Answers Archive

Create Company to purchase and subivide land or setup joint venture?

To save tax, incorporate a company to purchase the lots and to develop them. All expenses should be paid by your corporation.

Remote work

You will need to comply with Indian payroll requirements if the employee is working in India.

How do I read the NR4s in order to file as I should have been issues T5s/T3s but I forgot to tell my Financial Advisor.

If you are a non-resident of Canada, and you earned interest income, dividend income and/or rental income from Canadian sources, then do not file a Canadian tax return. Wait until your financial adviser issues the correct NR4 slips.

Non-resident filing canadian return with T5 Slip

Ask your bank to cancel the T5 slip and issue an NR4 slip instead. Do not report interest income on a Non-Resident Candian Tax Return.

Gift received from parents

Please do the following: > Prepare a gift letter. On the letter specify the name of the giver (grandmother), the name of the recipient (you), the amount of the gift, and the date of the gift. > The gift letter should be signed by you, your grandmother, and a witness. > A notary public should … Continue reading

Self employed business Expenses

That doesn’t seem right to me. Your income tax bill should go down, as your business profit decreases. In any case, you are supposed to deduct expenses incurred in the year that are related to your business, in order to compute the profit. HST paid on business purchases can be claimed as ‘input tax credits’, … Continue reading

Best tax program to file if I reside in Ontario but Work in Quebec?

Try TurboTax tax preparation software. Claim a tax credit for your stay at home spouse with no income. The maximum credit you can claim for her is $11,809.

does an invoice need to be itemized

This is question is better answered by a lawyer, but from my knowledge, it does not appear to violate any laws.

How long does the gift cash need to be in account before I use it to buy a house in canada?

You can immediately use the money received via gift to purchase a home, and there is no waiting period for tax purposes. The bank can ask you for the source of the funds.

Gift from Brother Living Abroad

Yes, prepare a gift letter as you suggested. It should be witnessed by a third party, signed by you, your brother, and signed by a notary public. In this way, you will not have to pay Canadian income tax on the cash gift received from your brother.

Resident Tax Status

If she plans on staying in the UK for the foreseeable future, then she is likely a resident of the UK and non-resident of Canada for tax purposes. This is because: (a) she has no primary ties to Canada, (b) she is living and working in the UK, and (c) she has minimal secondary ties … Continue reading

when does a scholarship become taxable?

It appears that you became a resident of Canada when you moved to Canada in 2012 on a work-visa. This is because you remained in Canada full-time from 2012 to present, and received your PR card. In the past, I have encountered a similar situation as yours, where the CRA opined that the individual became … Continue reading

Tax for selling property outside Canada

If you sell the Indian property prior to coming back to Canada, then the cash received from the sale and transferred to a Canadian bank account will not be subject to Canadian tax.

Should I incorporate my real estate investment properties?

The benefit of incorporating a company to hold rental properties is that a corporation will provide you with liability protection. The disadvantage is that Canadian corporations pay a high rate of corporate income tax (i.e. 50%) on net rental profits. So it’s a trade-off between liability protection and higher taxation.

Qatar non tax treaty country

So long as you had no primary ties to Canada, minimal secondary ties to Canada, and you lived in Qatar with your family for the past 3 years, you and your family can claim non-resident status with Canada.

Archives: Answers