Canadian Realestate | ExpatWoman.com
 

Canadian Realestate

461
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EW EXPLORER
Latest post on 16 October 2011 - 09:33

Good morning Canucks,

Curious if any of you are up to date on the rules on owning revenue properties back at home? We own one (rental house) and are thinking of buying a second. I've heard one person say as non residents we can only own 1 then recently heard that number change to 3 properties.

Obviously we don't want to make Harper and his thugs angry!

Thanks for the help!

2262
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EW EXPERT
Latest post on 17 October 2011 - 09:39
welcome ladies. Just remember this is a Chartered Account firm not an accountant and the cost will reflect that :) I do believe the initial questions you ask are free though :)....he will schedule a phone conference with all the information, questions etc so make a big list as the time duration of the call will / can be an hour :)
461
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EW EXPLORER
Latest post on 16 October 2011 - 18:09
thanks for the information. Yes, looks as though we were given wrong or mostly wrong information.
177
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EW NEWBIE
Latest post on 16 October 2011 - 18:09
Thanks so much Sue!
2262
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EW EXPERT
Latest post on 16 October 2011 - 17:43
Absolutely :)... His firm has an excellent reputation and we are pleased so far with his service to keep us in line lol Arun (Ernie) Nagratha, CA, CPA TROWBRIDGE PROFESSIONAL CORPORATION CHARTERED ACCOUNTANTS | TAX ADVISORS 25 Adelaide Street East, Suite 1400 Toronto ON M5C 3A1 phone: 416.214.7833 ext.102 fax: 416.214.1281 web: www.trowbridge.ca Tax Services For Canadians Around The World Trowbridge is an independent member of the Global Tax Network www.globaltaxnetwork.com Any Canadian and/or U.S. tax advice contained in the body of this e-mail was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Canadian Income Tax Act, the Internal Revenue Code or applicable state or local tax law provisions.
177
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EW NEWBIE
Latest post on 16 October 2011 - 17:18
I agree with what Sue says - any rent that you receive for a property is considered income...and the NR4 is required of all non-residents with rental properties. The fact that you are taking a loss (due to the current market for us we are also taking a loss each month) will come to play when you file your tax return. Then, the mortgage interest, maintenance costs, management fees, etc can be deducted to determine if you receive a refund from the % you pay from your NR4 every month. Sue - are you willing to share the contact details of your CA in Toronto with us? Our properties are all in ALberta, but we aren't too impressed with our Calgary firm and are hoping to find someone who is well versed in non-resident issues, etc that we deal with.
2262
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EW EXPERT
Latest post on 16 October 2011 - 16:39
not sure who gave you that information but they are wrong in regards to not reporting because of a loss. When you got your NR4# you told RC what rent you were charging, they then told you what you had to pay each month. You still have to send the % into RC regardless. When you do your income tax at the end of a year or 2nd year you could get a refund, or not, depends on what it balances out to be. Now you can submit the NR6 once a year which I understand is the old way and pain the the royal rear. We submit for 2 properties each month...one is under reno so have not rented yet and the other send every month as long as there is a renter. If the property is not rented you dont remit. You want to err on the side of caution, get your # if you dont have one, remit whatever the amount is while it is rented. Our CA is in Toronto. Not sure what province you have the property in so cant help there :)... btw, you mentioned you are taking a loss by choice. Hopefully it is within market value for your area and not a very low difference for what that property would rent for in your area. <em>edited by SueB on 16/10/2011</em>
461
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EW EXPLORER
Latest post on 16 October 2011 - 13:33
Thanks for the note! At present we are taking a loss on our mortgage by choice and top up the rent/mortgage for monthly payments. Apparently because we are taking the loss there is nothing to report to the government. I suppose if you're making an income or profiting from the properties then you have to report it. We re looking for a good accountant/property manager. Any chance you want to share that info? If not I understand. We too have been expats for quite sometime just don't want to jeapordize anything....the great salaries we have here!
177
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EW NEWBIE
Latest post on 16 October 2011 - 13:16
We own 3 revenue properties in Canada. I was never aware that there were ever limits on the amount - as long as you are declaring the income and paying the taxes. Our accountant has never said anything either, but I'm not sure if it's because we only have 3...but we've been non-residents for years and have never had an issue. We have our properties professionally managed and a % held back and sent to the government each month (as is required of non-residents). None of our properties have ever been our residence, they were all purchased strictly as revenue properties (I know that sometimes that can be an issue in regards to Revenue Canada considering you a non-resident or not.
 
 

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