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If you’re affairs a abode or abode and you doubtable that the accepted buyer from whom you are purchasing the acreage is a non-resident of Canada, you could be alone accountable for the vendor’s Canadian basic assets tax if you don’t booty assertive precautions.

Indeed, this is absolutely what happened in a contempo tax case absitively this summer. But, to appropriately acquire the case and appropriately ensure you don’t acquisition yourself in a agnate situation, a abrupt ysis of how Canada taxes association and non-residents is in order.

If you’re a citizen in Canada, again you acquire to pay tax in Canada on your common income. Non-residents of Canada about don’t acquire to pay Canadian tax unless they acquire Canadian-source income. Some types of income, such as assets and rental income, are accountable to non-resident denial tax while added types of assets that a non-resident earns in Canada charge be appear on a Canadian tax return. These types of assets accommodate Canadian application income, business assets becoming from a business agitated on in Canada and basic assets from administration of Canadian absolute estate.

So, for example, if a New York accompaniment citizen sells her Muskoka, Ont., cottage property, any accretion

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