Owning a property and earning Canadian source income and capital appreciation are subject to various taxation requirements. Our team of CPAs will advise and help you prepare and declare your taxes in a timely manner. This area can be a bit complicated and might differ among individuals and their personal preferences. For more detailed information on this subject, please contact us and ask about the Tax Implications.
In addition to the initial Land Transfer Tax, non-resident Canadians and Foreign Investors are required to pay income tax on Canadian generated income and gains. As such, they are required to declare the following taxes:
- Land Transfer Tax
Upon purchasing a new property, there is a provincial tax that needs to be paid. Homebuyers also will incur one more municipal land transfer tax of the same value when they buy within the City of Toronto. The value of the taxes defers depending the purchase price of the property. Refer to our Land Transfer Calculator under our Resources section.
- Rental Income Tax
Canada Revenue Agency (CRA) requires payment of withholding taxes on rental income collected. There are three options to declare these taxes. Please ask us for more information.
- Capital Gains Tax
Investors need to consider the effect of Capital Gains while selling their property. Sellers are required to pay taxes on the capital gains.
- Property Tax
As a property owner, you are liable to pay property tax to the city. This tax is calculated based on the assessed value of the property. Refer to our Property Tax Calculator under the resources section.