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Answer

is HST profit from Quick Method taxable?

‘Profit’ made from utilizing the Quick Method Election is not taxable.

What is gifi cide in schedule 125 for phsp

Use GIFI code 8620, Employee Benefits, to record premiums paid to a Health Spending Account for an employee.

Provincial tax deduction

I recommend that you use CRA’s online payroll calculator. Here is the link: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/payroll-deductions-online-calculator.html

Non-resident with Canadian source income?

I don’t believe that the workplace in Canada constitutes a permanent establishment for your business because you have no control over the workplace. However, the answer to ‘country of taxation’ depends on whether you are operating your business through a corporation or as a sole proprietor (i.e. not incorporated). If your business is incorporated in … Continue reading Non-resident with Canadian source income?

How to include a shareholder loan amount in your personal income

So long as the company has sufficient retained earnings, clear the shareholder account through the ‘cash dividends’ account. Record the following entry: (a) Debit Cash Dividends (equity), and (b) Credit Shareholder Receivable (asset).

Canadian US NON Rental property owners

No, you do not need to apply for an ITIN in this case. Please keep track of your days spent in the US to see if you meet the Substantial Presence Test (SPT). If this test is met, then you will be treated as a US tax resident. To get out of US tax residency, … Continue reading Canadian US NON Rental property owners

Interest deduction on Existing Rental Property

There aren’t any specific forms to fill out in order to trace the use of the funds received from the 1st mortgage. Should the CRA conduct an audit, provide them with bank statements that show how the funds were used.

Home Office Deduction without receipt

To determine the amount that you can deduct in respect of rent paid in part for the use of a home office, follow these steps: 1. Multiply the rent + utilities paid by 50% (since you are responsible for only 1/2 of these costs). 2. Multiply the amount calculated in step 1 by the % … Continue reading Home Office Deduction without receipt

As a non-resident of Canada with a mutual fund held in canada, would that mutual fund’s distribution that are RoC be subject to withholding tax?

Distributions that are a return of capital and capital gains realized from the disposition of mutual fund units are not subject to a non-resident withholding tax.

Add Mortgage To existing Rental Property

It depends on what the proceeds from the mortgage are used for. For example, if the proceeds from the mortgage are used for personal expenses, then the interest paid on the mortgage will be non-deductible. This is true even if the mortgage is secured against a rental property. On the other hand, if the proceeds … Continue reading Add Mortgage To existing Rental Property

Can a non-resident eligible for Security options deduction – Paragraph 110(1)(d)?

Yes, a non-resident employee can claim a deduction on his Canadian Non-Resident Personal Tax Return pursuant to paragraph 110(1)(d) of the Canadian Income Tax Act.

Canadian pension income(CPP, OAS, other pension ) receiving by non-residents

Since she became a non-resident of Canada, she should contact her Pension Plan Administrator and Service Canada to inform them about her non-resident status. In this manner, the Payer in Canada will deduct taxes at source from the pension payments made to her. The rate of tax is 15% for periodic pension payments and 25% … Continue reading Canadian pension income(CPP, OAS, other pension ) receiving by non-residents

Will my wife be double taxed

If she moves to France with her children, and (a) she does not maintain a home in Canada, and (b) you, her husband, are not residing in Canada, then she will be treated as a non-resident of Canada for tax purposes. This means that her French income will not be taxable in Canada.

TN Visa and Moving Expenses

If you incurred the moving expenses prior to becoming a resident of Canada, then the moving expenses incurred will not be deductible from your Canadian income.

General rate income Pool (GRIP)

Generally speaking, the GRIP balance is calculated on a yearly basis when filing a company’s corporate tax return. The GRIP balance in the year is equal to: + Opening GRIP Balance in the Year + Active business income in excess of $500,000 in the year + Eligible dividends received in the year – Eligible dividends … Continue reading General rate income Pool (GRIP)

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