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Originally Posted by mainlander
Can anyone(Canadian resident) shed some light on income derived from renting your TV home for Jan/Feb/Mar each year. Any thoughts on how it is treated both here and at home? Thanks... Randall
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You need to pay Canadian tax on any earned income, no matter where in the world it is earned. Your US income from renting your home may well be taxable in the US as well. Depends on how much income you make in the US. If you pay tax in the US, you may be able to reduce the tax you pay in Canada by that amount ... that's a question for an accountant.
I assume you file a "Closer Connection Form" with the USA IRS every year. On that form they specifically ask about income earned in the US. It is one way they determine your resident alien status.
One reason we never rent out our US home is that we want to keep a low profile, and just hop quietly over the border for our six months in Paradise every year. We treasure our resident alien status. As a Canadian, we don't have a right to stay in the US for six months every year, it's a privilege.