Need guidance for 1st time tax for sponsored parents:1) no revenues in Canada, 2) they live with us 6 months/year, 3) they pay taxes on their revenues in Romania. Thanks

[TurboTaxLise · Accepted solution]

Ok, so there are a few factors to take into consideration before filing your parents first tax return :

• Their residency status when filing a Canadian Tax Return.

Residency status when preparing a return in TurboTax Canada

https://turbotax.community.intuit.ca/replies/2647682

• Then you have to look at the "type" of income you need to report , and because Canada has a tax treaty with Romania - it ensures we don't get doubled taxed.

How do I enter foreign income that is subject to a tax treaty?

https://turbotax.community.intuit.ca/replies/2647756

• And if for whatever reason you needed to report "other" types of foreign investments/pensions/income sources.

How do I report foreign income, pension, and other foreign amounts? https://turbotax.community.intuit.ca/replies/2647976

And last but not least, please keep in mind that because it is the first time your parents are filing a Canadian tax return, you will not be able to Netfile, you will have to print and mail it to the CRA.

[mircea_bratianu]

Thank you for the answer Lise. Another question: my inlaws stayed in Canada for 190 days (arrived on April 9th and left on October 15. They don't have property in Canada or other significant residential ties, except they are staying with us. This will repeat itself for the coming years. Are they considered factual or deemed residents?

[TurboTaxLise]

Please review the links below from the CRA to explain each residency status; and apply it to your personal situation with your in-laws:

Deemed residents
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving...

Factual residents – Temporarily outside of Canada
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving...