Archives: Answers

Answer

Form TD1 completion

You will be a ‘part-year tax resident’ for the 2019 year. As a result, you will be eligible for the Basic Personal Tax Credit for the period of time that you are a resident of Canada (September to December 2019). You will file a part-year resident tax return for the 2019 year with the CRA, … Continue reading Form TD1 completion

Non-resident incorporation

As a non-resident of Canada, you can own 100% of the shares of a Canadian corporation. However, certain provinces require that some of the directors of the corporation be Canadian residents. Having said that, you can continue to operate as a freelancer (sole proprietor) in Peru and you can incorporate a Canadian company in the … Continue reading Non-resident incorporation

Spousal support

A corporation cannot claim the Spousal Tax Credit. You can claim the Spousal Tax Credit on your personal return if your spouse has an income below $11,809.

Ways for a candian entrepenuer to pay themselves in a general Partnership

Generally speaking, the partners in a general partnership do not receive a salary. However, the profits of the partnership are allocated to each partner based on their % ownership in the partnership. Note that cash-distributions are not taxable to the individual partners. Instead, the individual partners pay personal income tax on the net partnership profits … Continue reading Ways for a candian entrepenuer to pay themselves in a general Partnership

Am I allowed to earn interest on collected hST in a trust Fund??

As long as you have immediate, liquid access to this trust fund, then I don’t see a problem. If your company is incorporated, then the funds should be held in trust for the corporation. It is your responsibility to make sure that HST payments are made on-time to the CRA.

Charging HST for freelance project management services given to US based company

Your company in Canada will not have to charge HST to your US client (i.e. US address as per invoice).

Tax Form T2 Line 300

Line 9970 is part of GIFI Schedule G140 (not required). Line 9999 is the company’s net income after tax for accounting purposes.

Child Care Benefits Review

It looks like the CRA is trying to verify if the children live with you in Canada, which is one of the criteria for receiving Canada Child Benefits.

Is It Worth Incorporating A Business That Solely Deals With Commercial Real Estate Investing?

Consider paying yourself a reasonable salary as a manager of the company in order to reduce the company’s taxable income. Or you could set up a property management company to bill your commercial real estate company for management fees. The management fees will be tax deductible for the commercial real estate company and taxable to … Continue reading Is It Worth Incorporating A Business That Solely Deals With Commercial Real Estate Investing?

Gift Deed Transfer From Parents Account In India To Canada

There is no monetary limit from a tax perspective. A gift of $40,000 made to you by your parents will not be taxable to you.

Tax Form T2 Schedule 125 Income Statement

Line 8762, Business Taxes, on GIFI Schedule 125 relates to fees and charges paid by a business to the government. It does not relate to corporate income taxes. Corporate income taxes are entered on line 9990. You are supposed to make an estimate of the corporate income tax expense for the year and enter this … Continue reading Tax Form T2 Schedule 125 Income Statement

Do you deduct sub contractors off your yearly income to get you net income

Yes, payments made to subcontractors for worked performed are tax-deductible and reduce your taxable income from the business.

US born person – Canadian Citizen Applying for ITIN

I don’t believe your W7 application will be processed successfully because you are a US citizen and you are eligible for an SSN. If you are eligible for an SSN, then you are not eligible for an ITIN. Please double-check with the IRS / Social Security Administration.

Corporate tax

Thank you for your positive feedback. We do host webinars occasionally, which we post to our blog: http://madanca.com/blog The corporate capital gains tax rate of 25% will be applied to the profit of $80,000 made on the sale of the property by the corporation. This amounts to $20,000 of capital gains tax. Note that one … Continue reading Corporate tax

Taxes in Bank interest in egypt

According to the treaty, the tax deducted from the interest payments made by the Egyptian payer (e.g. bank) to the resident of Canada cannot exceed 15%. However, as a resident of Canada, you are taxable on your global income and you will be taxed at your marginal Canadian tax rate. You can claim a foreign … Continue reading Taxes in Bank interest in egypt

Pin It on Pinterest