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Level 1

Moving from Quebec to Ontario in 2019

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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Best answer June 02, 2020

Best Answers
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Level 2

Moving from Quebec to Ontario in 2019

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

View solution in original post

12 Comments
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Level 2

Moving from Quebec to Ontario in 2019

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

View solution in original post

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Level 3

Moving from Quebec to Ontario in 2019

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.
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Level 3

Moving from Quebec to Ontario in 2019

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.
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Level 1

Moving from Quebec to Ontario in 2019

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!
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Level 2

Moving from Quebec to Ontario in 2019

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.
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Level 1

Moving from Quebec to Ontario in 2019

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.
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Level 1

Moving from Quebec to Ontario in 2019

How about T4A schoolarship (Box 105) from Quebec? Does it consider a benefit? Do I need to report this on Quebec's return?
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Level 2

Moving from Quebec to Ontario in 2019

No, it is just income to be reported on the Federal/Ontario tax return.
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Level 1

Moving from Quebec to Ontario in 2019

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...>

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Level 2

Moving from Quebec to Ontario in 2019

YOU need to stop doing taxes and take a course or two
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Level 1

Moving from Quebec to Ontario in 2019

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.

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Level 1

Moving from Quebec to Ontario in 2019

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.