Answers Archive

Schedule 546

This form is only for companies incorporated in Ontario, and not for Federally incorporated companies.

A US C-corporation owned by a Canadian holding company is a tax efficient structure for Canadians doing business in the US. The following points should be noted: 1. A US C-corporation pays a federal corporate tax to the IRS at a rate of 21% on business profits. State taxes are extra. 2. After-tax profits can … Continue reading

Gifi Code of business-use-of-home expenses and Gifi Code of tax-free vehicle allowance in schedule 125

Record ‘business-use-of-home expenses’ in GIFI Schedule 125, Line 8911 (real estate rental). This is akin to rent expense for an office space. The tax free vehicle allowance expense should be recorded in GIFI Schedule 125, Line 9281 (Vehicle Expenses).

filing T2 return, T3 slip not till march

The accountant may have reviewed your investment statements to calculate the gains and income for the year ended November 30. Once the final T3 slip arrives in March, the return can be amended or an adjustment can be made in the subsequent year if the adjustment is small.

Can I use Canadian witholding on annuity payments as a tax credit on my US return?

Pursuant to the Canada-US Tax Treaty, annuity payments are subject to a 15% withholding tax. To avoid double taxation, claim a foreign tax credit on your US 1040 return for the Canadian taxes deducted.

are canadian corporations taxed on foreign income if they don’t carry on business in canada

A company incorporated in Canada is taxable on its worldwide income. This is because a company incorporated in Canada is a tax resident of Canada.

gifi code for overhead

Enter the amount of rent paid on GIFI Code 9811. Do not amend the previous year return, because both rent and management fees are tax deductible.

Do I enter my business’s GST payments to government as an item on schedule 125

GST/HST collected from customers and GST/HST payments made to the CRA should be recorded in a GST/HST liability account, which is reported on GIFI Schedule 100, Balance Sheet.

PRE on Rental

Yes, you will pay capital gains tax when you sell your property on 67.6% of the capital gain since 67.6% of the property is used to earn rental income.

Gift Deed Transfer From Parents Account In India To Canada

Her 2 adult children will not pay Canadian income tax on the cash gifts received. If the cash is kept in an Indian account belonging to the adult children and the amount is more than $100,000 per child, then the children must report this amount to the CRA on form T1135, foreign income verification statement. … Continue reading

retain Earning adjustment

As you know, the prior year’s closing retained earnings should appear on the current year’s balance sheet as opening retained earnings. In your friend’s case, this was not done properly. Therefore, you will likely need to redo the financial statements for the current year.

Returning Canadian and sale of Property after return

Yes, you can sell your Canadian rental property in the current financial year ended on December 31, 2020.

Paying CPP, GST, Income Tax

The answer depends on whether you are being hired as an employee or an independent contractor. If you are an employee, then your employer is responsible for all payroll deductions and remittances, including CPP, EI, and income tax. Your employer will issue a T4 slip to you. On the other hand, if you are an … Continue reading

becoming a non-resident

According to the double taxation agreement/treaty between Canada and Hong Kong, you are a resident of the country where your permanent home is located. A permanent home can either be rented or owned. If you have a permanent residence in both Canada and Hong Kong, you are a resident of the country where your personal … Continue reading

How much money can be received from India as inheritance

You do not have to pay Canadian income tax on the value of a foreign inheritance that you receive. You may need to complete Form T1135, foreign income verification statement, to report your foreign inheritance, if the cost amount is more than $100,000 CAD.

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