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Delaware LLC for canadian residents

Do not do business in the US through a US LLC, because you will be double taxed. While a US LLC with multiple members is considered to be a partnership for US purposes, Canada treats a US LLC as a corporation, regardless of the number of members. I recommend that you and your partner do … Continue reading

Medical credit for medical expenses paid by brother credit card

So long as you pay your brother, you can claim a medical expense tax credit for the amount paid.

Transfer house from corporate ownership to personal ownership

Thank you for your kind feedback. Your Dad’s CCPC (Dad Inc.) can do the following: 1. Gift the property to you. This will be treated as a deemed disposition and capital gains tax will be triggered, payable by Dad Inc. Furthermore, the gift will be treated as a taxable benefit to you, so I do … Continue reading

How do I account for the 50% non-deductible expenses on Meals & Entertainment?

Do not subtract the non-deductible portion of meals and entertainment expenses from the company’s income. Furthermore, when completing the GIFI schedules report the entire amount of the meals and entertainment expenses for the year. Then complete Schedule 1, Calculation of Net Income for Tax Purposes. On Schedule 1, add-back the non-deductible portion of meals and … Continue reading

Foreign Income from three countries

If you are a tax resident of Canada, then you will be required to report your global income to the CRA and pay Canadian taxes. You can claim a foreign tax credit on your Canadian tax return for foreign taxes paid. First, you should make a determination of your residency status. Your residency status with … Continue reading

tenants moved and sale of house took 4 months. Will mortgage interest, insurance and Utilities be included in capital expenses while calculating capital gain

Carrying costs-incurred for a vacant home ready for sale cannot be considered as capital expenses or outlays when calculating the capital gain realized on the sale of the vacant home. Furthermore, they cannot be shown as expenses on form T776 during the vacancy period.

sale of shares

When an individual shareholder sells his shares for more than the amount that he paid to acquire them, there will be a capital gain for that individual. One half of the capital gain will be included in his personal income in the year of the sale. It does not matter where the proceeds from the … Continue reading

Foreign Tax Credits Investing

Generally speaking, the capital gains tax rate is higher in Canada. The Canadian capital gains tax rate is 25%, whereas the US long-term rate is 20%. However, short-term capital gains (stocks held less than a 1 year prior to sale) are taxed at an individual’s marginal rate in the US, whereas in Canada the rate … Continue reading

Capital Gain on join Property

Yes, you may have to pay capital gains tax, as your name is on the deed. To avoid capital gains tax, you would need to prove that you are not the beneficial owner and have no financial interest in the property. This is usually accomplished by way of a Bare Trust.

canada emergency small business loan

Unfortunately, your company is not eligible for the Canada Emergency Small Business Loan, because it did not have a payroll in 2019.

Canada Non-resident Withholding Tax refund

Practically, it will be difficult for you to recover the overpayment of tax. You can write to the international tax services office, and ask them to provide a refund of the excess tax deducted.

Uber Driver: Should Gross Bus.Income Include Total Fare Breakdown As Shown On Uber Summary?

Report the gross income including HST on line 3A of Form T2125. Then, subtract HST included in gross income on line 3B of Form T2125. Claim operating expenses on lines 4B to 4V of form T2125.

reynold ramlal 1 second ago Hi Allan Can you advise I am a canadian who is starting a job in chicago I will be entering the US with my OPT visa which will allow me to work, however the company has filed for me to get my h1b which may become available in october, my status in the U.S is considered NRA, I will be staying in the u.s for a few years. should i seek to change my status in canada

A Optional Practical Training (OPT) is temporary employment that is directly related to an F-1 student’s major area of study. This means that you are a non-resident alien for US tax purposes, and as such you should be a tax resident of Canada still. However, if you are in the process of applying for an … Continue reading

T1135, Foreign Real Estate, how to calculate the Maximum cost amount of a vacant land not generating income each year

Cost refers to the amount paid, and not market value. Having said that, gifted land has a cost basis equal to its market value on the date of the gift multiplied by the foreign exchange rate at that time. Purchased land has a cost basis equal to the purchase price, plus closing costs, multiplied by … Continue reading

amend last year’s corp tax return?

You will need to amend the T2 Return, along with Schedules 125 and 100 for the updated financial statements. For detailed instructions, see this link https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/after-you-file-your-corporation-income-tax-return/reassessments-adjustments-your-t2-return/requesting-a-reassessment-your-t2-return.html

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