Answers Archive

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.

Becoming non-resident of Canada

Thank you for your questions. My answers are below: 1) You will not pay capital gains tax on the sale of your primary residence so long as you live in your primary residence for all of the years that you own it. 2) Yes, I can prepare a departure tax return with the CRA for … Continue reading

Canadian Temporary Resident wanting to register an LLC for ecommerce business

Consider forming a US LLC to sell goods and services to American customers, after you leave Canada and become a non-resident of Canada for tax purposes. A Canadian tax resident will be double taxed if he/she does business in the US through a US LLC. For non-Canadians, LLCs are a good choice of business structure … Continue reading

Foriegn Employment income tax when received or earned (by non resident)

Individual taxpayers must report employment income in the year that the income is received. In theory, you can ask your employer to defer the payments of income made to you in order to minimize your personal income and tax for a particular year.

T2 Prior adjustments to payables in GIFI 3720?

No, you should not do that. It could trigger a tax audit. The right procedure is to amend the prior year’s corporate tax return with the correct information.

Incorporation of Canadian Entity at Ontario

Generally speaking, the US-Canada tax double taxation treaty is more favorable than the Indian-Canada double taxation treaty.

Canadian Citizen and Resident/US Expat Investing Stocks and Options

Since you are a US Green Card Holder, you have to report all income and gains from Canadian investments to the IRS, and pay US income/capital gains tax. However, you will receive a foreign tax credit on your US return for the Canadian taxes paid.

Can my brother in law living in a newly purchased condo (preconstruction) allow me to avoid paying HST

Either you, your spouse, common-law partner, or dependent child must live in the condo in order for you to avoid paying back the HST rebate on closing.

US C Corp with Canadian Holding company

If you are a Canadian resident and want to conduct an active business in the US, then the best structure is as follows: – A Canadian corporation (parent company) owning a US Corporation (subsidiary company) – You will be a shareholder of the Canadian corporation and the US corporation will carry-on the active business in … Continue reading

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