Turnkey Property Management prides itself on empowering our owners with all of the necessary knowledge prior to leasing out their unit.
Working with your accountant to determine the tax implications you may face is crucial. Determining if you are non- resident vs resident can have a major impact on the income received monthly; it can impact your income by 25%.
Residents of Canada:
Income and expense tracking can become tedious without a proper organizational system. At Turnkey Property Management, we provide all of our customers with monthly statements, ensuring that you are aware of how your rental income is being allocated. Detailed reports come with income and expenses; you will be able to track your finances easily. Many of our clients open a separate bank account for their rental properties to keep transactions more organized, and separate from personal expenses. Expenses such as mortgage interest, leasing, managing fees and maintenance are all taxable items, so be sure to consult your accountant for a broader list of taxable items and advice.
Non residents of Canada:
The Canada Revenue Agency, classifies persons that normally, customarily or routinely live in another country not to be residents of Canada. This includes people who do not have significant residential ties in Canada, live outside Canada throughout the tax year, or stay in Canada for less than 183 days in the tax year. If you are deemed as a non resident, we are required to hold back 25% of gross monthly rent and remit it to the CRA. There are ways to minimize this hold back, so either check with a professional accountant or a Turnkey Property Management agent and see how we can help.