Disposition of Canadian Property by Non-Residents

We assist non-residents in the complicated process required by CRA when selling a Canadian property.

INCREASE ACCURACY

At Jibe Accounting, we know the requirements from CRA in the process of a disposition of a Canadian property by a non-resident. Our experience in this complicated process will ensure the accuracy in our work with your disposition. We will request the relevant certificate of compliance for you and communicate with CRA to make sure you get the most out of your sale of your Canadian property. Our goal is to ensure that your applications and certificate of compliance is achieved with the utmost accuracy.

REDUCE WITHHELD TAXES

When there is a sale of Canadian property by a non-resident, CRA will withhold 25% of the gross sale price of the property for taxes. Our job is to follow the required procedure, and use the opportunities offered by CRA to reduce this amount. With our experience, we can ensure you get the most out of the sale of your Canadian property.

INCREASE EFFICIENCY

With the process of a non-resident selling a Canadian property, the processing times can be lengthy. This can result in a long waiting period for non-residents in receiving their proceeds from the disposition. However, we know the deadlines from CRA and with our experience can offer more efficient processing times.

The Process of Disposing of Canadian Property by Non-Residents

The process required by CRA when a non-resident sells a Canadian property can be complex and lengthy.

The Steps Required:

Determine which kind of property is being sold, and therefore the right certificates of compliance to apply for with the most accuracy.

It may require the T2062 form (T2062 Request by a Non-Resident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property) and/or the T2062A (T2062A – Request by a Non-resident of Canada for a Certificate of Compliance Related to the Disposition of Canadian Resource or Timber Resource Property, Canadian Real Property (Other Than Capital Property), or Depreciable Taxable Canadian Property). T2062 is for the land and the depreciable property and T2062A is for recapturing the CCA (Capital Cost Allowance) or loss on the depreciable property. As well, additional information will be required if the property has been rented out.

This must be done within 10 days of the closing date of the disposition.

You will also need to apply for an ITN (Individual Tax Number) if you do not have a SIN in Canada or BN (Business Number) if a corporation.

It is required to withhold 25% to 50% of the gross sale price of the property for taxes. Once this amount is sent to CRA, the certificate of compliance will be issued. However, there are remedies and opportunities to reduce this tax owing.

Since we have experience in this process, we will be able to assist you each step of the way to ensure accuracy with CRA and the best results from the disposition.

Committed to Assisting our Non-Resident Clients

Jibe Accounting is an important resource for non-residents with Canadian property in Calgary.

 

The consequences of an inaccurate or non-existent application for a certificate of compliance can result in:

A lengthier process that prevents the withheld taxes from being processed and some amounts being returned to you.
A longer period in which the proceeds of the sale are not released to you.
Failing to file/submit notice on time is $25 a day (to a minimum of $100 and maximum of $2,500).

 

However, the benefits of an accurate and completed application for a certificate of compliance can result in:

Less taxes withheld and ultimately paid to CRA.
Proceeds from the sale released in a more efficient amount of time.
Refunds on Canadian tax returns or foreign tax credit for your home country

 

Use our expertise and experience in this process to help you benefit the most from the sale of a Canadian property as a non-resident.

LET'S CHAT

We would love to hear from you and see how we can help