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What is a Form T2062?

May 3, 2016

Tax Question:

What is a form T2062 and its filing requirements?


This form is used by non-resident corporations or individuals of Canada to give notice of the disposition of taxable Canadian property.


The property could include but is not limited to real estate rental property, buildings, shares, business assets or an income interest in a Canadian trust. When these types of properties are sold by a non-resident, the Canada Revenue Agency (CRA) requires you to pay 25% of the net capital gain on the property upfront. When you calculate this net gain, you are not permitted to reduce it by any outlays or expenses related to the sale of the property. You can then file a Canadian income tax return at the end of the year and claim your outlays and expenses. Without filing a T2062, the purchaser of the property would be required to withhold 25% tax on the gross sale proceeds (50% in the case of depreciable property). The T2062 is used to report the disposition of the non-depreciable part of the property (for instance, land) and a T2062A is used to report the disposition of the depreciable part of the property (for instance, a building). You must file a separate T2062 or T2062A for each person indicating an interest in a joint tenancy or co-ownership. There is also a lot of supporting documentation that needs to be filed with these forms that can involve some complicated calculations. You also must file these forms with CRA within 10 days of the closing date of the disposition of the property or face stiff penalties ($25 a day and up to $2,500). It usually takes two to three months for CRA to process the forms after which time they will issue a “Certificate of Compliance.” Once you have the certificate, you must attach it to your Canadian income tax return filed at the end of the year or it may result in a delay in processing at CRA. As you can see completing these forms correctly and on time is not only important but could result in dire tax consequences if requirements are not followed.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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