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Property and taxes

Property and taxes

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Old May 3rd 2011, 2:08 pm
  #31  
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Joined: Jan 2009
Location: Ottawa, ON
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brian_munich is an unknown quantity at this point
Default Re: Property and taxes

not sure whether this ought to be in a separate thread, but as it is somewhat similar i shall ask for advice here if that's ok.

basically, in a similar situation - resident in canada, and have rental property in UK.

declared the value bracket on T1135, as well as the foreign property income amount

the Ufile software then gives an option under 'foreign property' for "rental income"
question is - it then asks for 'gross & net amounts of foreign business income'and then "foreign business income entered as a business income', before asking for amount of income exempt under a tax treaty.

thing is, being a single flat in the UK rented out through an agency, does this constitute business income? and should that amount tally with the amount on the T1135?

and when it asks for 'foreign business income entered as a business income' - i really don't understand what they are after.
this is simply not a business, but presumably some figure is required.

i am then prompted to state the amount of income exempt under a tax treaty.
what figure is required there? - is this my UK personal allowance, or is that null and void, since not being UK resident, even though filled out NRL1 form?

finally i am then asked to fill out a separate Rental Income section, which presumably generates a form T776 - is this not only for Canadian property - since you cannot enter a postcode!
this is where I have entered gross rental income (from UK) and then deducted various maintenance, interest and so on.

is that correct?

thousand apologies for so many questions, but any snippets of assistance would be most welcome even at this late stage in the game.

thanks in advance.
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