Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hi Allan,
If I along with my family move to USA and place my house on rent. Do I have to pay income tax in canada on my income earned in USA?
I would be having house on rent(which means that I have mortgage) and few my credit cards.
What is your advice. Thanks
Hi there,
Generally speaking, if you move to the US on a permanent basis and maintain no primary ties to Canada (house available for your personal use, children, spouse), then you are a non-resident of Canada and a resident of the US. As a non-resident of Canada, you must pay a non-resident tax equal to 25% of the gross rents collected, which you can recover by filing a Section 216 Return with the CRA. As a tax resident of the US, you are taxable on your global income, including net rental income (i.e. rents in excess of expenses). To avoid double taxation, claim a foreign tax credit as a reduction of your US tax liability in respect of the tax paid to the CRA (as per the 216 tax filing).