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Lump Sum Pension Income from a Canadian Employer – Taxation in USA

Registered Pension Plan (RPP) withdrawals made by a resident of Canada are subject to a withholding tax of 20%. Since you made the withdrawals prior to moving to the US, the amounts withdrawn are not reportable on a US tax return.

Distribution taxes for CCPC

This is a very common problem. You have two options: 1) Prorate the amounts reported on the tax slips issued by the REITs for 9 months of the year (Jan to August). Included the prorated amount in your company’s income. 2) Report the previous year’s tax-slips (e.g. December 2018) on the current year’s corporate tax … Continue reading Distribution taxes for CCPC

Software as A Service Lifetime Subscription Asset or Expense?

Record software subscriptions as an expense. You did not purchase the software and are paying a fee to have access to the software for a period of time.

UAE and employment Expenses

The transportation allowance is taxable to you. You can deduct vehicle expenses, including capital cost allowance, so long as you are required by contract to use your vehicle to carry out your duties of employment. The employment portion can be deducted, but your employer will need to sign form T2200, declaration of conditions of employment.

How to withdraw from Business account

There are two options available: Pay a dividend OR pay a salary from your corporation to you. Either option is acceptable, and you can combine them too.

Doing Business in the US

You have two options of doing business in the US: US Limited Partnership You can flip homes in the US through a US LP. With this set-up, you will avoid double taxation and limit your liability. However, you will not be able to defer taxes. Income earned in the year is taxable to you, even … Continue reading Doing Business in the US

Canadians Doing Business in America

You should open up a US Limited Partnership (US LP). With this structure, your liability will be limited and you will avoid double taxation.

Am I resident for tax purposes?

You may be a tax resident of Canada. According to the double taxation treaty between the UK and Canada, you are a resident of the country where your permanent home is located. A permanent home can either be rented or owned by you. If you have a permanent home in both Canada and the UK, … Continue reading Am I resident for tax purposes?

t2 SCHEDULES

Complete the following schedules: T2 Return (Schedule 200) Schedule 101 (opening balance sheet – new business) Schedule 100 (balance sheet) Schedule 125 (income statement) Schedule 50 (shareholder information) Schedule 24 – new incorporation

Rental property deductions

The money you spent on renovations will be added to the cost of the property. The property cost (including renovations) can be depreciated at a rate of 4% per year. However, if you have no income in the year or a loss, depreciation expense cannot be claimed in that year.

uS citizen selling cottage in canada

If you are a US citizen following in Canada and are selling a Canadian cottage, then you should be aware of the following: – Your lawyer will hold-back 25% of the gross sales proceeds – To recover the taxes held-back, file an Application for a Certificate of Compliance with the CRA – With the application, … Continue reading uS citizen selling cottage in canada

Residential Status

For tax purposes, you became a tax resident of Canada starting February 2019. The CRA will argue that you intended to remain in Canada permanently starting February 2019, as evidenced by your PR card, and the fact that you came back to Canada in October.

tax free allowance from a corporation

You must be an employee (and receive a salary/wages) in order to receive a tax-free vehicle allowance. You can receive reimbursement for your home office expenses even if you are not an employee and you are only receiving dividends.

Income Exempt Under A Tax Treaty

As a Canadian resident, you are taxable on your global income, including foreign pension income. To avoid double taxation, you can claim a foreign tax credit on your Canadian tax return for foreign taxes deducted from your foreign pension income.

Newcomer income before moving to Canada

No, this is not considered income.

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