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.
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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.
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.
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.
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
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.
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.