Answers Archive

Foreign business T1135

Hi There, If the company is incorporated, file form T1134 Summary and Supplement. If the company is a partnership or a sole proprietorship, file form T1135. Vacant commercial properties held in a foreign partnership or your personal capacity are reported on form T1135.

Canadian Tax Residency

Hi Helena, You likely became a non-resident of Canada when you left Canada to study in the UK in 2020. You have to wait for the CRA to issue a Determination of Residency Letter before filing. Based on the information provided, you do not have a filing obligation with the CRA for the 2023 tax … Continue reading

Income tax for indian seafarer having PR card but sailing from india

Hi Sandeep, If you have a valid PR and your ties to Canada are stronger than to India, you will continue to be a tax resident of Canada even if you are outside Canada for more than 183 days.

Canadian Rental Income for a non resident

Hi Janice, Complete a Section 216 Non-Resident Return. DO NOT file a T1 non-resident return. Our fee to prepare a Section 216 Non-Resident Return is $400 (one owner) + disbursements. If you would like to proceed, please complete this checklist and return it to me: https://madanca.com/section-216-checklist/

real estate ownership to family traust

Hi Hezi, You can transfer property to a family trust. If the fair market value is more than the cost amount of the property, you will pay capital gains tax in respect of the transfer.

Switching from Restaurant owner to Restaurant lessor

Hi Tien, Apply for a new GST/HST number. Separate the income and expenses into 2 periods: (a) restaurant operator and (b) rental property. The profit made in period (a) is active and taxed at the small business tax rate. The profit made in period (b) is passive and taxed at the passive income tax rate. … Continue reading

Foreign property -more than one home Abroad

Hi Mohan, You can have more than one personal use property, including a home that is occupied by your parents that you visit on occasion. Personal use property is not reported on form T1135.

Filing income tax for closed business

Hi Erin, File your personal tax return based on the T4 slips that you received. The owner is responsible for any unpaid payroll taxes, not you.

CCPC Loss Carryback: T2 Schedule 4, but then what? GIFI? Amend?

Hi Norm, No, you don’t have the amend the previous year’s tax return due to a loss-carry-back. Record the tax refund you receive in the current year as a reduction to the current corporate income tax expense.

How do I enter T5008 and T5 in the T2 return for my corporation?

Hi Eric, Report dispositions of capital property (including securities) on Schedule 6 of the T2 corporate tax return. In addition to this, report dividends received on Schedule 3 of the T2 Return. Lastly, complete Schedule 7 of the T2 Return to report all investment income, including capital gains, interest and dividends. Remember to complete the … Continue reading

do i need to pay tax from interst I earn from GIC when i am not a canada citizen nor residence

Hi Andrew, Interest payments made by a non-arms-length person/entity (including a financial institution) to a non-resident of Canada are not subject to a non-resident withholding tax. In other words, the interest income received is not taxable in Canada.

Non-resident spouse came back to Canada for 5 months

Hi Zeeshan, Report the actual rent collected in the year and the taxes remitted based on the rent collection. Expenses for the whole year can be deducted if you make reasonable efforts to rent the unit.

oas received in Portugal?

Hi David, As a non-resident of Canada, you can receive OAS payments so long as you resided in Canada for at least 20 years starting from age 18.

Non-Resident with Canadian Rental Property

Hi There, A spousal rollover is not available for non-residents and so your spouse’s death will result in a deemed disposition of the property to the extent of your spouse’s ownership interest. If your spouse owned 50% of the property at the time of her death and the total gain is $800,000, then her share … Continue reading

CEBA loan Tax Treatment

Hi Jignesh, The forgivable portion of the loan is taxable in the year that the loan is received. A tax deduction of the forgivable portion is allowed in the year that the loan is repaid. The fee to prepare a corporate tax return is $1,650.

Archives: Answers