How Taxes Work With Propty

Canadian residents are required to disclose any income received from Propty to the Canada Revenue Agency (CRA).

Taxes are filed using a T776 form, which we will complete for you and send to the CRA. You will also receive a completed copy. Rental income is taxed as nominal income, and standard capital gains taxes apply when you sell your tokens for a profit.

You will receive a single T1 form for each property you invest in. The T776 form is pre-filled, and you will only need to complete a few fields in your T4 form, which is your personal tax filing.

However, you should always consult your own accountant and make decisions based on your own risk tolerance.

Tax Information for Non-Canadian Residents:

If you are located outside of Canada, you will be subject to withholding taxes when you sell your tokens for a profit or withdraw your rental income. Some countries have tax treaties with Canada, which may allow you to avoid withholding taxes. To benefit from these treaties, you must complete a Form W-8BEN for individuals or a Form W-8BEN-E if you invested as a business entity, and send it to [email protected] as separate attachments in the email before you withdraw rental income or sell your tokens.

This process is only available for foreign entities or individuals who have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) within Canada. If you do not have one of these numbers, you will be subject to foreign withholding taxes.

Note:
Always consult with your own accountant to ensure compliance with all relevant tax regulations and to make informed decisions based on your personal financial situation and risk tolerance.