In each of the following Cases, determine how the rental payments made to non-residents will be taxed by Canada.
Case 1 - Carco is a U.S. corporation with worldwide rental facilities dedicated to automobile rentals. Carco has offices in New Brunswick, where it rents out small and medium sized vehicles.
Case 2- In 2017, Danielle Clark, a U.S. resident, acquired several cottages in Manitoba that she rents out. In 2020, she rented the cottages to Canadian residents exclusively. Danielle received $46,000 in gross rents and estimates that expenses, including CCA, totaled $17,500.
Case 3 - Assume the same facts as in Case 2, with one additional consideration. Danielle acquired four all terrain vehicles in 2018, which she rented to guests of the cottages for an additional cost. In 2020, she received $4,000 in gross rents and estimates all terrain vehicle related expenses of $2,500.

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The Answer of In each of the following Cases, determine how the rental payments made to non-residents will be taxed by Canada. Case 1 - Carco is a U.S. corporation with worldwide rental facilities dedicated to automobile rentals. Carco has offices in New Brunswick, where it rents out small and medium sized vehicles. Case 2- In 2017, Danielle Clark, a U.S. resident, acquired several cottages in Manitoba that she rents out. In 2020, she rented the cottages to Canadian residents exclusively. Danielle received $46,000 in gross rents and estimates that expenses, including CCA, totaled $17,500. Case 3 - Assume the same facts as in Case 2, with one additional consideration. Danielle acquired four all terrain vehicles in 2018, which she rented to guests of the cottages for an additional cost. In 2020, she received $4,000 in gross rents and estimates all terrain vehicle related expenses of $2,500.

In Each of the Following Cases, Determine How the Rental