Started Spanish and Japanese on here first. Figuring Spanish for an easier language (My gods and devils, so many verbs) and Japanese for a more difficult language since I got into anime and such. Checked a few others I plan for later, but doing this now. The structure is far easier compared to Japanese, but the tones and consonant jumps throw me off. My mouth isn't used to it yet so it's like getting used to a tongue twister.
So, is this contextual? For example if someone wanted to say "Toronto is in America" (sorry, Canada), and I wanted to correct that person I would use this word then, right? I wouldn't use this as a general negative statement like "No, I do not live in Toronto", or would that also be acceptable?
As an answer to "Toronto is in the US" yes, it's ok to use 不对. (I was going to say it was "correct" but that could confuse someone).
The second example you give uses the verb zhu (to live/reside). To make a negative statement about it, you negate the verb. You can just say 不, 不 + verb or repeat all the affirmative sentence, but starting with a 不. You can also negate just the adverbial complement if you want emphasis.
nǐ zhù zài Toronto ma?
bú，wǒ bú zhù zài Toronto。
There is also a place in Ohio called Toronto, but I had to look that up to make sure