I am a Canadian Resident working toward my Green Card in the US. I have been more or less living in USA and India for long periods of time. I do have an apartment in Canada from where I derive net rental income (after expenses ) of about 3000 a year.I am thinking of giving up my CAD residency due to tax obligations of filing worldwide income in Cad.If I give up my Residence how do i deal with my Rental Apartment in Cad.Any other advise on how to deal with this situation.Thanks
Once you become a non-resident (which involves, in the case of both the US and India, means having a closer connection to that country than you do to Canada), your rental income is still taxable in Canada.
You're taxed on your world-wide income in your residence country. You should have a credit on your residence country return corresponding to the Canadian tax on your rental; in the US, you would file form 1116 with your tax return.
What about the Canadian Property
You would file a non-resident Canadian tax return,reporting income from the Canadian property, and any other Canadian-sourced income.
I'm sorry; I have to take my wife to a doctor's appointment. Should be back within 2 hours.
I'm back, more or less...
If you have your (US) green card while a Canadian resident, you'll have to pay taxes on your world-wide income to both countries. The normal procedure is: 1. You calculate your US taxes as if you were not a US citizen or resident, on form 1040NR2. You calculate your Canadian taxes on your world-wide income, allowing the amount in part 1 as going toward your Foreign Tax Credit in Canada.3. You calculate your US taxes on your world-wide income, allowing the amount in part 2 as going toward your Foreign Tax Credit in the US (form 1116).