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Question on secondary ties.

Answer: Secondary Ties, Health Insurance & Correcting Your Departure This is a very common situation, so you’re not alone. For Canadian tax residency, CRA does not look at any one factor in isolation. Residency is determined based on your overall residential ties, which are grouped into primary and secondary ties. 1. Provincial health insurance is … Continue reading Question on secondary ties.

If I never cancelled my provincial health insurance for 3 years but was outside Canada living, will CRA expect I pay worldwide income?

Not cancelling your provincial health insurance does not automatically make you a Canadian tax resident, but it is a secondary residential tie that CRA will consider when assessing your tax residency, especially if you are trying to backdate your departure from Canada. How CRA determines tax residency CRA does not look at any single factor … Continue reading If I never cancelled my provincial health insurance for 3 years but was outside Canada living, will CRA expect I pay worldwide income?

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

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