Archives: Answers

Answer

Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

Hi, thanks for watching the videos and for your question. Short answer: Usually no. Schedule 55 (Eligible Dividend Designation) is only required if the corporation is designating a dividend as an eligible dividend under the gross-up and dividend tax credit rules. If you paid yourself a regular (non-eligible) dividend, which is the case for most … Continue reading Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

Planning for becoming Non Resident of Canada

Hi Vivek, Great question, and one that comes up often when clients are planning for non-residency. 1. No departure tax on accrued interest already reported If you have been reporting the annual accrued interest from your Indian Fixed Deposits / GICs on your Canadian tax return each year (as required), then there is no additional … Continue reading Planning for becoming Non Resident of Canada

can we receive a monetary gift from my father to use for a down payment without being taxed?

Hi Emma, Thank you for your question — this is a very common concern for cross-border families, and I’m happy to clarify. 1. Canada – No Gift Tax Canada does not impose a gift tax. If your Canadian father gives you money for a down payment, neither you nor your husband will pay Canadian tax, … Continue reading can we receive a monetary gift from my father to use for a down payment without being taxed?

Financial Planning for Non-Resident Canadians returning back to Canada and also tax Tips

Hi Harshad, Thank you for your question. Yes — we do assist Canadians returning from the U.S. with cross-border tax planning and annual filings. Based on what you’ve shared, here are the key areas we can help with: 1. 401(k) and IRA Planning Your U.S. retirement accounts remain tax-deferred when you move back to Canada. … Continue reading Financial Planning for Non-Resident Canadians returning back to Canada and also tax Tips

Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

Hi Rohan, CRA’s T2209 instructions can seem contradictory, but the rule is actually straightforward: U.S. FICA (Social Security + Medicare) is always eligible for the Foreign Tax Credit for Canadian residents, even if the person has 40 credits and will later receive U.S. Social Security benefits. Here’s why: The general rule says foreign public pension … Continue reading Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

Can I claim capital loss on a crypto gift ( I disposed) that had its value decreased since the day of the purchase?

Hi Elnyara, Great question — and one that comes up often with cryptocurrency holders. 1. Yes, gifting crypto is considered a “disposition” for tax purposes Under CRA rules, cryptocurrency is treated as capital property (unless you are running a business of trading). When you give crypto away as a gift, the CRA considers this a … Continue reading Can I claim capital loss on a crypto gift ( I disposed) that had its value decreased since the day of the purchase?

Can I write-off inventory sourcing expenses that are paid with cash to non-businesses?

Hi N, Great question — and it’s an important one for anyone sourcing inventory from Facebook Marketplace, Kijiji, or similar platforms. Does CRA require receipts? CRA requires you to keep source documents for every business expense. But “source documents” are defined very broadly. They are not limited to formal store receipts. CRA states that acceptable … Continue reading Can I write-off inventory sourcing expenses that are paid with cash to non-businesses?

OAS/CPP/Bank Savings Account Interest only source of income as a Non Resident- NR4 slips. Tax filing as a Non Resident. Is it required?

Hi Janis, Thanks for your detailed question — you’ve raised all the right points. Here’s how it works: 1. Do they need to file a Canadian tax return for 2025? Likely yes — but only for the resident period (Jan–Mar 2025). Because your parent was a Canadian resident from January to March 2025, they must … Continue reading OAS/CPP/Bank Savings Account Interest only source of income as a Non Resident- NR4 slips. Tax filing as a Non Resident. Is it required?

A non residenct Canadian cirizen

Hi Adi, Thanks for your question — I’m happy to help clarify this for you. As a non-resident of Canada, you are taxable on capital gains arising from the sale of Canadian real estate. Since you became a co-owner of your mother’s home in 2001, you may have a taxable capital gain on your share … Continue reading A non residenct Canadian cirizen

Tax implications in selling property as a partial resident

Thank you for your question. This is a common situation for Canadians moving abroad, and I’ll summarize the key tax considerations below. 1. Residency Status Residency for Canadian tax purposes is determined by your residential ties (home, spouse, dependents, driver’s license, bank accounts, etc.). If you move to India in January 2026 for work while … Continue reading Tax implications in selling property as a partial resident

Cross Border Structuring

Hi Ashwin, Great question — this is one that comes up often for Canadian business owners expanding into the U.S. and wondering whether to set up an LLC or a C-Corporation, and how the Canadian foreign tax credit, section 113(1)(a), GRIP, and eligible dividends all fit together. Let’s go through this carefully. When a Canadian … Continue reading Cross Border Structuring

part iv tax circularity

Hi Konica, Thank you for outlining your situation so clearly — this is a sophisticated pre-sale reorganization, and your concern about Part IV tax circularity is well-founded. 1. Background Recap Opco sold its operating business in August 2025, after removing the real estate from the company. Holdco, a connected corporation under the same shareholder, received … Continue reading part iv tax circularity

How to Update your date of departure on a filed return

Dear Younus, Thank you for your question. In your case, the RC151 form is not the correct form to update your departure date. RC151 is used only by individuals becoming residents of Canada to apply for GST/HST and Climate Action Incentive payments. Since you left Canada, that form does not apply. To correct your 2023 … Continue reading How to Update your date of departure on a filed return

Non resident of Canada- Personal Tax return

Dear Sandy, Thank you for reaching out. Based on the details you shared, here’s some guidance regarding your Canadian tax obligations after leaving Canada: Departure (Emigrant) Return for 2025 Since you permanently left Canada in 2025, you are required to file a final Canadian tax return (emigrant return) for the year of departure — even … Continue reading Non resident of Canada- Personal Tax return

Not filled the non resident forms NR5 in tine 2021-2025

Hi Simona, Thank you for your message and for sharing your situation. If you did not file Form NR5 for the years 2021–2025, the 15% non-resident withholding tax that Service Canada deducted from your CPP Disability payments is considered final tax for those years. Unfortunately, submitting late NR5 applications will not allow you to retroactively … Continue reading Not filled the non resident forms NR5 in tine 2021-2025

Pin It on Pinterest