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Filing return as emigrant /non-resident

Please file a T1 general return and specify the date of emigration on the return (April 2022). In addition, contact Service Canada to inform them that you became a non-resident of Canada in April 2022, so that they begin deducting non-resident withholding tax from CPP and OAS payments made to you.

would I have to hire a real estate agent to transfer a house from corporate ownership to personal ownership?

You do not need to hire a realtor. A lawyer can complete the sales transaction for you.

deemed disposition of rental building

Hire a certified appraiser to determine the breakdown of the selling price between land and building. Or you can ask this information from your realtor. The City Assessment is not reflective of fair market value, and should not be used.

How to avoid double taxation with India

As you correctly pointed out, India’s tax year is different from Canada and ends on March 31, 2023. Until the Indian return is filed and a tax assessment received, enter an estimated amount of Indian income and Indian tax paid on your Canadian tax return. Once the Indian return is filed and assessed, you will … Continue reading How to avoid double taxation with India

How to Report Capital Gains Distributions from REIT on T2

Report capital gains distributions on Schedule 6 of the T2 corporate tax return.

Principal residence gift to family member (adult)

This is a bad idea. If you transferred your property to your sister for below fair market value (e.g. for $1), then the CRA will reassess the sales price to be equal to the fair market value of your property at the time of the transfer. What’s worse is that your sister’s cost basis in … Continue reading Principal residence gift to family member (adult)

Tax policies on formation of new company

Hi Vinesh, The corporate tax rates on active business income are as follows: 1.12% – if the corporation is not controlled by non-residents of Canada. To meet this requirement, at least 50% of the corporation’s voting shares should be owned by residents of Canada. Note that the 12% rate applies to net active business income … Continue reading Tax policies on formation of new company

How does my income in India calculated in Canada?

Hi Ram, If you moved to Canada with the intention to live in Canada permanently, and you have a permanent residence (either rented or owned in Canada), then you are likely a tax resident of Canada pursuant to the Canada-Indian tax treaty. Having said that, I need a list of all of your ties to … Continue reading How does my income in India calculated in Canada?

Tax implications for Canadian Shareholders of the merger of two uS companies

The capital gain should be the difference between the fair market value of the consideration received in excess of the amount paid for the original shares. Consideration includes cash and non-cash (i.e. shares of Teladoc).

I plan to rent my home on AirBnB for most of the year for that do I have to charge HST?

If you collect more than $30,000 from short-term rentals, then you must charge HST and file an annual HST return. The rate of HST in the province of Ontario is 13%. In addition, you can claim input tax credits for HST paid on rental expenses.

Can I claim import duties as iTCs?

Yes, you can claim both the HST on the product, as well as HST on the brokerage fee ($17.37) as ITCs.

Personal house and land of more than 10 acres all principal residence?

Only 1.2 acres of the land on which the primary residence is situated will qualify for the principal residence exemption. The shop will not qualify.

Moved from US to Canada

If the person moved to Canada permanently, then he is a factual resident of Canada, starting from the date he moved to Canada. For US purposes, he will be a resident up to the date of departure, and a non-resident thereafter. This is assuming that the Person did not keep any primary ties with the … Continue reading Moved from US to Canada

Principal residence Exemption

Please complete Form T2091 and Schedule 3 with your 2022 tax return and claim the Principal Residence Exemption.

If I inherited foreign real estate through a deceased relative’s will and sold it off in the same tax year do i need to file t1135 or t1142 or both?

If the property was a personal use property at the time of inheritance, then do not complete form T1135. If the property was a rental property at the time of inheritance, then complete form T1135. Lastly, the sales proceeds deposited into a bank account outside Canada must also be reported on form T1135. Do not … Continue reading If I inherited foreign real estate through a deceased relative’s will and sold it off in the same tax year do i need to file t1135 or t1142 or both?

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