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Thank you for your questions. My responses are as follows: > The $30,000 that has been set aside for the business will be taxed. Each partner is taxed on their share of the partnership’s income earned in the year, regardless whether all of the cash profits have been distributed to the partners. > To compute … Continue reading Canada: General Partnership Earnings Example

You should file an amended T2 return and Schedule 3 for the year in which the dividends were paid/declared.

Yes, that is correct. GST that is recovered by claiming input tax credits cannot be deducted as an operating expense.

Yes, you can. Gifts are not taxable to the recipient in Canada.

The amount of the loan will be taxable to your son. This is because your son does not deal at arm’s length with you, unless your son repays the entire loan within one tax year from the year during which the loan was made.

Even if there is an overall loss, I still recommend that you prepare Schedule 7 to ensure completeness of the tax filing. However, if you don’t fill out Schedule 7 there won’t be any impact since the company has an overall loss, and so the small business deduction is not being claimed. Furthermore, Schedule 4 … Continue reading DIY T2 Schedule 7 and Claiming Non Capital Losses of Previous Years

According to the Canada-US tax treaty, 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 residence in both Canada and the US, then you are a resident of the country where your personal and economic … Continue reading Moved from Canada to US but have not filed CRA income Tax

If the capital gains arose from the sale of investments that you purchased from your funds (not your parents’ savings), then you have to record the capital gains in your personal income. From what I understand, you are the one who is depositing money into the bank account from your savings.

Corporation’s with revenue in excess of $1,000,000 must electronically file their tax returns with the CRA. In your case, you can paper-file your Uncle’s T2 Corporate Tax Return using 2D Bar Codes – see https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/completing-your-corporation-income-tax-t2-return/2d-code.html However, for faster processing, I recommend that you electronically file the T2 return. Consider buying Turbo-Tax for corporate tax return … Continue reading E-file Number Requirement

A sole proprietorship will have a single business number registered with the CRA. However, for GST/HST purposes, the business number ends in RT0001.

Your parents should gift the sales proceeds to you. You will not have to pay income tax in Canada on the amount of the gift. A gift letter should also be prepared and kept with you should the CRA ask for it.

If you are transferring the after-tax cash savings that you accumulated in your home country prior to coming to Canada, then you will not pay tax in Canada when you transfer these funds to a Canadian bank account. You can transfer your overseas cash savings to Canada over time or in one lump sum payment … Continue reading Personal Income Tax on non-Canadian Savings

The following returns and forms need to be filed with the IRS and CRA for your American C-corporation: 1. US Federal Corporate Tax Return – 1120 (IRS) 2. Form 5472 – Information Return for a 25% Foreign-Owned US Corporation (IRS) 3. Form T1134 – Information Return for Foreign Affiliates (CRA)

The answer to your question depends on whether your company has started to carry on a business. For example, a start-up company that is marketing its business to potential customers and engaging in business development activities is considered to be carrying on business, even if it has no revenues. As such, if you have started … Continue reading Can business Operating expenses be treated as business Loss for Inactive Corporation

Yes, it could impact form T2062, Application for a Certificate of Compliance on the sale of Canadian real estate. I would need additional information from you to give you a more precise answer to your question.