Canadian living and working in UK with rental in Canada - NR6 NR4 T1159 T776 -


Hello,
Just a question ....My son is working and living in the u.k. and paying tax there. He owns and rents out his apartment here in Vancouver, and still maintains bank accounts  here etc.
What shoud he do no re: filing a return here and is he double taxed? He will be in the U.K. for maybe a few more years. He maintains dual citizenship. What should he do at tax time?

Thank You, 
xxxxxxxxx 
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david ingram replies:

In Canada, you fill in and have an agent sign a form NR6 BEFORE  you rent out the condo.  This form must be filled in before the start of every new year.  If you did not file one for 2008, you should do so immediately.  Then you must file a Sec 216(4) return (form  T1139) and a T776
to report the rent and any depreciation by June 30th.

NR6 at - http://www.cra-arc.gc.ca/E/pbg/tf/nr6/nr6-06e.pdf

NR4 (fillable) at - http://www.cra-arc.gc.ca/E/pbg/tf/nr4_flat/nr4-fill-07b.pdf

NR4-Summary (fillable) at - http://www.cra-arc.gc.ca/E/pbg/tf/nr4sum/nr4sum-fill-07b.pdf

T1159 at: - http://www.cra-arc.gc.ca/E/pbg/tf/t1159/t1159-07e.pdf

T776 at: - http://www.cra-arc.gc.ca/E/pbg/tf/t776/t776-07e.pdf


Your agent must also file form NR4 to report the gross rents received and any tax remitted by March 31st.

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Then this rent must be reported on his UK tax return.  any tax paid to Caanda can be claimed (on a pro-rata basis) as a foreign tax credit on his UK return.
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On February 11, 2008, David Ingram wrote:

It is very unlikely that blind or unexpected email to me will be answered.  I receive anywhere from 100 to 700  unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject line and get answered first.  I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when I am out of town. 
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However, I regularly search for the words"PAYING CUSTOMER" and always answer them first if they did not get spammed out. For the last two weeks, I have just found out that my own email notes to myself have been spammed out and as an example, as I wrote this on Dec 25, 2007 since June 16th, my 'spammed out' box has 47,941 unread messages, my deleted box has 16645 I have actually looked at and deleted and I have actually answered 1234 email questions for clients and strangers without sending a bill.  I have also put aside 847 messages that I am maybe going to try and answer because they look interesting. -e bankruptcy expert  US Canada Canadian American  Mexican Income Tax service and  help
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Phone consultations are $450 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada. ($472.50 with GST if in Canada) expert  US Canada Canadian American  Mexican Income Tax  service and help.
This is not intended to be definitive but in general I am quoting $900 to $3,000 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
 
$1,200 would be the same with one rental
 
$1,300 would be the same with one business no rental
 
$1,300 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
 
$1,600 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out

$1,700 would be for two people with income from two countries

$3,000 would be all of the above and you moved in and out of the country.
 
This is just a guideline for US / Canadian returns
 
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $200.00 up.
 
With a Rental for $400, two or three rentals for $550 to $700 (i.e. $150 per rental) First year Rental - plus $250.
 
A Business for $400 - Rental and business likely $550 to $700
 
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
 
Moving in or out of the country or part year earnings in the US will ALWAYS be $900 and up.
 
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
 
8891 forms are generally $50.00 to $100.00 each.
 
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
 
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.

Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be from $150 to $600.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc. Note that these returns tend to be informational rather than taxable.  In fact, if there are children involved, we usually get refunds of $1,000 per child per year for 3 years.  We have done several catch-ups where the client has recieved as much as $6,000 back for an $1,800 bill and one recently with 6 children is resulting in over $12,000 refund. 

This is a guideline not etched in stone.  If you do your own TDF-90 forms, it is to your advantage. However, if we put them in the first year, the computer carries them forward beautifully.
 
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