# Tax on rental income



## Bill4728 (Apr 4, 2015)

HI

I'm a US citizen but I rented my Canadian TS for c$408 and got a NR4 showing I paid c$102 in tax  

Do I just pay it or can I file something to get any money back?

TIA


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## Maple_Leaf (Apr 6, 2015)

*Here's some readily available information*

RENTAL INCOME EARNED ON A CANADIAN REAL PROPERTY BY NON-RESIDENT

You can just pay the 25% withholding of GROSS income and be done with it:


> In general, the Part XIII withholding tax of 25% is your final tax obligation in Canada concerning rental income earned on a real property in Canada.



Or you can file a return based on the NET income and the marginal tax rate:


> A non-resident taxpayer can elect to file a Canadian income tax return.  This elected return simply requests tax be assessed on net rental income and at marginal tax rates.  In general, excess Part XIII tax remitted will be refunded by filing an elected tax return. It is crucial to keep documents/receipts of expenditures incurred to earn rental income.  Canadian income tax returns are filed during February – April of the following year.



In the future, you can have the withholding adjusted to 25% of estimated NET income:


> In addition to an elected Canadian income tax return, a non-resident taxpayer can also request the Part XIII tax be reduced to 25% of estimated net rent by filing an NR6 request. To make this election, a reasonable estimate of annual net rental income must be established.  This election must be made before January 1st or when the 1st rental payment is due.



My advice is to consult your tax professional.


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## am1 (Apr 7, 2015)

Just pay it.   I am sure it is already spent.  Not worth the effort to file to get it back.


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## b2bailey (Apr 7, 2015)

This reply causes my head to spin -- pay if it is DUE  -- but then a comment about filing to get it back. I read it like it has already been withheld.


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## am1 (Apr 7, 2015)

Probably withheld from the resort rental arm or another rental company.  If not the chances of filing and paying the tax are very small and expensive.


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## MaryH (Apr 14, 2015)

Just like canadian have winnings in las vegas tax withheld, official income or interest income would withhold 25% from canadian sources for non-candian...


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## Fern Modena (Apr 14, 2015)

Well, but if you are playing slots in Las Vegas, you only have winnings taxed if they are $1200. from one single machine. Quite a bit more than you are speaking about, so not "just like." 

Fern



MaryH said:


> Just like canadian have winnings in las vegas tax withheld, official income or interest income would withhold 25% from canadian sources for non-candian...


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## am1 (Apr 14, 2015)

Fern Modena said:


> Well, but if you are playing slots in Las Vegas, you only have winnings taxed if they are $1200. from one single machine. Quite a bit more than you are speaking about, so not "just like."
> 
> Fern



Why is gambling even taxed?  I thought it was a tax itself.


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## sjsharkie (Apr 14, 2015)

...because the US can get tax revenue from it 

All gambling winnings are taxed in the US.  You can deduct losses up to the amount of winnings if you itemize deductions.  (Note, there are exceptions where you could claim expenses if you can prove you are engaged in a business (rare) -- i.e. professional poker player).

Winnings from say slots in Vegas are reported to the IRS if over $1200.  There are different rules for different types of gambling (i.e. horse racing is different).  Technically you are still supposed to report the gross winnings and gross losses regardless of what is reported to the IRS.

-ryan


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