Non-resident investing in Canadian Real Estate
We advise non-residents of Canada investing in Canadian real estate, particularly in the Greater Vancouver and Whistler areas. From pre-purchase planning to ensuring that annual tax returns get filed on time, we provide peace of mind.
Services for Non-Resident Individuals Investing in Canadian Real Estate
We currently advise over 400 non-resident clients who own rental properties in British Columbia, Canada, many in resorts throughout B.C.
Over the years, we have assisted hundreds of clients with planning, reporting and helping to minimize Canadian tax on their Canadian rental investments and subsequent disposal. We would be delighted to use our experience in assisting you with the planning of your investment in an orderly and tax efficient manner.
The following are the services that we provide:
________________________________________
Legend
* – these tasks are either optional or may not be required in your case
# – these tasks are mandatory.
________________________________________
Income tax
Acquisition
• Advising with respect to appropriate structure *
• Advising with respect to possible income splitting *
• Preparing estimated cash flow statements on purchase and annual rental operations *
• Determination of optimal amount of loan to minimize Canadian income tax *
• Coordinating with your realtor #
• Coordinating with your lawyer #
• Coordinating with your property manager #
• Determining the applicability of the treatment of income as business income vs. rental income *
• Advising with respect to the advantages and disadvantages of optional filing methods (e.g. NR6) *
• Calculating the Adjusted Cost Base of land, building and furniture #
• Applying for a Non-Resident Remittance Number *
Annual
For rental income:
• Preparing and filing the optional form NR6 and estimated income statement *
• Preparing and filing form NR4 (Statement of gross rental revenue and taxes withheld) (normally done by property manager)*
• Capitalizing interest and / or other expenses to the cost of property to reduce future tax, if applicable *
For business income only
• Preparing and filing the Regulation 805 waiver application #
For both:
• Preparing and filing the T1 personal tax return, including preparing rental income statements and obtaining relevant information (e.g. from property manager, from owner, from bank, etc.) #
• Coordinating and replying to requests for information and other review or audit requests by Canada Revenue Agency (“CRA”) *
• Receiving, reviewing and forwarding correspondence from CRA #
Disposition
• Estimating income tax on capital gain *
• Preparing request for Certificate(s) of Compliance (for land and for building, including allocations thereto) and arranging payment of estimated taxes to CRA and delivery of Certificates to lawyer #
• Preparing and filing the T1 personal tax return to report gain on sale and apply for income tax refund, if applicable #
GST/HST
Acquisition (for properties rented nightly)
• Advising with respect to GST/HST implications on purchase and operations of commercial rental property *
• Registering for GST/HST with CRA #
• Coordinating with the property manager regarding payment of GST/HST on rental revenues #
• Preparing and filing the GST/HST506 election form, if required *
• Discussing waiver of GST/HST on purchase *
Annual
• Calculating, preparing and filing of annual GST/HST return, including applying for a refund if waiver not obtained on purchase #
Disposition
• Preparing and filing the final GST/HST return #
• Cancelling GST/HST #
We will advise you which tasks are applicable and /or recommended in your circumstances
For more information, please contact us.