appreciate your help.
Hardeep.
But you are on TN. If u need to come back where will u stay?
Yes, you can rent it out and pay your mortgage and file a Non-Resident Tax on the income... Your CPA should be able to give you enough info on this...
Btw, I am looking for a house to rent... Where is your house located??
If I were you, I would like to rent it out.
But there are implications:
1. Some basic services are to be provided to tenant, are you equipped to handle that? e.g. fixing taps, leaking roof etc. on short notice.
2. As non-resident you would only be taxed in Canada for the income originating in Canada. So your rental income would be taxable in Canada, but not your US income, so long you are non-resident.
3. This way you could take advantage of long term appreciation of the property, and earn cash income, provided :
a. Your rental income exceeds mortgage amount, so that you have positive cash flow.
b. You are able to fix tenant servicing, and letting it out again when it falls vacant. Vacancy rates may hover around 5 to 7% per annum even when you are efficient. One option could be to appoint a broker to manage your property. You have to check the costs, they may be in range of 7% to 10% of total rental income.
But final decision you have to take, keeping in view your aptitude/interest.
Best of luck.
if you have ties to Canada such as house while you are on TN in US, Canada will tax all your income. If you don't have ties in Canada, you can claim non-resident in Canada for tax purposes. I think this exempts certain level of income from Canadian taxes (first ~70k, not sure exact number). Check CCRA website, they have detailed info on taxation of non-resident and qualifications to claim non-resident.
Quote:
Originally posted by hardeep3
Hello Everyone,
I just got my TN visa and moving to US. Can someone help me to understand how canadian taxation would work if I rent out my house and keep my bank accounts open?
Appreciate your help.
Hardeep.
