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Answer

What’s the capital gains tax rate in cana?

When you sell an asset or shares for profit, one half of the gain is taxable at your marginal tax rate. For example, assume that you sold shares of a Canadian company for a profit of $20,000 and you are in a 40% tax bracket. In this case, one half of the capital gain will … Continue reading What’s the capital gains tax rate in cana?

Incentives for moving business to canada?

Hi, I am not aware if such incentives are available.

Are royalty fees a deductible Business Expense?

Yes, royalty fees are a deductible business expense.

Non-Resident Withdrawal – RESP

Hi, I am assuming that your child is a non-resident too. The tax impact for your child (making the withdrawals) has to do with child’s residency status and not your status (parent). Your child (beneficiary) can receive the original contributions made by his/her parents to the RESP on a tax-free basis. However, withdrawals made that … Continue reading Non-Resident Withdrawal – RESP

Selling Expenses

Reasonable money spent on repairs and maintenance to get the house ready for sale can be deducted as selling expenses. Improvements (like buying a new boiler) are added to the cost of the property and reduce the gain on sale.

Working as a consultnt for US Compny without any entity in Canada

Hi Rajiv, Your best option is to open a Canadian corporation. Then have your Canadian corporation send invoices to the American customer for services rendered. The American customer will make payment to your Canadian corporation’s bank account (can be in USD or CAD $). In this way, your Canadian corporation will be taxed on its … Continue reading Working as a consultnt for US Compny without any entity in Canada

how to reduce capital gains paid when selling a business?

Hi Amandeep, Consider selling the shares of your corporation in order to take advantage of the lifetime capital gains exemption (LTGE). If you qualify for the LTGE, then you can avoid paying tax on the first $830,000 (approximately) of profit made on the sale of your corporation’s shares. This exemption is available to Canadian shareholders, … Continue reading how to reduce capital gains paid when selling a business?

Selling property in Costa Rica

Hi Fabiana, The Canadian tax reporting requirements for your property in Costa Rica depends on whether you sold this property when you were a resident of Canada or a non-resident of Canada. Non-Resident If you sold the property in Costa Rica when you were a non-resident of Canada, then you do not have to report … Continue reading Selling property in Costa Rica

How to report cash foreign inheritance

Hi Aahh, The foreign inheritance you received is not taxable to you in Canada. However, you do have to report cash held in a foreign country on form T1135, foreign income verification statement, if the total cost amount of all of your foreign assets is greater than $100,000. Form T1135 should be attached to your … Continue reading How to report cash foreign inheritance

Set up Online Business & Rental property business

Thank you for reaching out to me. My responses to your questions are as follows: 1. My fee to incorporate a company is $918 plus tax. This includes the following: – Articles of incorporation; – Company by-laws; – Officers / Directors / Shareholders ledgers; – Share Transfer Register; – Directors resolutions; – Share Certificates; – … Continue reading Set up Online Business & Rental property business

Can Sole Proprietor have 100% foreign business income

Hi Salem, You can operate as a sole proprietor in Canada with overseas income. The income along with the related business expenses should be reported in Canadian dollars on form T2125, Statement of Business Activities. Form T2125 should be attached to your Canadian personal tax return for the year. If you are operating in your … Continue reading Can Sole Proprietor have 100% foreign business income

Canadian Doing Online Business in US

Hi, thanks for reaching out to me. Do not open up a LLC to operate your online business in the US. LLCs cause double taxation for Canadians. You can either operate your business through a Canadian corporation or a US C-corporation. Both options are acceptable.

Sub contractor — Courier

Couriers do not need a business number to deduct business expenses in Canada. If your business name is the same as your first and last name, then a business number is not needed. In all other cases, your business will require a business number.

Dividends Paid to Family Member of Medical Doctor

Income splitting is limited now through the use of dividends paid to family members of an owner of a professional corporation (e.g. medicine PC) . Under the new rules, dividends can be paid to family members so long as these conditions are met. • The family member is 18 years of age or older; • … Continue reading Dividends Paid to Family Member of Medical Doctor

What is the Tax implication in canada as i am working from canada and getting salary in india after TDS in my NRO account in India ?

Hi Anil, Your Indian employer must register for a Canadian payroll account number, because you (employee of Indian company) are physically working in Canada. This is known as a shadow payroll. As a result, Canadian payroll taxes should be deducted from your paychecks and remitted by your employer to the CRA. You should also receive … Continue reading What is the Tax implication in canada as i am working from canada and getting salary in india after TDS in my NRO account in India ?

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