Sue Wastell, Special to Postmedia News
As most of us know, the real estate market in Ontario has changed over the last few years with the arrival of more buyers and investors from outside of Canada.
Some of these buyers may split their time between living in Canada and another country or have family living in both Canada and another country, which can result in them being deemed as a non-resident for tax purposes. This status makes them subject to different taxation rules than residents.
If you’re a resident of Canada, you have to pay tax in Canada on your worldwide income — meaning any income earned either inside or outside Canada. Non-residents of Canada, however, are required to pay tax in Canada only on income that is earned from a Canadian source. Employment income, income earned from a business carried out in Canada and capital gains earned on Canadian real estate must be reported on a Canadian tax return and are subject to the payment of tax to the Canadian government.
Image. Monster Construction.
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