Canadian Non-Resident Real Estate Income – Section 216 Election
Canadian non-residents are taxable in Canada to a tax on income from certain “passive” sources of income earned in Canada, including rent. The general tax rate on rental income is 25% of the gross amount of the rents received. Canadian non-residents can elect under section 216 of the Canadian Income Tax Act to be taxed on their net rental income instead of the gross amount of the rents they earn.
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