TAX TIPS - Canadian Rental Property
This quiz is based on an article which appeared in the Fall, 2006 issue of PERSPECTIVES Magazine, on page 41 called "Tax Tips." You may click on a link to this article from the CERC website www.cerc.ca
Participant Information
First Name
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Last Name
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E-mail Address
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Date
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1
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Foreign investors and Canadians living outside Canada who hold their properties are generally considered, for tax purposes, non-residents of Canada
True
False
2
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It is more beneficial to pay the tax on the gross rental income of rental property than it is to pay income tax on the net rental income subject to the graduated tax rates
True
False
3
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The property rental marketplace in Canada is
a) decreasing
b) increasing
4
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A non-resident of Canada who owns and rents out Canadian property is subject to a 35% withholding tax on gross rental property
True
False
5
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It is possible to eliminate the withholding tax on rental property
True
False
6
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Where rental property is owned jointly, separate forms should be filed by each owner
True
False
7
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If paying withholding tax on gross rental income, this should be remitted to CRA on
a) the 15th day of the month, following the month the rental income is received by the property owner.
b) April 30th every year.
8
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It is not possible to pay taxes on net rental income
true
false
9
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Canada is experiencing an explosion in real estate activity
true
false
10
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A loss on rental income can be used to reduce income of any kind in subsequent tax years
true
false
