0

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?

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

identification and other information

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

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

information about your residence

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'

?

1

Does the income from the rental of your property mean you are still a resident of Canada for tax purposes? In itself, possibly yes. The property ownership possibly more so.

You might want to read stuff like this, including the links to other forms. It could help you gather knowledge about the area so you could make far better use of the time spent with the accountants and lawyers, who generally charge by time, by being better able to understand what they say to you, better able to ask intelligent questions to them, and generally not needing to get a basic course on the income tax act while the meter is running.

One thing you might need to know is that even if you did actually cease to be a resident of Canada for tax purposes in January 2020 then at that moment your residence would have ceased to be your principal residence and the fair market value of the residence at that point would be the cost base for the determination of capital gains when the residence is disposed, either by sale or, upon your death, by a deemed disposition.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

https://ca.rbcwealthmanagement.com/documents/1435520/1435536/Determining_your_tax_residency_status_in_Canada_05172018_email.pdf/9ff73a9f-af5c-4cb4-8860-070050ac23e0

https://www.hutcheson.ca/severing-ties-with-canada/

1
  • Thanks,yes I've read a lot already to try to make the best of my time with the accountants/lawyers, but I haven't seen all of the pages you've linked to, and will read through them to get better informed. Regarding the property I own, what I've read is that if it's not available to me to dwell in, and is leased to another party who I have an arms-length relationship with, then it may be possible to still be deemed a non-resident while owning the property. Apr 12 '20 at 2:08

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.