How to report capital gains for a property sold by Non-Resident S.216 filer

Forum|Forum|3 years ago
July 4, 2022
1 reply
8 views

I have a non-resident client filing T1159 for non-resident S.216.He sold his rental property. How can he report capital gains and I can't find a place in T1159 for this capital gain. How can he report his rental income and capital gains together as a non-resident S.216 filer?

ProFile (Canada)

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D

dlarryhancock1

Level 5

Naseem

When a non-resident owns real property (land, buildings) in Canada and earns rental income from that property they file a s.216 return in order to report that income.

When they sell real property they have to file the s.216 return for that year to report the income and expenses for the property up to the date of sale.

The capital gain or loss gets reported on a regular tax return for the year. They indicate their status as being a non-resident and the only thing that can be reported on the return is the capital gain or loss arising from the disposition.

If forms T2062 and T2062A have previously been filed and clearance certificates issued once taxes have been paid, those tax amounts already paid will be claimed to perhaps generate a refund, or reduce a tax balance owing.

Larry Hancock CPA

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