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New Member
posted Oct 30, 2019 7:14:28 AM

Can TurboTax do Tax returns for a non-resident real estate investor (never lived in Canada) with several houses in Canada?

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1 Best answer
New Member
Oct 30, 2019 7:14:30 AM

TurboTax can be used to prepare a tax return for Non-resident electing to file under Section 216 for Part XIII source income (Rental). Select the correct filing status in the section for Province of Residence.

17 Replies
New Member
Oct 30, 2019 7:14:30 AM

TurboTax can be used to prepare a tax return for Non-resident electing to file under Section 216 for Part XIII source income (Rental). Select the correct filing status in the section for Province of Residence.

New Member
Oct 30, 2019 7:14:31 AM

Which TurboTax product need to use  to prepare a tax return for Non-resident electing to file under Section 216?

New Member
Oct 30, 2019 7:14:33 AM

All TurboTax products will allow for the residency designation of Election under 216. Entry appears under Province of Residence.

New Member
Oct 30, 2019 7:14:34 AM

Will we be able to enter our expenses and claim them as credit to the income of the rent?

New Member
Oct 30, 2019 7:14:35 AM

Yes the T776 Rental Income Statement will be accessible with this Residency Designation "Election 216".

New Member
Oct 30, 2019 7:14:37 AM

Where can I enter NR4 Withholding Tax paid through the year (I have entered all return in Turbotax and could not find this)?

New Member
Oct 30, 2019 7:14:38 AM

You can enter the tax withheld on a T4A Pension..Annuity..Other Slip. Use Box 22. Verify the amount at Line 437.
You may also wish to review the option of reducing tax withheld at source (if you have not already done so) by making the application with CRA on form NR6.

New Member
Feb 15, 2023 8:45:23 AM

Hello ,

 

Can a non resident earning rental income still use TurboTax to file section 216? I login and when asked where you lived in December 31, 2022, I selected non resident and TurboTax came back with "We're sorry, based on your tax situation, we're unable to serve you this year"

 

What do I need to select to access section 216?

Also, I sold one of my rental property in 2022, can TurboTax file section 116 to get a refund from the deposit I made when applying for certificate of compliance? or do I need to get the refund from section 216?

 

Thanks,

Anthony

Moderator
Feb 15, 2023 2:10:01 PM

@anthonyeniola No. Unfortunately, while you can do a section 216 return in TurboTax, the forms for Section 116 are not included. You would need to get them from the Canada Revenue Agency (CRA).

New Member
Feb 15, 2023 3:44:21 PM

Hello 

 

How do I do section 216 in turbotax? How come it say "we're sorry, based on your tax situation, we're unable to serve you this year" when I selected non resident after answering the question where you lived December 31?

 

Moderator
Feb 15, 2023 5:17:13 PM

Are you trying to prepare your own return by yourself in TurboTax Online, or are you trying to get a tax expert to help using Assist & Review or Full Service? Neither Assist & Review or Full Service are available for non-residents.

New Member
Apr 27, 2024 7:10:42 AM

What is the proper filing status exactly to get access to 216?

Moderator
Apr 27, 2024 7:54:36 AM

You would make sure that you put your status as a non-resident S.216.

Can you please confirm if you are using TurboTax Online or TurboTax CD/Download?

 

Thank you for choosing TurboTax.

New Member
Jan 14, 2025 9:57:11 AM

I am using turbotax online and when I select non-resident S.216 and save it in my profile, it shows up as "Deemed Resident by Section 216 election".

 

In my tax profile, I only select Rental Income, and then it forces me to purchase the self-employed package. From here I don't see the ability to fill out T1159.

Moderator
Jan 14, 2025 11:34:17 AM

@capitalmindset When you select non-resident S.216 in TurboTax Online, you should get the question "Which option best describes your residency status..." below and you can change whether you are a non-resident or a deemed resident. Once you've finished your return, you'll get the option to download a PDF to mail to the CRA, and that PDF will contain the T1159 return form instead of the regular T1 return.

 


Thank you for choosing TurboTax.

New Member
Jan 14, 2025 1:04:04 PM

Under "Province/territory" I selected "Non-Resident S.216"

Under "Which option best describes your residency status as of December 31, 2024?", I selected "I was a non-resident of Canada".

Under "Country of residence", I selected "USA"
 
When I click save it shows under "Province of residence", "Deemed Resident by Section 216 election"
 
So does TurboTax not offer you to fill out the T1159 form through the software, and it needs to be done manually?

Moderator
Jan 14, 2025 2:34:36 PM

@capitalmindset 

It says, "Deemed Resident by Section 216 election" because you are a "Deemed Resident" for the purpose of reporting your Section 216 related income.

 

For a resident of Canada, TurboTax Online will go through an interview process and then generate a filled out T1 tax return. But when you are making Section 216 election, you'll get a T1159 instead of a T1. The T1159 is all filled out, you just have to sign it and mail/fax it to the Canada Revenue Agency (CRA).