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Estate Tax Planning Canada

Question: Canadian withholding tax on real estate proceeds by non-residents?

I’m a UK citizen, I plan to buy and resell some real estate in Alberta. As I’m a non-resident in Canada I suggest that any purchase proceeds or other amounts payable to me in respect of the Alberta real estate investments would be subject to Canadian withholding tax. Is that so? If yes is there any way to reduce that withholding tax? Thank you.

Answer: The withholding tax on rental income for non-residents is 25% of the gross rental income. This would be considered your final tax obligation to Canada.

However, this amount may be reduced to 25% of the net rental income (rent minus current expenses) if you find an NR6 election with the Revenue Agency and file a T1159 on time each year.

The following link is a guide published by the Revenue Agency specifically for people in your situation. It also includes contact telephone numbers for the International Tax Services Office.

http://www.cra-arc.gc.ca/E/pub/tg/t4144/t4144-e.html

Estate Planning

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Tax Planning Canada

Question: Do I have to pay Custom Tax if I bought something from Canada that will be shipped in the US?

I’m planning to buy some Jessica Simpson cosmetics from eBay. The seller’s location is in Canada and I plan to ask the seller to ship the items in my relatives’ address in the US. I wonder if they’ll be charged of custom taxes and if they have to go to the post office to get the items. Thanks! =)

Answer: http://www.cbsa.gc.ca/import/courier/postal/ind_duty_free-e.html - this will give you what you need about Canadian rules relating thereto.

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http://www.bcbsinc.com

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