rented propert in home country

[Abdu]

Guys! I landed in canada five months ago. I have an apartment under construction and I am planning to rent this property. I did not declare yet to CRA becuase I did not that I have to. Do I have declare despite the fact that it is under construction? would CRA fine me for not declaring till now?


I really appreciate an advice

 

[steaky]

If you are not receiving income from this property yet, you don't have to declare and include it in your tax return.

 

[Jonboy]

Guys! I landed in canada five months ago. I have an apartment under construction and I am planning to rent this property. I did not declare yet to CRA becuase I did not that I have to. Do I have declare despite the fact that it is under construction? would CRA fine me for not declaring till now?


I really appreciate an advice

You are OK at the moment. However, if the apartment cost you $100,000 or more you must file a T1135 by April 30th, 2012 and every year thereafter, as long as you own it. If you don't they can fine you $2,500 a year.

 

[toby]

You are OK at the moment. However, if the apartment cost you $100,000 or more you must file a T1135 by April 30th, 2012 and every year thereafter, as long as you own it. If you don't they can fine you $2,500 a year.

Jon:

Are you saying that the tax-resident need not declare offshore assets of more than $100,000 in the first tax return? When I look at the personal tax return, I don't see any exclusion for year one; I just see the box to check if assets are $100,000+

Is this exclusion for year 1 in the Act?

 

[Jonboy]

Jon:

Are you saying that the tax-resident need not declare offshore assets of more than $100,000 in the first tax return? When I look at the personal tax return, I don't see any exclusion for year one; I just see the box to check if assets are $100,000+

Is this exclusion for year 1 in the Act?

I am not sure where in the ITA it says this. I am just going from the instructions on page 2 of the form itself.

http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf


As an individual (other than a trust) you do not have to file this statement for
the year in which you first become a resident of Canada.

It makes sense as an exclusion otherwise there would be thousands of new residents filing irrelevant forms each year.

 

[toby]

I am not sure where in the ITA it says this. I am just going from the instructions on page 2 of the form itself.

http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf


As an individual (other than a trust) you do not have to file this statement for
the year in which you first become a resident of Canada.

It makes sense as an exclusion otherwise there would be thousands of new residents filing irrelevant forms each year.

Does this form apply to inbound granny trusts too? That is, does the beneficial owner declare these assets for the first 5 years of `tax holiday`?

 

[Jonboy]

Does this form apply to inbound granny trusts too? That is, does the beneficial owner declare these assets for the first 5 years of `tax holiday`?

I believe so. There have been a lot of changes recently to the taxation of non-resident trusts and I am not completely up to speed with all the new rules. However, I believe immigration trusts and inbound granny trusts still work. As long as the trustees remain non-resident and any cash you receive is from the capital of the trust there will be no tax payable in Canada. So there is no real downside to reporting your beneficial interest on a T1135. It is certainly easier than trying to argue with the CRA if they issue penalties for not reporting it.

 

[toby]

I believe so. There have been a lot of changes recently to the taxation of non-resident trusts and I am not completely up to speed with all the new rules. However, I believe immigration trusts and inbound granny trusts still work. As long as the trustees remain non-resident and any cash you receive is from the capital of the trust there will be no tax payable in Canada. So there is no real downside to reporting your beneficial interest on a T1135. It is certainly easier than trying to argue with the CRA if they issue penalties for not reporting it.

Thanks.