Owning rental property is a lucrative investment, especially because you can use it for your own vacations. Property in another country might be even more attractive to you because then you can get away when you need to and make an extra dime when you don’t. If you own rental property in Canada and are a non-resident of Canada, there are some things you need to know about taxes to keep your property legal.
The non-resident tax in Toronto, Ontario and other Canadian towns is what you need to pay on your rental property if you’re the owner. You’ve already paid the taxes associated with the initial sale, but now you need to stay on top of the non-resident tax. This can be a challenge on your own. The non-resident tax requires a slew of different forms and certificate to be filled out to properly be paid.
It’s highly recommended that you contact professionals to help you through the process of your non-resident tax. Even if you’re an accountant yourself, you might not be familiar enough with Canadian process to complete this tax on your own. Lucky for you, there are plenty of knowledgeable accountants in Canada who are happy to help.
Make sure you collect all of the documents relevant to your property before making the trip to visit the professionals. The last thing you want to do is travel to Canada and then realize that you forgot a vital document back in your home country.
It’s recommended to see professionals in person rather than only deal over the phone, because then you can get a better gauge of whether or not they’re trust worthy. After the initial visit, you may decide to conduct your business from your home country.
You love your Canadian rental property. Getting out of your home country for a while and visiting Canada is a nice, relaxing time. Earning money when you’re not there is even better. However, you need to keep things legal to keep them happy and relaxing. Paying the non-resident tax with the help of a professional is the way to do just that.
If you need help with the non-resident tax in Toronto, Ontario, contact The Taxperts Group.