MR and Mrs Dong are citizens and residents of china. They purchased a condo on their names in Toronto, Ontario. For their daughter Min. Min moved to Toronto in August 2017 to attend the University and rented two rooms to her friends, Chen and Lin who are Canadian residents. Min will live in Canada for the last four years while attending the school. Chen and Lin each pay rent $400 per month to Min, who deposits the funds into his parents Canadian bank account. Min pays mortgage, utilities and property taxes for the property from his account. Her parents will occasionally withdraw excess funds from the account.

Required:

1. Discuss the Canadian tax implications associated with the rental of the property and any options available to the non residents

2. What will happen if the condo is sold in the future

3. Would it have been better for Min’s parents to give or lend Min funds to purchase the condo in her name.

Answer rating: 100% (QA)

1 Canadian Tax Implications and Options for NonResidents As nonresidents of Canada MR and Mrs Dong will have certain tax implications related to the rental property in Toronto Here are some key consid... View the full answer