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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?

work in the States | Non Resident of Canada

File a T1 adjustment for 2017 and 2018 to get a tax refund for Canadian income taxes paid on your US income. Do not file a tax return with the CRA to report interest income from Canadian sources. Going forward, let your bank know that you are a NR of Canada and a tax resident … Continue reading work in the States | Non Resident of Canada

Tax for new immigrant

For Canadian tax purposes, the cost basis of your US investments is equal to their fair market value on the date that you permanently move to Canada. Any appreciation in the value of your US investments made prior to moving to Canada is not taxable in Canada.

Do I have to pay taxes in canada?

No, you do not have to pay Canadian income taxes because you are a non-resident of Canada based on your limited ties to Canada. When you permanently move to Canada, you will become a tax resident at that time.

2019 income taxes and HST taxes paid in the year

The HST liability account on the balance sheets is made up of these 3 amounts: 1. HST collected (credit amount) 2. HST paid on business expenditures (debt amount) 3. HST installments paid to the CRA during the year (debit amount) Therefore, the HST liability on the balance sheet should be equal to the HST collected … Continue reading 2019 income taxes and HST taxes paid in the year

Tax efficiency for selling vacant recreational real estate

Deduct the selling costs from the sales proceeds. One half of the capital gain will be included in your income in the year of sale. Furthermore, property taxes cannot be added to the cost basis of the property. Unfortunately, there is not much more that you can do to save tax.

Interest on loans for rental property

Yes, you can still deduct the interest even though it’s a new loan. This is because the loan proceeds are being used for an income-producing purpose.

Dtmax and goodwill gain

The gain from the sale of goodwill should be reported on Schedule 8 and Schedule 3 of the T2 corporate tax return.

A gift is given to small business

Record the amount received as other income on the financial statement and T2 return.

Notarized Gift letter

No, that will not be a problem from a Canadian tax perspective. Check with the bank if they will accept a notarized Gift Letter to transfer the funds.

schedule 100 balance sheet and asset recording

The gross cost and the accumulated depreciation of assets must be disclosed on Schedule 100.

Retiring and becoming Non resident of canada

When you become a non-resident of Canada, you are deemed to dispose of all of your assets (excluding cash, Canadian real estate, pensions, RRSPs and TFSAs). The deemed disposition rule applies to shares in the capital stock of a Canadian corporation. Furthermore, the deemed selling price of the shares is equal to the fair market … Continue reading Retiring and becoming Non resident of canada

Receive CAD in lieu of INR

No, so long as it’s not a business transaction, I don’t see how this would be taxable.

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