Korean Job Discussion Forums

youtuber · Joined: 13 Sep 2009

Just wondering how common this is. I am from Canada and I am pretty sure there would be tax issues associated with this. That is, if I had a mortgage on a Canadian house, I would necessarily have to be taxed on my Korean income at the Canadian rate (which is high).

I am pretty sure that having a house in Canada is a "significant tie" which would tie you to the Canadian tax system. But what about putting the house in someone else's name? How would rental income be treated in that way?

Any insights or experiences are greatly appreciated.

'Tuber

Cheonmunka · Joined: 04 Jun 2004

I am a non-resident for tax purposes. I only pay NZ tax on the rental income. Gotta apply for your non-residency thru the tax department for NZ (a commonwealth country) when overseas otherwise you are liable for tax on all Worldly income.
Maybe similar for Canada.

tatertot · Joined: 21 Oct 2008

I have a house in Seattle, Washington, but I didn't think that had any tax implications for me. Now I will have to look into it. Thanks!

conbon78 · Joined: 05 Jun 2008

I have a house in Chicago. I have renters in it, so I have to file my taxes, but I don't have any income so that helps. Its not a big thing in the US at least.

blaseblasphemener · Posted: Tue Sep 15, 2009 7:40 pm Post subject:

OP, I hope you're talking hypothetically. I can't imagine a worse time to buy a house in Canada than right now. Prices are stupid, and rates are going to go up within a year, significantly. Hold onto your cash and wait for the market to fall. 85% of Canadian wealth is in their houses, which means there is a decided lack of diversity and over-investment in the RE stuff.

ifa79 · Joined: 29 Dec 2004

I bought a cottage (summer home) last summer. The price was right and second homes and land will not lose value like many suburban homes.
Mortgage rates are also very low now.

The bank classified me as a non-resident because I haven't filed taxes in years. Because of this I had to pay 40% down payment.

I am still not sure of the tax implications. I will pay my county property taxes and I will probably fill out the non-residency form soon. There are many people who have second homes in Canada from USA, Germany etc and they only pay property taxes and rental taxes (if they are revealed). Canada will not tax non-residents' foreign income. I hope they don't try to tax me because I am "Canadian"

I have significant ties to Korea and will be promoting them.

youtuber · Joined: 13 Sep 2009

Yes, hypothetical. I am nowhere even close to buying a house. Just wondering if some of you have done it.

It's funny though because the rates are so low now, but in Alberta, oh my god, $400K for a crappy bungalow. It's such a joke out here.

Cheonmunka · Joined: 04 Jun 2004

Can I ask a question for Americans with houses: When I read the property ads for there I see property tax is like sometimes 6000 dollars even for a basic sort of place. Is this an annual tax?
Is it for other stuff as well like refuse collection and council/county fees?

tatertot · Joined: 21 Oct 2008

Generally the property tax you see in an ad is a yearly amount. It is usually paid half at a time, twice per year (at least in Seattle). The amount of property tax varies based on where you are living and the assessed value of your property.

Countrygirl · Joined: 19 Nov 2007 Location: in the classroom

If I remember my tax course well enough, if you have renters in the house with a lease and are not able to live in the house or take immediate possession, then you can still declare non-residency. Call CRA or ask an accountant to make sure. Just make sure that nothing in the house of yours remains, ie old cars, boxes of your things in the garage etc. You have to make it look like you are never coming back and a minimum number of ties to Canada to qualify for non-residency (again, if I remember correctly).