Answers Archive

Uber Driver: Should Gross Bus.Income Include Total Fare Breakdown As Shown On Uber Summary?

Report the gross income including HST on line 3A of Form T2125. Then, subtract HST included in gross income on line 3B of Form T2125. Claim operating expenses on lines 4B to 4V of form T2125.

reynold ramlal 1 second ago Hi Allan Can you advise I am a canadian who is starting a job in chicago I will be entering the US with my OPT visa which will allow me to work, however the company has filed for me to get my h1b which may become available in october, my status in the U.S is considered NRA, I will be staying in the u.s for a few years. should i seek to change my status in canada

A Optional Practical Training (OPT) is temporary employment that is directly related to an F-1 student’s major area of study. This means that you are a non-resident alien for US tax purposes, and as such you should be a tax resident of Canada still. However, if you are in the process of applying for an … Continue reading

T1135, Foreign Real Estate, how to calculate the Maximum cost amount of a vacant land not generating income each year

Cost refers to the amount paid, and not market value. Having said that, gifted land has a cost basis equal to its market value on the date of the gift multiplied by the foreign exchange rate at that time. Purchased land has a cost basis equal to the purchase price, plus closing costs, multiplied by … Continue reading

amend last year’s corp tax return?

You will need to amend the T2 Return, along with Schedules 125 and 100 for the updated financial statements. For detailed instructions, see this link https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/after-you-file-your-corporation-income-tax-return/reassessments-adjustments-your-t2-return/requesting-a-reassessment-your-t2-return.html

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 Since you made the withdrawals prior to moving to the US, the amounts withdrawn are not reportable on a US tax return.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

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

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

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

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