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how do i report an assignment sale of a US real estate contract on a US tax return

The answer depends on whether you made the sale through a US partnership, S-corporation, C-corporation, LLC or in your name. If you made the sale personally (i.e. in your name) then record the sales and expenses on Schedule C of your US personal tax return.

Canadians with US Investment accounts

Your clients should avoid investing in Canadian mutual funds as they could be double-taxed because of the way the IRS treats foreign mutual funds. They should limit their investment to shares of Canadian companies and bonds. Furthermore, your clients will not have to file a Canadian tax return to report capital gains, interest, or dividends … Continue reading Canadians with US Investment accounts

How do I report a GIC asset in the schedule 100.?

Record the bond at its purchase amount on Schedule 100. If the interest is paid annually, record the interest income on Schedule 125. However, if the interest is only paid at maturity of the bond, then add the interest income to the purchase amount of the bond (reported on Schedule 100) and the interest income … Continue reading How do I report a GIC asset in the schedule 100.?

can loan Payments be claimed as an asset

Loan repayments should be recorded as a reduction of the loan balance. The loan balance as of the year-end is reported on Schedule 100, and not the individual loan repayments made.

What happens to retained earnings in CCPA when all owners emigrate from Canada to USA?

If the IT consultant becomes a non-resident of Canada for tax purposes, then he will have to pay capital gains tax on the value of his shares (less the cost basis) in the capital stock of the CCPC. The value of the shares is equal to the value of the company. For an IT consultant … Continue reading What happens to retained earnings in CCPA when all owners emigrate from Canada to USA?

Paying a Non-Resident Director of a cCPC

Since your friend is a non-resident shareholder of a Canadian corporation, an NR4 slip should be prepared annually to report the dividends paid to him and the taxes deducted. The default withholding tax rate is 25%. The lower rate of 15% applies (pursuant to the tax treaty between Indian and Canada) if the dividends are … Continue reading Paying a Non-Resident Director of a cCPC

Re: Gift as in http://madanca.com/learn/canadiantaxforum/gift-deed-transfer-from-parents-account-in-india-to-canada-2/

You should have a gift letter prepared, and signed by both parties – the giver and the recipient. The date of the gift and the amount of the gift should be clearly indicated in the letter. I suggest having a Notary Public notarize the gift letter. This letter should be kept on the file, and … Continue reading Re: Gift as in http://madanca.com/learn/canadiantaxforum/gift-deed-transfer-from-parents-account-in-india-to-canada-2/

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.

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