Personal Tax Accountant Preparation Mississauga Toronto
At Madan CPA we specialize in delivering comprehensive personal tax services that help our clients navigate the complexities of Canadian tax regulations with confidence. Our experienced team of personal tax accountants in Mississauga is dedicated to maximizing your tax efficiency while ensuring compliance with all relevant laws.
Our Key Personal Tax Services:
1. Personal Tax Return Preparation and Filing
We expertly prepare and file T1 Personal Tax Returns for Canadian residents. This essential service helps individuals report their income, claim deductions, and reduce their overall personal tax liabilities.
2. Departure Tax Planning and Filing
Planning to leave Canada permanently? Our specialized departure tax planning services guide you through the process, including preparing necessary forms to report the fair market value of your assets and any deemed dispositions.
3. Rental Income Reporting
If you own rental properties, we assist in reporting your rental income using Form T776. Our accountants ensure that all allowable expenses are accurately deducted, optimizing your tax situation and maximizing your benefits as a property owner.
4. Capital Gains Income Reporting
Navigating capital gains and losses reporting can be complex. We guide you through using Schedule 3 for reporting gains from the sale of Canadian real estate, marketable securities, or foreign assets.
Below, you will find a comprehensive list of our personal tax filing services.
Listing of Personal Tax Return services by CPA in Mississauga and Toronto Ontario:
T1 Personal Tax Return Preparation and Filing
Our team of personal tax accountants in Mississauga expertly prepares and files T1 Personal Tax Returns for Canadian residents, ensuring that all necessary documentation is accurately completed. This service is essential for individuals looking to report their income effectively, maximize tax deductions, and minimize their personal income tax liabilities.
Rental Income Reporting (Form T776)
If you own rental properties, our team can assist you in reporting your rental income using Form T776. Ensure all eligible expenses are properly deducted to optimize your tax situation. Common deductible rental expenses include property taxes, utilities, insurance, repairs, mortgage interest, condo fees, property management fees, accounting fees, and capital cost allowance (depreciation). With our expertise, you can maximize your deductions and enhance your overall tax efficiency.
Sole Proprietorship Income Reporting (Form T2125)
For sole proprietors, we offer comprehensive assistance in completing Form T2125, which outlines your business income and expenses. Our objective is to help you fully understand your tax obligations while maximizing your eligible deductions. We also take care to ensure that you avoid reporting ineligible expenses, minimizing the risk of triggering a red flag with the CRA and facing a potential tax audit. With the support of our personal tax accountants in Mississauga, you can navigate your tax responsibilities confidently and effectively.
Employment Expenses Deductions (Form T777)
We assist employees in claiming deductions for employment-related expenses using Form T777. This form helps you identify costs incurred while performing your job that can significantly reduce your taxable income. Common deductions include home office expenses, vehicle costs, and work-related supplies. To claim these employment expenses on your T1 personal tax return, your employer must complete and sign Form T2200, Declaration of Conditions of Employment.
Moving Expenses (Form T1M)
If you’ve relocated for work, we can assist you in claiming your moving expenses using Form T1M. This service is especially valuable for individuals who qualify for deductions related to their move. To be eligible, you must move at least 40 kilometers closer to your new place of employment.
Capital Gains and Losses Reporting (Schedule 3)
Our personal tax accountants in Toronto and Mississauga assist you in accurately reporting capital gains and losses using Schedule 3. Many of our clients generate capital gains from the sale of Canadian real estate, marketable securities, and foreign assets. We work to ensure you claim the maximum allowable expenses, effectively reducing your capital gains tax liability.
With extensive experience in calculating foreign capital gains from real estate sales outside Canada, we provide tailored strategies to minimize your tax exposure. Additionally, we offer guidance on effective methods for repatriating funds received from these sales back to Canada, ensuring a smooth and compliant process.
Form T1135 Foreign Income Verification Statement
We prepare Form T1135, the Foreign Income Verification Statement, for Canadian residents. This form is required if the total cost of your foreign assets exceeds $100,000 at any time during the year. This includes shares traded on foreign stock exchanges, foreign real estate, foreign bonds, and foreign fixed deposits.
Completing this form can be particularly complex, especially if you've sold foreign assets during the year. Our team has the expertise to navigate these intricacies, ensuring accurate reporting and compliance with CRA requirements.
Lifetime Capital Gains Tax Exemption
Our personal tax accountants in Toronto and Mississauga can assist you in determining your eligibility for the Lifetime Capital Gains Exemption on the sale of your shares. Currently set at $1,250,000, this exemption allows taxpayers to avoid paying capital gains tax on the first $1,250,000 from the sale of qualified small business corporation shares. Our knowledgeable team will guide you through the qualifications and help you maximize this beneficial tax strategy, ensuring you retain more of your profits when selling your shares.
Departure Tax Return Preparation and Filing
If you are permanently leaving Canada, our team provides specialized services for preparing your Departure Tax Return. This process includes:
● Form T1161: We assist you in reporting the fair market value of your assets at the time of departure, ensuring compliance with Canadian tax regulations.
● Form T1243: Our experts help you report the deemed disposition of assets and calculate any resulting capital gains and losses, making sure you accurately reflect your tax obligations.
● Form T2209: We guide you in claiming Foreign Tax Credits, which can help you mitigate the risk of double taxation by accounting for taxes paid to foreign jurisdictions.
Cryptocurrency Tax Reporting
At Madan CPA, we specialize in assisting both day traders and passive investors in accurately reporting their cryptocurrency gains and losses on personal tax returns. Our services include guiding clients in the proper classification of these gains and losses, ensuring they are reported correctly as either capital gains/losses or business income/losses, tailored to each client’s unique circumstances.
Short-Rentals - AirBnB
At Madan CPA, we have extensive experience in tax reporting for short-term rentals listed on platforms like Airbnb and other online marketplaces. Our team ensures that profits are accurately classified as either passive income on Form T776 or active business income on Form T2125, depending on your specific situation. Additionally, we are well-versed in the HST implications related to short-term rental activities, providing you with comprehensive guidance to navigate these tax considerations effectively.
Personal-use property, such as a vacation home or cottage, is not required to be reported on Form T1135.
To qualify for the lifetime capital gains exemption, you must be a resident of Canada, and the shares sold must be Qualified Small Business Corporation (QSBC) shares. QSBC shares are defined as those where three specific conditions are met: (a) At the time of the sale, at least 90% of the fair market value of the company’s gross assets are used to carry on an active business in Canada; (b) In the 24 months preceding the sale, at least 50% of the fair market value of the company’s assets were used to carry on an active business in Canada; and (c) The seller, or a person related to the seller, must have owned the shares for at least 24 months prior to the sale.
You may classify the income as active business income if you can demonstrate that you provide additional services beyond room and board, and that the value of these services constitutes a significant portion of the rental charge. Examples of such services include offering breakfast, concierge services, access to amenities like a swimming pool, movie tickets, dry cleaning, and housekeeping.
Income from the sale of employer-issued Restricted Stock Units (RSUs) is classified as employment income. The taxable benefit from the RSUs is subject to payroll taxes, and this amount will be reported on your T4 Slip (Statement of Employment Income). Since you did not incur any cost to acquire the RSUs, the full proceeds from the sale will be taxable.
The full amount of a fixed monthly car allowance is considered a taxable benefit and is subject to payroll deductions. This benefit will be reported on your T4 Slip (Statement of Employment Income). If your employer completes Form T2200 (Conditions of Employment), you may deduct the portion of your vehicle expenses related to your employment duties, calculated using Form T777.
Client Testimonial:
I found the service to be very timely and most of all helpful. Even though I was not directly a client of the firm Al was willing to provide me useful advice which helped me in making an important decision with respect to how I should structure my future employment and the potential tax benefits. This type of service goes along way in building a solid client base founded on good customer service! - Sonu Sikand
Related Videos
Hello,
I’m a resident of the US working in Canada. Your articles are a great resource for those not familiar with personal tax preparation in Canada.
Thanks,
J
Hello,
I’m a resident of the US working in Canada. Your articles are a great resource for those not familiar with personal tax preparation in Canada.
Thanks,
I haven’t filed personal tax returns for the last 11 years. What is the best way to get in compliance with Canadian tax laws?
Hi Viviano,
If the CRA hasn’t requested any filings for outstanding returns, the best option is to file under the Voluntary Disclosure Program. Under the VDP, you can file the previous 10 years of tax returns. Any penalties and interest will be waived if the VDP criteria are met.
Please see our VDP article for more information – http://madanca.com/learn/articles/entry/voluntary-disclosure-program-for-canadian-taxpayers/
Hi,
I’m an HST registrant operating a small business. How do I report income and expenses on my personal tax return?
Hi Leroy,
As a registrant, you will be required to report HST collected and HST paid (input tax credits) on your HST return. As such, the figures reported on your personal tax return should exclude the HST portion of income and expenses.
If my company paid me a bonus in 2015 related to 2014, which year do I report the income?
You will be taxed in the year you receive the income. You company will issue a T4 slip to report this income and withhold payroll taxes (i.e.: CPP, EI, income taxes).
Hi Mandeep,
You will be taxed in the year you receive the income. You company will issue a T4 slip to report this income and withhold payroll taxes (i.e.: CPP, EI, income taxes).
Hi
I receive Canada Child Tax Benefits (CCTB). Is this taxable income?
Hi Tally,
No, CCTB payments are not taxable.
Dear Sir,
I am Neeraj Sharma. I want to assess my tax obligations in Canada for the year 2017.
I am Canadian PR but work in the US(my paychecks automatically deduct tax for US IRS). I have been in Canada for around 100 days in 2017. And i have the following ties with Canada:
1) I have been paying rent from May 2017 till now.
2) I have bank account and credit card in Canada and have been using both.
3) I have also used OHIP(Ontario Health Insurance Program) few times to do routine check-ups in Windsor Canada.
4) I have already paid around CAD $1000 to CRA assuming that i will be tax resident in Canada.
Please advise. I would like to call you to understand my tax situation. I want to take your services for tax filing for Canada.
Neeraj
Hi Allan,
Your website are great source of information. I am have moved to US from Canada and it’s been a year now. I am ready to file my first income tax return as a resident alien in US and was wondering if you can help to provide some guidance on details regarding my Canadian rental property, in particular depreciation, cost of land (I don’t know the cost of land from the price I paid to buy the house 5 years back) and other key details as such which forms to use.
Thank you very much in advance,
Sam
Hi Saurabh, as non-resident of Canada owning a Canadian rental property, you must remit a monthly tax to the CRA equal to 25% of the monthly gross rents collected. To recover part or all of the taxes remitted, you should file a Section 216 Return with the CRA. Please read my guide for further details: http://madanca.com/non-resident-rental-guide-section-216-2016
Hi Allan,
Thanks for information on filing Canadian return for rental property (I am already doing that). Could you please help with US income tax return where I have to provide details regarding my Canadian rental property. I am keen to get your guidance on how to depreciate.
Thank you,
Saurabh
Hi Saurabh, complete Schedule E of the US return to report rental income and expenses. Complete form 4562 to calculate depreciation for US tax purposes.
I meed to file 2016, 2017 & 2018
What fees do you charge to prepare these taxes
Hi Dale,
Thank you for reaching out. My fee to prepare a personal tax return is $200 + disbursements and taxes. The fee can be higher if you have a business or investments. Can you please email the particulars of your situation to me? My email address is amadan@madanca.com.
Hi Team ,
I came to Canada with Work Permit in October 2018,i have the job in Canad and have T4.
For my wife she is in Open-work permit and she is working as a Independent Contractor her employer is as a consultancy in USA and she does not have T4 .
In this case what will be best solution to file the Tax return for my wife .
Providing that you and your wife are maintaining a permanent residence outside Canada, and your and her stay in Canada is temporary, you can both argue that you are non-residents of Canada. You will have to file a Canadian non-resident tax return and pay Canadian taxes on your Canadian employment income. Your wife will have to file a US return (1040-NR) and pay US income taxes on her American self-employment income.
HI, I was Non Residence Canadian from Feb/2017 till Dec/2018. Now I am back to Canada and filled taxes. Do I need to apply for Child tax benefit? In CCTB Application from, asking about international income.
Do I need to share full international income or donot need it?
Hi Ashok,
To apply for the Canada Child Benefit (“CCB”) submit form RC66 (Canada Child Benefits Application) to the CRA or apply online using MY Account. For the purposes of calculating the CCB, you must disclose your income prior to becoming a resident of Canada. This foreign income will not be taxable in Canada, but it will impact the amount of CCB that you are entitled to.
I am a Canadian Citizen holding funds in TFSA. I am moving to USA and acquiring a green card. I have heard that any Capital Gains/Income within TFSA will be taxed by US and hence it is best to withdraw all Funds from TFSA, prior to acquiring a US green card. Is this true?
Hi Ash,
Any income or capital gains realized in a TFSA while you are a US resident will be taxable in the US. The IRS does not recognize the tax-exempt status of TFSAs. So it’s best to close your TFSA before moving to the US.
Hi,
I am Canadian citizen with a dependent who is 16 months old. I am currently vacationing outside of Canada and wanted to understand my residency status and also benefit entitlement. I left Canada March 11, 2019. I do have secondary residential ties that include, health card, driver’s license, furniture and permanent address to stay in Canada. Would you be able to advise based on the above mentioned information?
Hi Ridda,
To properly answer your questions, I will need a full list of your personal, economic and residential ties to Canada. I will also need to know where you moved to and what ties that you have to your new country. If you are simply on vacation, with the intention to return to Canada, then you are still a tax resident of Canada.
I am wondering if you are versed on how to report “prize winnings” for a taxpayer who played a specific sport worldwide during the taxation year. The way it worked was if the team won the tournament in that particular country, a specific amount of money was paid out to the Sports Organization and then monies were divided out and paid to the players. There is no paperwork given to the team members, however, obviously this was how this taxpayer made a living during that taxation year. Please advise on where to report this income? I am guessing on Line 104 “Other Income”, however, there is no TSlip to back this up. Your response to this query is much appreciated.
Hi Kim,
If the taxpayer is a professional gambler, then the winnings are taxable and should be reported on form T2125, Statement of Business Income & Expenses. For non-professionals, the winnings are tax-free.
Hi. I became permanent resident of Canada in September 2018. And in November 2018 I left Canada. I came back in September 2020. During the time I was permanent resident of Canada and living outside of Canada, i.e. between November 2018 and September 2020, I had no Canadian income or residential ties with Canada. My source of income was a salary in my home Country where I was working during that time.
I wanted to request information if I am required to file taxes for 2020 or all the years I have been a permanent resident of Canada i.e. 2018-2020?
Thanks
Hi AJ,
You permanently moved to Canada in September 2020. Therefore, you became a tax resident of Canada in September 2020, and you need to file a part-year-resident return for the 2020 year (September to December 31 2020), which I can prepare for you. Do not file a tax return with the CRA for the 2018 and 2019 tax years.
Hello
We are Canadian citizens. Residing and working in USA. We hold a property in Ontario and it is rented out. Do we have to pay taxes in Canada for US salary income?
Hi There,
If you are a non-resident of Canada for tax purposes, then you do not have to pay Canadian taxes on your US income.
Hello Madanji,
I’m a non resident Candian, residing in USA, looking for filing my CRA tax returns. Could you please help me with this?
Thanks,
Hi Sanjay,
Yes, I can help you. Can you please email me more information about your situation, including your sources of income? My email address is amadan@madanca.com