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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 Gift Deed Transfer From Parents Account In India To Canada

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 Paying CPP, GST, Income Tax

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 becoming a non-resident

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.

Query on residential status in Canada – New immigrant

The tie-breaker rules contained in the tax-treaty in respect of determining where a person is a tax resident (i.e. India or Canada) supersede both Indian and Candian tax legislation. Therefore, after applying the tie-breaker rules, if it is determined that you are a resident of India, then that is what you must follow for both … Continue reading Query on residential status in Canada – New immigrant

Employment income (E.G Salary) when received or when earned? AND employment expense (e.g. salary) when incurred or when paid

Your company must follow the accrual basis of accounting. Therefore, because the salary became payable in December 2019, your company must claim a tax deduction for the 2019 tax year. However, individual taxpayers must follow the cash method when it comes to the taxation of salary. This means that the salary payment you received in … Continue reading Employment income (E.G Salary) when received or when earned? AND employment expense (e.g. salary) when incurred or when paid

Hi Madan, I am canadian and planning to setup an online e-commerce business in USA. is it better to do Business in US with USA entity or with Ontario based corporation? which is more tax efficient?If I go with US C-COrp I Wont have any physical presence in US, so will I pay federal sales tax and Income tax in USA as Canadian?What is your Advice regarding which is most tax Efficient way?

If your business does not have a permanent establishment in the US, then I recommend that you operate your business through a Canadian Corporation (CCPC). In this case, your Canadian corporation can benefit from a low small business tax rate of only 12.5% on the first $500,000 of annual profits, and will not be liable … Continue reading Hi Madan, I am canadian and planning to setup an online e-commerce business in USA. is it better to do Business in US with USA entity or with Ontario based corporation? which is more tax efficient?If I go with US C-COrp I Wont have any physical presence in US, so will I pay federal sales tax and Income tax in USA as Canadian?What is your Advice regarding which is most tax Efficient way?

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