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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

Canada: General Partnership Earnings Example

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

Missed to declare paid dividends

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

Input Tax Credits

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

Can I gift 250000 dollars from India (white money) to my friend in Canada

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

Loan from corporation to son for education

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.

DIY T2 Schedule 7 and Claiming Non Capital Losses of Previous Years

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

Moved from Canada to US but have not filed CRA income Tax

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

reporting capital gain in a joint account

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.

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