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Answer

Income from babysitting my grandchildren

It appears that you are an employee and your daughter has paid employment income to you for $800 / month. She (as your employer) should issue a T4 slip to you and she should have remitted payroll taxes to the CRA. You have to include the income received on your tax return – line 101 … Continue reading Income from babysitting my grandchildren

Bought business cards from wholesale printer for resale to client, which account type is this ?

Any unsold business cards that you purchased for resale should be recorded to the Inventory Account (asset).

Car Expenses

To the extent that the car his used to carry-out your professional and business duties, the costs can be deducted. There are two ways you can handle this: 1) Have your corporation pay for the vehicle expenses and include the amount paid as a taxable benefit to you on a T4 slip. You can then … Continue reading Car Expenses

Is it better to invest in real estate Under individual or incorporate as of today taking into account any changes in the tax rules?

If you have the funds available to you personally to make a down payment on a rental property, then I recommend that you purchase the rental property in your name. You will not save tax by purchasing Canadian real estate through a Canadian corporation. This is because Canadian corporations pay a high rate of tax … Continue reading Is it better to invest in real estate Under individual or incorporate as of today taking into account any changes in the tax rules?

Paying GST/QST for less than 30k

If you have already registered for a GST/QST number, then you have to remit the the sales tax collected from Canadian customers to the CRA and Revenue Quebec, less applicable input tax credits. Do not charge GST/QST to customers located outside Canada. You will also have to file GST and QST Returns.

Union parking allowance

The value of the daily parking provided for free by your employer to you, including the deemed HST on the value of the parking, is taxable to you and will be included on your T4 (employment income) slip. I am not aware of how you can recover the deemed HST benefit.

File tax as a Permanent Residence of both US and Canada?

Hi Trinh, You can argue that you are a non-resident of Canada pursuant to the Canada-US tax treaty, because you do not have a permanent home in Canada. Your wife is staying with your daughter in Canada, and this is not a permanent home of yours. You live in the US. As such, you will … Continue reading File tax as a Permanent Residence of both US and Canada?

CCA Class On Taxi License

The CCA class for taxicabs is 16. The CCA class for licenses is 14.1.

What is the best tax structure for a couple having multiple rental income

Hi John, Thank you for your question. Do not transfer the house or condo to a Canadian corporation. Firstly, you cannot claim the principal residence exemption when transferring a principal residence to a corporation that you own. As a result, you could trigger a capital gain upon transfer. Secondly, Canadian corporations pay a very high … Continue reading What is the best tax structure for a couple having multiple rental income

2018 Dividends payment

Your company can pay dividends to you and your spouse so long as the articles of incorporation do not restrict dividend payments on the classes of shares issued to you and your spouse. Note that as of 2018, the federal government has placed restrictions on dividend payments made to family members who are shareholders of … Continue reading 2018 Dividends payment

Interest expenses in Real Estate

Hi Frank, A real estate agent or certified appraiser can determine the portion of the purchase price that is attributable to the land and the building. In cities like Toronto or Vancouver, the % of the purchase price that relates to the land tends to be higher. Note that only the building portion of the … Continue reading Interest expenses in Real Estate

Foreign Company as Shareholder in Canadian Subsidiary?

In either case, the Canadian corporation will be controlled by foreigners. This means that the Canadian corporation will not be eligible for the small business deduction and will therefore have a higher corporate tax rate (approximately 26% – federal + provincial). The major difference between the two options has to do with the withholding tax … Continue reading Foreign Company as Shareholder in Canadian Subsidiary?

Canadian corporation for US/CA citizen

Generally speaking, it is not advantageous for US citizens residing in Canada to incorporate a Canadian company, because the income earned by the corporation may be treated as sub-part F income for US purposes. This means, you will be personally taxed in the US on your Canadian corporation’s profits, and you will be taxed again … Continue reading Canadian corporation for US/CA citizen

How to claim full house rent as an employment benefit from my own corporation

Yes, you can have your corporation pay for all or a portion of your housing costs. Since you do not have a home office, the entire amount paid by your corporation to you in respect of housing will be fully taxable to you and included on your T4 slip. In addition, payroll taxes must be … Continue reading How to claim full house rent as an employment benefit from my own corporation

A few months ago I spent $100,000 to renovate an existing rental property.

Hi Mark, The renovations you made to your rental property will increase the cost basis of your property. For example, assume that you purchased your rental property for $400,000 and made $100,000 of renovations. As a result, the cost basis for your rental property will be $500,000 when calculating capital gains realized upon sale. Furthermore, … Continue reading A few months ago I spent $100,000 to renovate an existing rental property.

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