OTTAWA TO CLOSE FOREIGN-BUYERS LOOPHOLE
(excerpt from the Globe and Mail – Oct 3, 2016)
“Ottawa will close a tax loop-hole that allows nonresidents to buy homes and later claim a tax exemption on the sale, a government source said Sunday. The government plans to make sure the principal resident exemption is available only to individuals who reside in Canada in the year the home is purchased. Housing prices have soared dramatically the past few years in the Vancouver and Toronto markets, triggering a vigorous debate about the role of foreign money….Nonresident investors must pay capital gains tax at the time of a sale…”
Citysearch has several nonresident owners and handles the nonresident administration as set out by the Canada Revenue Agency (CRA). Citysearch handles the withholdings from rental income, and remits to CRA on a monthly basis. Citysearch issues nonresident owners an NR4 slip by March 31 for the preceding year which shows rental income collected and the amount withheld and remitted.