Moving from Quebec to Ontario in 2019

taxpreparer · ‎June 02, 2020

Client moved from Quebec to Ontario in 2019 and became an Ontario residence.

He had a T4A slip (box 105 schoolarship - but he didn't had T2202 slip) and rental income from Quebec. All other income were from Ontario.

For my understanding, client only has to file Federal and Ontario tax return since he is an Ontario residence at year end. He has no obligation to file Quebec tax although he received T4A and rental income from Quebec.

Could anyone clarify my rationale? Thank you so much.

janisbossenberry · ‎June 02, 2020

That is correct. In Canada, we file returns based upon our residence at December 31, 2019.

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janisbossenberry · ‎June 02, 2020

That is correct. In Canada, we file returns based upon our residence at December 31, 2019.

litschel · ‎June 02, 2020

One possible way to save taxes (provincial anyway) is to file the rental income on the Quebec provincial return. I know that if you have business income in a different province, you would file that income in the province the business is located in. Federally, yes, it would be filed according the the province of residency but if you can file rental (a business?) in Quebec and the balance of your income in Ontario, you might be able to save a bit of taxes.

litschel · ‎June 02, 2020

To clarify a little, you would file the rental income on the Quebec provincial tax return and not on the Ontario provincial portion of your federal return. The T4A would go to the Ontario provincial return as well.

taxpreparer · ‎June 02, 2020

My client's net rental income and all other income were below the basic personal amount threshold. If I only file Federal and Ontario tax, will this be okay? Quebec tax is an option to save some tax, but is not a MUST to file right?

I always have concern over if I also have to file Quebec tax for the client because Quebec tax is so different from the rest of the other provinces.

Thank you so much for your answers!

janisbossenberry · ‎June 02, 2020

I disagree that you have to or even have the option to file a Quebec provincial tax return. You only file Quebec returns (as a resident of Ontario) if you have Quebec business income earned from an establishment in Quebec. A rental property is not a business. You must report your worldwide income on your Federal/Ontario return in the situation you have described.

manon-st-cyr · ‎June 02, 2020

Also, if you had some benefit like medicare, kids allocation, etc. You need to report the income earned in Quebec. Check revenu QC site to see the etc.

taxpreparer · ‎June 02, 2020

How about T4A schoolarship (Box 105) from Quebec? Does it consider a benefit? Do I need to report this on Quebec's return?

janisbossenberry · ‎June 02, 2020

No, it is just income to be reported on the Federal/Ontario tax return.

manon-st-cyr · ‎June 02, 2020

Voici le lien sur le site de Revenu QC. Ils ne mentionnent pas les prêts et bourses

<a rel="nofollow" target="_blank" href="https://www.revenuquebec.ca/fr/citoyens/votre-situation/statut-de-residence-et-assujettissement-a-li...>

dogilvie89 · ‎June 02, 2020

YOU need to stop doing taxes and take a course or two

hbienenstock · ‎June 02, 2020

If he gets a T2202 slip as a full-time student in 2019 then the scholarship income is tax free.

Also, the rental income is not taxable in Quebec unless it is business income attributable to an establishment there.

9130347028092726 · ‎July 23, 2020

As Your province of residence is Ontario as of Dec 31, 2019 everyone is right,

You just needs to file the Federal return......

However if the rental income is managed by someone as a business then he would need to deal with TVQ / TPS as a business but would not file a TP!. like a Chalet at Tremblant as an example.

One thing to note as a landlord with properties in Quebec you should still file an RL-31 for your tenants so they can claim their solidarity tax credit.

A receipt like in most of the country is not enough in Quebec.

ShoeboxBookkeeping · ‎May 07, 2021

Also the REL 1 income tax on box E can be added on line 43700 since they moved from Quebec to Ontario, they are entitled to receive the income tax that was deducted. A few tax preparers make that mistake.

dogilvie89 · ‎May 07, 2021

so YOU tell them to make a MISTAKE ?? why not do it CORRECTLY and add it where it is supposed to be added ? On bottom of T4 page it says " TAX DEDUCTED (NON-RESIDENT OF QUEBEC) this is where it gets added--

doing it YOUR way just messes up CRA protocol and creates problems when they try and assess the return

ShoeboxBookkeeping · ‎May 07, 2021

I have never had any issues with CRA when I add the REL 1 description to Line 43700 under Other Credits. I don't tell them to make a mistake, not sure where you read that part incorrectly.

dogilvie89 · ‎May 07, 2021

there is a reason the line is put on the T4---the CRA does NOT get copies of the Releve1

used to work for a firm that also just added it and the client would then be requested to provide proof of Taxes withheld as it does not correspond with the info CRA has on file.

Putting anything anywhere other than exactly where it belongs on the T1 is WRONG ! pretty plain and simple

give them the CORRECT answer as to where it BELONGS not how "YOU " do it.

dogilvie89 · ‎May 07, 2021

the person actually even asked the question 1 YEAR ago--I think they received the answer they needed LOL

ShoeboxBookkeeping · ‎May 07, 2021

It is correct, the way I have been doing this for 38 years !