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Answer

Need to apply for reseller certificate in USA, do I need to open LLC and have EIN before applying for the reseller certificate

No, you do not need to open a US entity. You can do business with Amazon.com through a Canadian corporation. Make sure you apply for a US EIN for your Canadian corporation and provide this number to Amazon.com

Previously-purchased computer now used for work

You need to determine the fair market value of the computer on the date that you began using it for business purposes. You can then claim CCA on the FMV.

Monetary gifts to family members

Both family members and unrelated individuals can make a gift to you, and you will not pay tax in Canada on the gift received. The gift letter should be notarized in Dubai.

Gift from uncle/aunt/cousin

Yes, you can.

Transferring Primary Residence to Corporation

Prepare a gift letter and transfer title of the property for $0. A lawyer can assist with this. The deemed sales price for tax purposes is equal to the fair market value of the property on the date of the gift. A certified appraiser can determine the fair market value. Since the property is your … Continue reading Transferring Primary Residence to Corporation

Meaning of Line 7 : Spouse or common-law partner amount in TD1 – 2020 Personal Tax Credits Return

Hi, Enter $13,229 on Line 7 – Spouse Amount.

company has received a reassessment for additional HST owing relating to prior tax years

Match the additional HST paid to the expenses that it relates to and increase those expenses accordingly. If you are unable to match, then record the HST paid and not recoverable as HST Expense.

Delaware LLC for canadian residents

Do not do business in the US through a US LLC, because you will be double taxed. While a US LLC with multiple members is considered to be a partnership for US purposes, Canada treats a US LLC as a corporation, regardless of the number of members. I recommend that you and your partner do … Continue reading Delaware LLC for canadian residents

Medical credit for medical expenses paid by brother credit card

So long as you pay your brother, you can claim a medical expense tax credit for the amount paid.

Transfer house from corporate ownership to personal ownership

Thank you for your kind feedback. Your Dad’s CCPC (Dad Inc.) can do the following: 1. Gift the property to you. This will be treated as a deemed disposition and capital gains tax will be triggered, payable by Dad Inc. Furthermore, the gift will be treated as a taxable benefit to you, so I do … Continue reading Transfer house from corporate ownership to personal ownership

How do I account for the 50% non-deductible expenses on Meals & Entertainment?

Do not subtract the non-deductible portion of meals and entertainment expenses from the company’s income. Furthermore, when completing the GIFI schedules report the entire amount of the meals and entertainment expenses for the year. Then complete Schedule 1, Calculation of Net Income for Tax Purposes. On Schedule 1, add-back the non-deductible portion of meals and … Continue reading How do I account for the 50% non-deductible expenses on Meals & Entertainment?

Foreign Income from three countries

If you are a tax resident of Canada, then you will be required to report your global income to the CRA and pay Canadian taxes. You can claim a foreign tax credit on your Canadian tax return for foreign taxes paid. First, you should make a determination of your residency status. Your residency status with … Continue reading Foreign Income from three countries

tenants moved and sale of house took 4 months. Will mortgage interest, insurance and Utilities be included in capital expenses while calculating capital gain

Carrying costs-incurred for a vacant home ready for sale cannot be considered as capital expenses or outlays when calculating the capital gain realized on the sale of the vacant home. Furthermore, they cannot be shown as expenses on form T776 during the vacancy period.

sale of shares

When an individual shareholder sells his shares for more than the amount that he paid to acquire them, there will be a capital gain for that individual. One half of the capital gain will be included in his personal income in the year of the sale. It does not matter where the proceeds from the … Continue reading sale of shares

Foreign Tax Credits Investing

Generally speaking, the capital gains tax rate is higher in Canada. The Canadian capital gains tax rate is 25%, whereas the US long-term rate is 20%. However, short-term capital gains (stocks held less than a 1 year prior to sale) are taxed at an individual’s marginal rate in the US, whereas in Canada the rate … Continue reading Foreign Tax Credits Investing

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