Sign up for my upcoming webinar with the SHARE team on Feb 29th, 2024 where we will be discussing How to Create $10K Monthly Cash Flow in U.S. Real Estate Investing for Canadians: www.therealestateaccountants.ca/share-yto
Given how much igorance is being expressed about tax in the replies to your video, it is no wonder that so many people get scammed 😂 Not sure that your attempt to educate them had much effect, since half of them did not seem to understand what you were talking about.
@@Jigger2361 why are you so triggered because of people doing whatever they are FREE to do? Last time I checked our veterans fought to keep the west “the free world”. Second: Canada pension is terrible. You couldnt live out of it anywhere lol, so if you think people come here for the pension given the amount of taxes we pay you’re delusional.
That’s an amazing video. So, besides taking almost 50% of your monthly income during your working years… when is time to retire and you realize you can’t survive in Canada then Canada still wants 1/4 of all you have… crazy greedy.
The tax burden in Canada is HUGE. Take a detailed look at ALL the taxes we pay in Canada (at ALL levels). We never have a party running on a platform to REDUCE taxes by increasing efficiencies and reducing costs. Instead, it's all about government spending more, then taxing more. So you work to get taxed on earned income, then more tax due when these savings are invested. Canada = Land of Taxation. Best country on Earth to pay taxes.
Do not FEAR what they tell you, continue to live your life to the fullest and not look back. Your life is yours. They only look for their financial gains
Don not fear what they tell you but believe them when they tell it to you and if you go through life not looking back then something from your back is going to come up and stab you in the back just when you think you are almost there.
I hate this version of Canada… never in my life did I dream it could be so corrupt. I dream of leaving everyday. Frankly, in the past I didn’t mind paying taxes, and as a high net worth entrepreneur the amounts are significant. Recently every dollar I send these people makes me complicit in their corruption. It makes me sick to my stomach to participate. I can’t believe what my beloved country has become.
If you like to save money, don't sell/dispose of everything in the last year (nonresident year). Start selling/disposing of assets a year or two before departing.
Yeah billionaire Grant Cardone drains all his bank accounts close to 0 eveytime and looks on paper a broke homeless guy every dollar is invested in commodaites, stock Market or properties, so he likley keeps loose cash around un traced for day to day expenses.
@@Tugela60 This is why rich people always move their money abroad because when it is time to go it is time to go. Move the money to a country with lower taxes or no taxes and then you buy all your assets their so one place would be Monaco per say. They don't have income tax and I am sure the capital gains tax there would be minimal if they had one so you buy all your assets there in the other country. All after tax income that is discretionary is moved there immediately after being earned. When you leave you just leave. Don't even bother trying to own anything here, just rent the house and lease the car. Even better if you have parents just stay with them and devote even more money to moving abroad. The other way would be to open a trust and own nothing legally and then you just become a beneficiary of the assets you assign to the trust to own. House, stocks, bonds, rental properties give it all to the trust. If you legally own nothing you have nothing to tax.
i own nothing in canada , i put all my possession into a shipping container and sent it ,,,elsewhere , no income but pensions .Also recieved my tax forms from revenue canada .
So many people posting here seem pretty clueless about tax. The departure tax only applies to capital gains and other monies that have deferred tax, such as RRSPs. It is tax you would have to pay anyway, and since you are closing off your accounts on departure, you pay it then. Every country does this, not just Canada.
Just to make sure I understand you correctly: if I still hold non-registered mutual fund investments, RRSP, TFSA and draw OAS and CPP, and have no foreign source income, BUT I sell my primary residence well before I leave the country, can I still remain a Canadian tax resident even though I don't have a house here for me to return to?
i just found your channel today!! great content! thank u. best for my situation. as an immigrant who married canadian born. i plan to move back to my Thailand if i outlive my husband. i have listened to many youtubers about this subject. you by far the BEST 👍. subscribed
Very well done video. If anyone rents in Canada make sure to ask if owner is a Canadian. Many tenants were stuck with taxes for non resident which left Canada on top of rent. A tenant must send 25% to CRA monthly if landlord didn't do so. I heard many tenants stuck with over $40,000 of taxes owed to CRA on top of rent. I feel bad for these tenants.
> If anyone rents in Canada make sure to ask if owner is a Canadian But Canadians can live abroad. That's the point of the video. I think you meant to say "make sure to ask if the owner has Canadian tax residency."
that sounds like a complete rip off by CRA. If they make the renters pay the remittance (that is tax on profits) but this is rent they themselves pay, it's not profits ; then the renters should be given the ownership too.
Since when does the CRA go after tenants for unpaid taxes? Like unpaid income tax? Because property tax is not under the CRA it falls to municipalities. So which taxes exactly did the CRA make tenants pay? The story you claim to have heard sound like a bunch of hogwash 😂
In 2004 I wrote a somewhat famous article called 'Top 8 reasons not to immigrate to Canada'. In short, the Canadian authorities tried to destroy my life. They made it so that I could not be employable in Canada. So I moved to the U.S. in 2005 and then some years later I moved permanently to the Philippines. I am happy that so many years later videos like yours are saying essentially the same things that I did. I was ahead of my time. I will never go back to Canada. Not to live, not to visit, not even a connecting flight. Too cold, too expensive, taxes are astronomical, no culture, no freedom, no jobs, no opportunities, only modern slavery, worst healthcare system, unbearable political correctness, crime infested/drug infested, xenophobic people, too depressing. It has become a North Korea style dictatorship in the western world. There are many reasons why Canada has fallen apart. But the number one reason is ‘multiculturalism’. My friends, multiculturalism simply does not work. Different cultures do not come together and mix, different cultures come together and clash. The world is divided into different countries for a reason: because people hate each other and only want to be with their own kind. The number two reason for Canada’s demise is ‘socialism’. In this modern era of aging populations, it is mathematically impossible for socialism to continue. The government does not have the money to take care of old people and provide healthcare, pensions, welfare, unemployment benefits, disability benefits and the numerous other programs, even with the astronomical taxation that burdens hard working Canucks. Well Canada, you had a good run. Time for Canucks to move to an emerging country. We welcome you here in Southeast Asia. Multiculturalism destroys the fabric and identity of a country. Socialism bankrupts a country.
Wow : someone who speaks the same language as I do. This comment should be printed off and framed. I need to leave Canada I need help this country is so far done . Everything you’ve mentioned is literal gospel
Well I ask lots of bluk bluckers ( Filipinos) why they left blucker land ( blucking and cluck clucking is how Tagalog sounds) and they all say for a better life……so…who do I believe?!?
Great video Cherry, so what are the tax implications or how much tax will be needed to pay if someone works outside of Canada but still maintains everything which is opposite of declaring non-residency?
Chances are you will have to pay tax where you are earning your income from, and then report that income on your Canadian return. It's best to schedule a consultation and discuss your situation in detail.
Depends on whether that country has a tax treaty or not. Usually you deduct the tax paid in the foreign jurisiction and pay the balance of what otherwise would be due on your Canadian filing.
Also I recommend that you guys speak about the unfair property tax in Canada, calculation of property tax should be divided into two category, investment and own use
@@highspeeddream3980yes, as a homeowner you get a rebate on property tax for your principal residence. So it is 2 categories. What are you talking about?! 🤔
@@aaykay4060 hi, I don't know too much about Canada tax system, if you don't mind can you tell me how to get rebate on property tax for my principal residence, I owned a house and living there rather than make money from that house, but the property tax is very high, I feel is not not fair, thanks !
Wow very informative. Thanks. Quick question: Canadian citizen with ties to Canada (parent,banking,investments and more) and filing Canadian taxes annually but wishing to live abroad ... you maintain your Canadian tax status,file annually on investment income but otherwise free to live abroad?
If you earn an income abroad you need to file for that in Canada. And if you spend 183 plus days outside of Canada, that may contradict your claim of Canadian ties. It would be up to CRA to determine your tax residency status
Great video Cherry. Lots of useful tips, and information. Quick question however that you mentioned but didn't go into detail on: Foreign owned properties. If you buy your new home before you leave (so you have a place to move to) how can anyone figure out the deemed disposition price? In North America there are real estate databases, but in SE Asia, Latin America and elsewhere there's no such thing, and I doubt even I could figure out what a change of price is with any confidence without actually selling it, which of course wouldn't make sense. So how can the CRA establish Capital Gains amount? Any insight you can share on what CRA's methods are?
I didn't see the implications of keeping a checking account and credit card. Are those alone enough to make you tax resident? Same question regarding non-registered accounts...
Ok my question is , as being citizen if i own nothing, nothing in my bank account, all i have is canadian passport and a drivers licence , will i still have to pay tax if i leave canada permanently?
@RealEstateTaxTips so if I would cut my ties with canada and become a resident in the philippines. Interest earned from a Canadian investment taxable in canada still right? 25% withholding and then taxed at regular amount at end of year??
@@RealEstateTaxTips Don't be. I'll be very happy to not live here for my older days. There is no life here, regardless of you age and it is not about the money.
Thanks for preparing Very informative videos. I was just wondering if you have any video on tax implications for receiving inheritance from abroad or with in Canada? If not , can you prepare on this topic too ? Thanks Andy
Canada does not pax inheritance, they tax the estate. In other words: the total value of the deceased (the estate) are calculated. The taxman takes his share and the inheritance can be divided however you want without tax for the receivers. (not sure if it's the same if the deceased is not a Canadian Tax-resident).
How do they track your movements in and out of Canada? Most countries check and stamp your passport upon exit. Canada does not. They only check when you enter.
This is an excellent video. I am glad you went into detailing assets like privately owned corporations. My conclusion is that for my particular situation, it would be financial suicide to try leaving Canada. I am stuck. But, it's not necessarily so bad. Grass is hardly ever greener somewhere else. There are always pros and cons. There's no perfect country. Instead of leaving, maybe we should just try fixing the problem here. Vote properly.
Canada is so damaged it would take decades of extremely rational governance to fix it. Vote for better policies is important but it won’t fix Canada in our lifetimes.
This is true and I think the same thing . All countries have pros and cons. But Canada has way too many cons my friend. The biggest one being taxes and liberal government. It keeps on getting worse. If we all had a chance to pick what country we live in (most of us are here cause we were born here) no one would ever pick Canada you’d be stupid to do so. There’s so many better options out there. There’s nothing attractive about Canada. Nothing. Not one thing that says “this is why I chose Canada”. Nothing. The taxes we pay aren’t worth it. The juice isn’t worth the squeeze. I can’t see how Canada is going to succeed. I’d never invest in Canadian stocks I think the economy is going to shit. We need a total government revamp. We need a trump. We need a man who’s going to budget and fight for the countries freedom. Liberals just throw money around to losers beggars and they bring in unskilled people who abuse the system. Just other day i saw Indian student on TikTok bragging about how he takes advantage of the food banks for free food. It’s a clown town here in Canada. I don’t think any new leader could ever mop up the mistakes made over the last 8 years of Trudumb. The sad part is I work so hard to get ahead and the government keeps stealing your freedoms and money. All for the losers to take a free government cheque each month. Too liberal doesn’t work.
@b-rare I gave you thumb up on your comment. It's impossible to disagree. However. I came to this country 40 years ago from communist country. It was great to be here. Now ,Canada has become communist country, and my country of birth is more free and doing well. Conclusion. You move somewhere else, and you never know what's going to happen there in the next 10 years. But I know what you are saying. It's a sad reality here. I loved my adopted country. I am Canadian. I still love Canada. But I love 1985 Canada. I love 2024 Canada, much less. If you know what I mean. I made good money here, but it's painful to watch liberals destroying this country.
When you own many homes and have capital it’s such pain to deal with this 😢 when we moved away from Canada to California we need to pay over 100k departure tax and get taxed again in California. I was thinking about moving our rental into a corporation when I was in Canada. Glad I didn’t do it to create more trouble when leaving
Yes - moving to States definitely doesn't help (not from the tax perspective). Some countries only tax you on the income you earn in that country. Not the states.
@mitchieyy The US does. State taxes are separate, similar to provincial taxes in Canada. The difference between the two countries is that in Canada Revenue Canada collects the tax on behalf of the province, whereas in the US the IIRS only collects the federal portion. That can create complications of course, but at a minimum whatever tax you pay in Canada can be deducted from your federal return in the US. So, you might end up paying more state tax and less federal tax than you otherwise might, which should mostly balance out.
You should probably mention that persons with RE should get an official appraisal done on the RE price at the time of leaving canada. This will make tax matters more smoothly when determining canadian capital gains (if any), if you decide to sell the RE down the road.
So if you sold your home,,, gave back your license,,sell your car,,,is there a fee to transfer all your money to another country and would there be any fees/tax to pay prior to leaving
If you sell and report the sale on your tax returns, pay your Canadian taxes, then there's no "fees" other than maybe some bank fees to transfer your cash somewhere else.
What happens to those people who sell everything they have and then leave Canada and not file a tax return? Can the CRA have them extradited back to Canada?
Great video! Thank you, Confused about the "departure tax on real estate properties that are not in Canada" mentioned in the video; would it apply if it is a property that you bought as a main residence, before declaring that you are not a Canadian tax resident?
Excellent video Cherry. Please clarify the ongoing Canadian tax liability on pension income after leaving Canada. Also, would it be advisable to liquidate non-registered investments, pay CGT, then reinvest these funds from your new country of residence?
What about the opposite scenario? I have a fully remote job in Canada, and wanted to go back to Brazil for an extended period of time. Can I live outside of Canada for years and keep my job while paying Canadian income tax, contributing to my rrsp/tfsa, etc, as if I never left?
Your scenario requires a bit more information and you would really need to have a Residency Determination completed to determine if your are a Non-Resident or a Deemed Resident, as both have totally different reporting obligations. In order to better explain this to you I would advise you to schedule a meeting with my team.
I think you can as long as you keep following the residency obligation. Meaning that you can not be outside of the country for X-number of days per year (or per 5 year period.) Also, this may be different if one has a Canadian passport or 'just' a permanent resident card.
You mentioned principle residence is not taxed. Is a rental property that is sold, held in the owner's name, subject to capital gains tax when leaving Canada?
you don’t have to give tax to CRA if you are paying tax in another country. The tax can’t be charged twice specially when both countries share tax data. In US it’s different. You have to pay US taxes wherever you are working in the world.
Great video , thanks Have a question, so let’s say I withdraw from RRSP the year I become non resident, FI will hold 25% tax and then I fill taxes for that year ( counting that RSP amount as my income for that year) and get some tax refund considering I am treated as a resident for the tax calculation. Is this understanding correct? You also mentioned 217 form, what is that , please share. Thanks a lot
If you own shares that you purchased in Canada and you pay the tax on the difference in value via the date you leave the country providing it's a positive amount, when you finally decide to sell the shares do you still have to pay the tax on your total earnings despite the fact you've already left the country and no longer are a tax resident. Sorry if that's not worded very well.
I'm retired and living in Thailand now for over a year. I have no ties at all in Canada. No wife, car nor property. My only bank account in Canada is the one where my pension is deposited. Am I obligated to report any money made in Thailand?
Please do another video about being a non tax resident .. When I own a rental property, would I convert my citizen ship before selling , during selling, or after selling, how long will it take to convert, what are all pay backs ext…..
Regarding the T1243 form, what do you fill out if all I have are excluded items? Just registered accounts. Do I just fill in my info on the top and leave bottom portion empty ?
If you move to a country with a tax treaty with Canada the taxes you pay on Canadian sourced income can be as low as 15%... Mexico is a prime example. CPP, OAS, work pension and regular (same amount) RRSP withdrawals only attract 15% income tax from Canada and 0 from Mexico.
There are lots of TH-cam videos on this topic, and this video is particularly well done. However, like all the others, it focuses on reasons for and methods for avoiding tax residency in Canada. I have the opposite problem and no one is helping! I want to qualify for pension income splitting! How does CRA define residency for that purpose?
@@tayruong5395 hey yay, if it is something specific, I always encourage people to find a professional accountant to discuss your specific situation. If you don’t currently work with one, my team and I can help. Feel free to call us at 416 548 4228 to set something up
Great topic! Thanks for making a video on this. QQ - Say if someone becomes a US tax resident (non canadian resident), can the 25% withholding from RRSP on withdrawal with adjusting with the income tax in the US?
Ask my single mom with 4 children tenant if I'm providing housing. Ask my veteran family of three (mom has MS and dad has disability) tenant if I'm providing housing.
What if you liquidate everything you own before deciding to become a non tax resident of Canada. Do you still need to pay a departure tax on the cash you're taking out?
As long as you have paid all the tax due on your previous transactions, no. The departure tax is essentially the same as the taxes due on winding up an estate after someone dies. All assets are deemed disposed of, meaning any tax due on capital gains based on fair market value or closing down an account with deferred tax, such as an RRSP, are due immediately.
You'd pay capital gains on whatever you liquidate, which is basically the same as departure tax. Different name, same cost. The main difference is you would choose when to liquidate which might increase or decrease your costs.
What about if you run a services business with majority time in another country (after exiting) with a business registered in another country, but your clients are Canadian?
In addition, as far as I understand, you wouldn't be able to claim pension tax credit, age tax credit (if you are over 65), medical expenses tax credit, and your tax free base amount would be lowered from 15K to 12K. I am not professional, so you may want to double-check that. The bottom line is Canada loves you, and they want you here.
@RealEstateTaxTips Actually, it seems like this is not a bad solution. The question is, if I live somewhere else, how is my tax return done (or my holdco) if I don't have Canadian address ?
I am planning to move to New Zealand for few years next year and apply for dual citizenship. Do you suggest I sell all my shares and also sell out my rental property before leaving🤔 only thing I heard I can keep open is RRSP 😏
the only thing that can offset a capital gain is a capital loss. Easy Peasy. They don't have to be in the same tax year. I don't recall how long you can hold a capital loss, the rules change and I've been out of the business for a while, but I think it's 10 years. Check with your accountant. The loss doesn't have to be in the same capital category.
This is very informative! Can't we keep the Real Estate investments and also be non-tax resident Canadian and eventually living in another country? Thanks
3 etf index funds, that's an asset. You trade etf funds like stocks. For income tax purposes, it doesn't matter if you incurred capital gains from selling stocks or etfs.
What the heck is CLA?? She keeps mentioning it through the whole video. I’m not accountant, so I guess it’s no surprise that I’ve never heard of this before. This really shows me how much I don’t know about the Canadian tax system. I’m humbled
What if I stay a resident of Canada but live in a foreign county. Do I only pay federal tax then? Do I still get the TFSA yearly contribution room? Can I still claim the credit for eligibale dividends in my income tax? Thank you
When leaving Canada is it ok to exit while still having debt such as line of credit and CC’s open to pay off a few months down the line. Will it go against me if I do this?
I've come across so many cases that the staff at financial institutions encourage individuals to open TFSA without considering if they are Canadian tax residents or not
@@RealEstateTaxTips Wow that’s surprising. That wasn’t the case with IBKR though. They told me I can’t hold TFSA and RRSP if I plan to be a non-resident. Although I do think the gov’t allows one to hold RRSP, if I’m not wrong, just additional contributions aren’t allowed.
The big banks will allow u to hold brokerage account. And as a non resident ur allowed to hold RRSP and TFSA In not in the incentive for the Canadian government to force u remove all ur money outside of Canada. They have a high incentive to keep most of ur assets in Canada.
Sign up for my upcoming webinar with the SHARE team on Feb 29th, 2024 where we will be discussing How to Create $10K Monthly Cash Flow in U.S. Real Estate Investing for Canadians: www.therealestateaccountants.ca/share-yto
Given how much igorance is being expressed about tax in the replies to your video, it is no wonder that so many people get scammed 😂
Not sure that your attempt to educate them had much effect, since half of them did not seem to understand what you were talking about.
Oh shoot I missed it
Left Canada three years ago and living happy life in Netherlands ❤❤
why come in the first place? oh right, get yer pension then go home... that's why our vets fought to liberate Holland, so you could act like a moron
How is Netherland?
Can’t live without NHL CFL (NFL) & MLB
Succor wood drive me nutzzz
Are you a returning Dutchie or did you get a residential visa as Canadian?
@@Jigger2361 why are you so triggered because of people doing whatever they are FREE to do? Last time I checked our veterans fought to keep the west “the free world”. Second: Canada pension is terrible. You couldnt live out of it anywhere lol, so if you think people come here for the pension given the amount of taxes we pay you’re delusional.
That’s an amazing video. So, besides taking almost 50% of your monthly income during your working years… when is time to retire and you realize you can’t survive in Canada then Canada still wants 1/4 of all you have… crazy greedy.
Yes this is not a place where you can become wealthy or even begin to build wealth. It's repulsive.
@@ktp. Extreme Socialisms
You obviously don't know how to handle your finances.
Better just leave now then
Plus 25% of ur oas and cpp witholding tax even though u dont access any services of Canadian resident seniors who pay 15%.
The tax burden in Canada is HUGE. Take a detailed look at ALL the taxes we pay in Canada (at ALL levels). We never have a party running on a platform to REDUCE taxes by increasing efficiencies and reducing costs. Instead, it's all about government spending more, then taxing more. So you work to get taxed on earned income, then more tax due when these savings are invested. Canada = Land of Taxation. Best country on Earth to pay taxes.
Absolutely. None of the political parties are taking ownership on improving efficiencies. Sad.
Welcome to clown town
We now fund and participate in wars across the world.
Then leave, no one is forcing you to stay
@@fcf777 That's the plan .. . .. we plan to leave.
This is without a doubt the best financial /tax TH-cam video I have seen in many years.
thank you and glad it's helpful
I use to think so and I do think so but not when it become personal and they are making decisions as if they are in your bedrooms. Will explain later.
We left Canada for Mexico and it was the best decision we ever made. ♥️ Great video my friend thanks for sharing. 😊✌🏼
Thanks for watching. Glad you're enjoying Mexico.
So are you Mexican citizens now?
@@kornNpunk No we will only ever be temporary residents.
@@RealEstateTaxTipsbelieve Mexico is doing so good with the new system
@@ChecovloggsHave you kept track of the exchange rate?
Before Trudeau it was 15 pesos per loonie.
Right now it's 12.2 pesos per loonie...
Thank you so much! This shed a lot of light on the matters I've been considering!
Glad you found it helpful!
Do not FEAR what they tell you, continue to live your life to the fullest and not look back. Your life is yours. They only look for their financial gains
Don not fear what they tell you but believe them when they tell it to you and if you go through life not looking back then something from your back is going to come up and stab you in the back just when you think you are almost there.
@@MaxPowersCFBthe message is more about living on your own terms and not giving in to fear propaganda and "what ifs"
@@SupraSavthe tax man doesn't care what you think
These rich mjke me sick
I hate this version of Canada… never in my life did I dream it could be so corrupt. I dream of leaving everyday. Frankly, in the past I didn’t mind paying taxes, and as a high net worth entrepreneur the amounts are significant. Recently every dollar I send these people makes me complicit in their corruption. It makes me sick to my stomach to participate. I can’t believe what my beloved country has become.
It is sad - ArriveCan is one good example in front of us. What's going to happen to the entire scandal? Probably nothing at the end.
@@RealEstateTaxTips also, that software Fenix. Now they want to replace it with other software.
do you have a video advising on Canadians retiring abroad while maintaining Canadian ties to maintain OAS and other pension/benefits ?
A lot of countries have reciprocal agreements for government pensions. Check the Government of Canada website.
If you like to save money, don't sell/dispose of everything in the last year (nonresident year). Start selling/disposing of assets a year or two before departing.
Plan the big escape that’s the only way to do it
Yeah billionaire Grant Cardone drains all his bank accounts close to 0 eveytime and looks on paper a broke homeless guy every dollar is invested in commodaites, stock Market or properties, so he likley keeps loose cash around un traced for day to day expenses.
@@b-rare For real, it is like Alcatraz up in this bitch!
You will still be paying tax on the capital gains.
The departure tax only applies to the capital gain of your asset, not the entire value.
@@Tugela60 This is why rich people always move their money abroad because when it is time to go it is time to go. Move the money to a country with lower taxes or no taxes and then you buy all your assets their so one place would be Monaco per say. They don't have income tax and I am sure the capital gains tax there would be minimal if they had one so you buy all your assets there in the other country. All after tax income that is discretionary is moved there immediately after being earned. When you leave you just leave. Don't even bother trying to own anything here, just rent the house and lease the car. Even better if you have parents just stay with them and devote even more money to moving abroad. The other way would be to open a trust and own nothing legally and then you just become a beneficiary of the assets you assign to the trust to own. House, stocks, bonds, rental properties give it all to the trust. If you legally own nothing you have nothing to tax.
EEEEXCELLENT You are very THROUGHOUT AND detailed!!! BLESS YOU!!!
Thank you
This is EXACTLY the information I have veen looking for. Thank you. Love this post.
Glad it was helpful!
Very well done - thanks for posting this!
Thank you !
i own nothing in canada , i put all my possession into a shipping container and sent it ,,,elsewhere , no income but pensions .Also recieved my tax forms from revenue canada .
So many people posting here seem pretty clueless about tax. The departure tax only applies to capital gains and other monies that have deferred tax, such as RRSPs. It is tax you would have to pay anyway, and since you are closing off your accounts on departure, you pay it then.
Every country does this, not just Canada.
Some countries do not have capital gain tax.
RRSP can be deferred - no liquidation required at time of departure.
Anybody knows which bank holds RRSP for non tax residents ?
@@shakksaikia7643I heard Questrade
@@shakksaikia7643wealthsimple probably
One of the most factual, specific and helpful videos on this topic. Nicely done!
Much appreciated!
Just to make sure I understand you correctly: if I still hold non-registered mutual fund investments, RRSP, TFSA and draw OAS and CPP, and have no foreign source income, BUT I sell my primary residence well before I leave the country, can I still remain a Canadian tax resident even though I don't have a house here for me to return to?
That's a good question, I hope she covers this off.
I would also like to know the answer to this question
i just found your channel today!! great content! thank u. best for my situation. as an immigrant who married canadian born. i plan to move back to my Thailand if i outlive my husband. i have listened to many youtubers about this subject. you by far the BEST 👍. subscribed
Thank you !
Very well done video. If anyone rents in Canada make sure to ask if owner is a Canadian. Many tenants were stuck with taxes for non resident which left Canada on top of rent. A tenant must send 25% to CRA monthly if landlord didn't do so. I heard many tenants stuck with over $40,000 of taxes owed to CRA on top of rent. I feel bad for these tenants.
Oh wow, I didn't realize that could be a problem.
> If anyone rents in Canada make sure to ask if owner is a Canadian
But Canadians can live abroad. That's the point of the video. I think you meant to say "make sure to ask if the owner has Canadian tax residency."
that sounds like a complete rip off by CRA. If they make the renters pay the remittance (that is tax on profits) but this is rent they themselves pay, it's not profits ; then the renters should be given the ownership too.
Since when does the CRA go after tenants for unpaid taxes? Like unpaid income tax? Because property tax is not under the CRA it falls to municipalities. So which taxes exactly did the CRA make tenants pay? The story you claim to have heard sound like a bunch of hogwash 😂
I've heard of Property Manager's being held responsible for a non-resident landlord's taxes, but not a tenant.
What about a deemed non-resident who is working in a foreign country like the UK?
In 2004 I wrote a somewhat famous article called 'Top 8 reasons not to immigrate to Canada'. In short, the Canadian authorities tried to destroy my life. They made it so that I could not be employable in Canada. So I moved to the U.S. in 2005 and then some years later I moved permanently to the Philippines. I am happy that so many years later videos like yours are saying essentially the same things that I did. I was ahead of my time. I will never go back to Canada. Not to live, not to visit, not even a connecting flight. Too cold, too expensive, taxes are astronomical, no culture, no freedom, no jobs, no opportunities, only modern slavery, worst healthcare system, unbearable political correctness, crime infested/drug infested, xenophobic people, too depressing. It has become a North Korea style dictatorship in the western world.
There are many reasons why Canada has fallen apart. But the number one reason is ‘multiculturalism’. My friends, multiculturalism simply does not work. Different cultures do not come together and mix, different cultures come together and clash. The world is divided into different countries for a reason: because people hate each other and only want to be with their own kind. The number two reason for Canada’s demise is ‘socialism’. In this modern era of aging populations, it is mathematically impossible for socialism to continue. The government does not have the money to take care of old people and provide healthcare, pensions, welfare, unemployment benefits, disability benefits and the numerous other programs, even with the astronomical taxation that burdens hard working Canucks. Well Canada, you had a good run. Time for Canucks to move to an emerging country. We welcome you here in Southeast Asia.
Multiculturalism destroys the fabric and identity of a country. Socialism bankrupts a country.
Hahaha, we don't need you in Canada!
Wow : someone who speaks the same language as I do. This comment should be printed off and framed. I need to leave Canada I need help this country is so far done . Everything you’ve mentioned is literal gospel
Well I ask lots of bluk bluckers ( Filipinos) why they left blucker land ( blucking and cluck clucking is how Tagalog sounds) and they all say for a better life……so…who do I believe?!?
This is very true. Canada is done for.
So, Are you native Filipino? Since you are so against multiculturalism!!
Great video Cherry, so what are the tax implications or how much tax will be needed to pay if someone works outside of Canada but still maintains everything which is opposite of declaring non-residency?
Chances are you will have to pay tax where you are earning your income from, and then report that income on your Canadian return.
It's best to schedule a consultation and discuss your situation in detail.
Depends on whether that country has a tax treaty or not. Usually you deduct the tax paid in the foreign jurisiction and pay the balance of what otherwise would be due on your Canadian filing.
as accountants, I recommend that you guys should voice out some unfair tax law in Canada, such as foreign assets
Also I recommend that you guys speak about the unfair property tax in Canada, calculation of property tax should be divided into two category, investment and own use
@@highspeeddream3980yes, as a homeowner you get a rebate on property tax for your principal residence. So it is 2 categories. What are you talking about?! 🤔
@@aaykay4060 hi, I don't know too much about Canada tax system, if you don't mind can you tell me how to get rebate on property tax for my principal residence, I owned a house and living there rather than make money from that house, but the property tax is very high, I feel is not not fair, thanks !
Wow very informative. Thanks. Quick question: Canadian citizen with ties to Canada (parent,banking,investments and more) and filing Canadian taxes annually but wishing to live abroad ... you maintain your Canadian tax status,file annually on investment income but otherwise free to live abroad?
From tax perspective... I don't see a problem.
@@plexiglasscorn 😆
If you earn an income abroad you need to file for that in Canada. And if you spend 183 plus days outside of Canada, that may contradict your claim of Canadian ties. It would be up to CRA to determine your tax residency status
Don't tell them anything.
Great video Cherry. Lots of useful tips, and information. Quick question however that you mentioned but didn't go into detail on: Foreign owned properties. If you buy your new home before you leave (so you have a place to move to) how can anyone figure out the deemed disposition price? In North America there are real estate databases, but in SE Asia, Latin America and elsewhere there's no such thing, and I doubt even I could figure out what a change of price is with any confidence without actually selling it, which of course wouldn't make sense. So how can the CRA establish Capital Gains amount? Any insight you can share on what CRA's methods are?
I didn't see the implications of keeping a checking account and credit card.
Are those alone enough to make you tax resident?
Same question regarding non-registered accounts...
Ok my question is , as being citizen if i own nothing, nothing in my bank account, all i have is canadian passport and a drivers licence , will i still have to pay tax if i leave canada permanently?
I think you can contribute to your rrsp (given you have room) after departure as long as the source of income is Canadian. Can you confirm this?
No investment in TFSA or RRSP when u leave canada🎉
I've been trying to find this accurate info for a while. Thank you
Glad it was helpful!
@RealEstateTaxTips so if I would cut my ties with canada and become a resident in the philippines. Interest earned from a Canadian investment taxable in canada still right? 25% withholding and then taxed at regular amount at end of year??
Do I need to pay departure tax if I am going to live in Japan for two to three years, then return to Canada?
No
This is the video I’ve been wanting/needing… thank you!
Glad it was helpful!
Let’s make it easy, what you own give it to the government and leave.
And your OK with that and not mad another sheeple.
@@jonmacistI’m pretty sure @cherifbar was being facetious. It’s difficult to read “tone” on the internet.
Ok groomer, keeping my money enjoy the never ending downward spiral
@@stormforge68 well lets hope so.
@@jonmacistobvious sarcasm to me
I'll make sure I have nothing left here when I move out for forever. This country is sucking my blood.
I'm sorry to hear that
@@RealEstateTaxTips Don't be. I'll be very happy to not live here for my older days. There is no life here, regardless of you age and it is not about the money.
@@starchild890 all the best!
I've now interpreted "you'll own nothing and be happy" in a whole other, more realistic way!!
Chinada is a vampire, exactly how I see this country
Thanks for preparing Very informative videos. I was just wondering if you have any video on tax implications for receiving inheritance from abroad or with in Canada? If not , can you prepare on this topic too ?
Thanks
Andy
Canada does not pax inheritance, they tax the estate. In other words: the total value of the deceased (the estate) are calculated. The taxman takes his share and the inheritance can be divided however you want without tax for the receivers. (not sure if it's the same if the deceased is not a Canadian Tax-resident).
How do they track your movements in and out of Canada? Most countries check and stamp your passport upon exit. Canada does not. They only check when you enter.
This is an EXCEPTIONAL video! Such great info!
Thanks so much!
This is an excellent video. I am glad you went into detailing assets like privately owned corporations. My conclusion is that for my particular situation, it would be financial suicide to try leaving Canada. I am stuck. But, it's not necessarily so bad. Grass is hardly ever greener somewhere else. There are always pros and cons.
There's no perfect country. Instead of leaving, maybe we should just try fixing the problem here. Vote properly.
Lol
Canada is so damaged it would take decades of extremely rational governance to fix it. Vote for better policies is important but it won’t fix Canada in our lifetimes.
This is true and I think the same thing . All countries have pros and cons. But Canada has way too many cons my friend. The biggest one being taxes and liberal government. It keeps on getting worse. If we all had a chance to pick what country we live in (most of us are here cause we were born here) no one would ever pick Canada you’d be stupid to do so. There’s so many better options out there. There’s nothing attractive about Canada. Nothing. Not one thing that says “this is why I chose Canada”. Nothing. The taxes we pay aren’t worth it. The juice isn’t worth the squeeze. I can’t see how Canada is going to succeed. I’d never invest in Canadian stocks I think the economy is going to shit. We need a total government revamp. We need a trump. We need a man who’s going to budget and fight for the countries freedom. Liberals just throw money around to losers beggars and they bring in unskilled people who abuse the system. Just other day i saw Indian student on TikTok bragging about how he takes advantage of the food banks for free food. It’s a clown town here in Canada. I don’t think any new leader could ever mop up the mistakes made over the last 8 years of Trudumb. The sad part is I work so hard to get ahead and the government keeps stealing your freedoms and money. All for the losers to take a free government cheque each month. Too liberal doesn’t work.
@b-rare I gave you thumb up on your comment. It's impossible to disagree.
However. I came to this country 40 years ago from communist country. It was great to be here. Now ,Canada has become communist country, and my country of birth is more free and doing well. Conclusion. You move somewhere else, and you never know what's going to happen there in the next 10 years.
But I know what you are saying.
It's a sad reality here. I loved my adopted country. I am Canadian. I still love Canada. But I love 1985 Canada. I love 2024 Canada, much less. If you know what I mean. I made good money here, but it's painful to watch liberals destroying this country.
The longer you do stay, the more you'll have to give up so not worth it. Look at the condition of senior citizens?? No thanks!
ty for the info! Very useful.
Glad it was helpful!
Very timely. My husband is about to start work in the EU and we are considering how to deal with our property here.
@@acebaker3623 glad you find it helpful
Could you also cover pension implications province by province of leaving?
Thanks for your info ... I am leaving this place
All the best
Good video. You mentioned cash when discussing assets. From my understanding is that if you leave, there is no tax on cash?
When you own many homes and have capital it’s such pain to deal with this 😢 when we moved away from Canada to California we need to pay over 100k departure tax and get taxed again in California. I was thinking about moving our rental into a corporation when I was in Canada. Glad I didn’t do it to create more trouble when leaving
Yes - moving to States definitely doesn't help (not from the tax perspective). Some countries only tax you on the income you earn in that country. Not the states.
You left Canada to move to California!!?? That's hilarious.
If where ever you are moving to has a tax treaty with Canada, you will effectively pay the greater of the tax due for the two jurisdictions.
@@Tugela60 I wanted to move to California which unfortunately the date doesn’t not have treaty with Canada
@mitchieyy The US does. State taxes are separate, similar to provincial taxes in Canada. The difference between the two countries is that in Canada Revenue Canada collects the tax on behalf of the province, whereas in the US the IIRS only collects the federal portion. That can create complications of course, but at a minimum whatever tax you pay in Canada can be deducted from your federal return in the US. So, you might end up paying more state tax and less federal tax than you otherwise might, which should mostly balance out.
This is a very informative video. It has helped me understand the pros and cons very clearly and would help me make a wise decision. Thank you.
Great to hear!
You should probably mention that persons with RE should get an official appraisal done on the RE price at the time of leaving canada. This will make tax matters more smoothly when determining canadian capital gains (if any), if you decide to sell the RE down the road.
Thank you for this valuable information-God bless you.
Thank you for this detailed video
So if you sold your home,,, gave back your license,,sell your car,,,is there a fee to transfer all your money to another country and would there be any fees/tax to pay prior to leaving
If you sell and report the sale on your tax returns, pay your Canadian taxes, then there's no "fees" other than maybe some bank fees to transfer your cash somewhere else.
you getting taxed either way
If the second country starts recognizing you as a tax resident, are you automatically loosing tax resident status in Canada?
No unfortunately.
What happens to those people who sell everything they have and then leave Canada and not file a tax return? Can the CRA have them extradited back to Canada?
Hi Cherry great information
is there a tax professional in B.C. You can recommend please.
Thank you 🎉🎉🎉🎉❤❤
Hi! We handle taxes for those living in B.C. Please reach out to us if you need any tax help at realestatetaxtips.ca/contact-us. Thanks
Great video! Thank you, Confused about the "departure tax on real estate properties that are not in Canada" mentioned in the video; would it apply if it is a property that you bought as a main residence, before declaring that you are not a Canadian tax resident?
what an amazing video so informative, thank you so much. subscribing
Thanks for the sub!
Excellent video Cherry. Please clarify the ongoing Canadian tax liability on pension income after leaving Canada. Also, would it be advisable to liquidate non-registered investments, pay CGT, then reinvest these funds from your new country of residence?
What about the opposite scenario? I have a fully remote job in Canada, and wanted to go back to Brazil for an extended period of time. Can I live outside of Canada for years and keep my job while paying Canadian income tax, contributing to my rrsp/tfsa, etc, as if I never left?
Your scenario requires a bit more information and you would really need to have a Residency Determination completed to determine if your are a Non-Resident or a Deemed Resident, as both have totally different reporting obligations. In order to better explain this to you I would advise you to schedule a meeting with my team.
I think you can as long as you keep following the residency obligation. Meaning that you can not be outside of the country for X-number of days per year (or per 5 year period.) Also, this may be different if one has a Canadian passport or 'just' a permanent resident card.
any downsides for electing to remit 25% of net rental income rather than gross?
Downside is that you do have compliance work to do
It would be nice to make a video about mortgage payments ( mortgage interest ) and income tax.
Hi , I have done videos on this topic such as th-cam.com/video/RZreAaXTwTw/w-d-xo.html. Thanks!
I had thought that RRSP withdrawal withholding tax was 15%
You mentioned principle residence is not taxed. Is a rental property that is sold, held in the owner's name, subject to capital gains tax when leaving Canada?
Capital gains are only realized when you sell the property, so yes.
Excellent video, very informative . thanks
Glad it was helpful!
What happens if you just leave and dont say anything? I know a few that went on vacaton in the US and stayed.
you don’t have to give tax to CRA if you are paying tax in another country. The tax can’t be charged twice specially when both countries share tax data. In US it’s different. You have to pay US taxes wherever you are working in the world.
My word. Is this why they implemented the MAID program?
Because it helps many people and we demeaned it.
Most likely
Great video , thanks
Have a question, so let’s say I withdraw from RRSP the year I become non resident, FI will hold 25% tax and then I fill taxes for that year ( counting that RSP amount as my income for that year) and get some tax refund considering I am treated as a resident for the tax calculation. Is this understanding correct?
You also mentioned 217 form, what is that , please share.
Thanks a lot
If you own shares that you purchased in Canada and you pay the tax on the difference in value via the date you leave the country providing it's a positive amount, when you finally decide to sell the shares do you still have to pay the tax on your total earnings despite the fact you've already left the country and no longer are a tax resident. Sorry if that's not worded very well.
If shares are still held in your Canadian account - you'll have to pay the tax on any incremental gain from the FMV of the date of departure
Thank you for sharing this video, very useful information
Glad it was helpful!
I'm retired and living in Thailand now for over a year. I have no ties at all in Canada. No wife, car nor property. My only bank account in Canada is the one where my pension is deposited. Am I obligated to report any money made in Thailand?
🤫
technically yes if you haven't officially left Canada as a tax resident yet.
Hi. I just started your video but in the list of what ties one to Canada, I believe you forgot to mention any CPP income.
I've only mentioned the primary ties, not the secondary one. CPP Income is one of the secondary one
Please do another video about being a non tax resident .. When I own a rental property, would I convert my citizen ship before selling , during selling, or after selling, how long will it take to convert, what are all pay backs ext…..
At the beginning of this video, I already explained the difference between Canadian citizenship vs Canadian tax residency - two different things.
how long have you stayed? in whole (Canadians out of convenience)
Thank you, this is very helpful.
Regarding the T1243 form, what do you fill out if all I have are excluded items? Just registered accounts. Do I just fill in my info on the top and leave bottom portion empty ?
I am sorry but there isn’t anything here that could make me stay!
If you move to a country with a tax treaty with Canada the taxes you pay on Canadian sourced income can be as low as 15%... Mexico is a prime example. CPP, OAS, work pension and regular (same amount) RRSP withdrawals only attract 15% income tax from Canada and 0 from Mexico.
There are lots of TH-cam videos on this topic, and this video is particularly well done. However, like all the others, it focuses on reasons for and methods for avoiding tax residency in Canada. I have the opposite problem and no one is helping! I want to qualify for pension income splitting! How does CRA define residency for that purpose?
@@tayruong5395 hey yay, if it is something specific, I always encourage people to find a professional accountant to discuss your specific situation. If you don’t currently work with one, my team and I can help. Feel free to call us at 416 548 4228 to set something up
If a non tax resident returned to Canada, full time, after 3 years how, does Revenue Canada assess whatever income might have been earned abroad
If you are a resident for tax purposes, but not in Canada for 183 days, is a claim to the GIS supportable?
Best video on this topic on TH-cam.
Thanks!
Great topic! Thanks for making a video on this.
QQ - Say if someone becomes a US tax resident (non canadian resident), can the 25% withholding from RRSP on withdrawal with adjusting with the income tax in the US?
Do you know how real estate presale contracts is considered in non tax resident status?
Can you use LCGE to offset the deemed disposition gain on private shares (assuming you’re otherwise eligible for LCGE)?
Ask my single mom with 4 children tenant if I'm providing housing. Ask my veteran family of three (mom has MS and dad has disability) tenant if I'm providing housing.
@@RealEstateTaxTipsnot sure what you mean.
What if you liquidate everything you own before deciding to become a non tax resident of Canada. Do you still need to pay a departure tax on the cash you're taking out?
As long as you have paid all the tax due on your previous transactions, no.
The departure tax is essentially the same as the taxes due on winding up an estate after someone dies. All assets are deemed disposed of, meaning any tax due on capital gains based on fair market value or closing down an account with deferred tax, such as an RRSP, are due immediately.
You'd pay capital gains on whatever you liquidate, which is basically the same as departure tax. Different name, same cost. The main difference is you would choose when to liquidate which might increase or decrease your costs.
What about the assets held in other country like non-registered assets in India? Please reply
Thank you! Very helpful
Glad it was helpful!
So if you live in a different country for more then 183 days but your income is a Canadian income. You automatically pay full Canadian taxes on it ?
Yes as you would be considered a Canadian Tax Resident
@@RealEstateTaxTips thank you.
What about if you run a services business with majority time in another country (after exiting) with a business registered in another country, but your clients are Canadian?
In addition, as far as I understand, you wouldn't be able to claim pension tax credit, age tax credit (if you are over 65), medical expenses tax credit, and your tax free base amount would be lowered from 15K to 12K. I am not professional, so you may want to double-check that. The bottom line is Canada loves you, and they want you here.
@RealEstateTaxTips Actually, it seems like this is not a bad solution. The question is, if I live somewhere else, how is my tax return done (or my holdco) if I don't have Canadian address ?
I am planning to move to New Zealand for few years next year and apply for dual citizenship. Do you suggest I sell all my shares and also sell out my rental property before leaving🤔 only thing I heard I can keep open is RRSP 😏
Can you please do a video on how to calculate all sorts of expenses against capital gains so we can minimize it to maximize potential?
the only thing that can offset a capital gain is a capital loss. Easy Peasy. They don't have to be in the same tax year. I don't recall how long you can hold a capital loss, the rules change and I've been out of the business for a while, but I think it's 10 years. Check with your accountant. The loss doesn't have to be in the same capital category.
This is very informative! Can't we keep the Real Estate investments and also be non-tax resident Canadian and eventually living in another country? Thanks
Yes you can. Just need to continue to file return in Canada on the Canadian source income as non-resident of Canada
I remember being told years ago that the reason the Government hates organized crime is that it is competition.
Such an interesting comparison...
If and when I leave 🇨🇦! Government is NOT getting another F dime!!
Do you pay deemed disposition on your Canadian cottage if you dont rent it out.?
What if you have 3 etf index funds? You don't own the assets.. do you still have to sell?
3 etf index funds, that's an asset. You trade etf funds like stocks. For income tax purposes, it doesn't matter if you incurred capital gains from selling stocks or etfs.
What the heck is CLA?? She keeps mentioning it through the whole video. I’m not accountant, so I guess it’s no surprise that I’ve never heard of this before. This really shows me how much I don’t know about the Canadian tax system. I’m humbled
Great job explaining this topic!
Glad you liked it!
If I own no properties, no stocks or bonds, no registered funds, nothing at all. Do I owe anything at all on departure?
Can you make a vid on tax implications of business owners becoming permanent residents of Canada? Thanks
What if I stay a resident of Canada but live in a foreign county. Do I only pay federal tax then? Do I still get the TFSA yearly contribution room? Can I still claim the credit for eligibale dividends in my income tax? Thank you
You can keep your tax residency - it is an option. You can continue to file your tax returns
@@RealEstateTaxTips Thank you for responing. Much appreciated. I wish it would have been more detailed and answering my questions.
Feel free to contact your accountant or our office if you currently don’t work with one.
When leaving Canada is it ok to exit while still having debt such as line of credit and CC’s open to pay off a few months down the line. Will it go against me if I do this?
I don’t think brokerages in Canada even allow you to hold TFSA outside of Canada
I've come across so many cases that the staff at financial institutions encourage individuals to open TFSA without considering if they are Canadian tax residents or not
@@RealEstateTaxTips Wow that’s surprising. That wasn’t the case with IBKR though. They told me I can’t hold TFSA and RRSP if I plan to be a non-resident. Although I do think the gov’t allows one to hold RRSP, if I’m not wrong, just additional contributions aren’t allowed.
The big banks will allow u to hold brokerage account. And as a non resident ur allowed to hold RRSP and TFSA
In not in the incentive for the Canadian government to force u remove all ur money outside of Canada. They have a high incentive to keep most of ur assets in Canada.
@@TakashiNippon Nope, I've confirmed with two of the big banks and they told me I can't hold RRSP and TFSA as a non resident.