Archives: Questions

Question

TFSA holdings

Hi Allan, I currently hold stocks in my TFSA and will be moving from Canada to the U.S. in summer 2026 for work for a couple of years. I’ve heard that once I become a U.S. tax resident, income earned in a TFSA must be reported on U.S. tax returns. Given this, would you recommend … Continue reading TFSA holdings

reg non residence tax return

Hi Allan thanks for your reply but if 216 tax return cannot be filed under VDP .Can I use form 1159 to file 10 year tax returns or regular t1 form to declare non disclosed rental Inocme and pay 25% tax on gross rental Income.Remaining unfiled taxes since 1995 I expalin in the narrative. I … Continue reading reg non residence tax return

REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

ONE OF MY NON RESIDENT CLIENT WISHS TO USE VDP ROUTE TO DECLARE CANADIAN SOURCE RENTAL INCOME SINCE YEAR 1995 TILL 2025 TAX YEAR .I TOLD HIM HE HAS TO PAY TAX @ 25% OF GROSS RENTAL INCOME PLUS SOME PENALTIES.IS IT OK TO FILE FORM 199 FOR ALL 31 YEARS OR ONLY FOR LAST … Continue reading REG VDP PROPOSAL FOR NON RESIDENCE WITH CANADIAN SOURCE INCOME.

Declare a checking bank acct as non-resident

Do you still require to declare a checking account non-resident if it doesn’t earn interest?

Option trading–can i setup a CCPC actively trading Option/stock and qualify SBD?

I’m working on to setup a CCPC and actively trading Option/stock. Will this CCPC qualify SBD and the income to be treaded as active business income with tax rate of 12% (in Ontario, <$500K)? I heard completely opposite opinions about this question. Is this area your expertise? Thank you, P.S. Trading strategy: weekly or a … Continue reading Option trading–can i setup a CCPC actively trading Option/stock and qualify SBD?

Issues from not paying Withholding Tax on Rental Income

I moved to the US from Canada end of 2024 and have not been paying withholding tax on my Canadian rental income. I recently did the following: Adjusted my 2024 tax return to put my departure date and let the CRA know i am no longer a tax resident. Filed an NR6 for 2026 and … Continue reading Issues from not paying Withholding Tax on Rental Income

Question on secondary ties.

Hi, I asked a question earlier on secondary ties. I left Canada but forgot to cancel health insurance/it expired after 1 year. How do I correct my back departure and will this make me a resident even if not used? Just noticed it wasn’t abswered but posted.

Butterfly Transactions

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Safe Income Bump

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Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

Hi Allan, Thanks so much for your helpful videos. I have regularly relied on this video to fill out my T2 for my small consulting corp: https://www.youtube.com/watch?v=jU4Td7652hs My question is about line 710 on the T2 which refers to a schedule 55. If I paid myself a dividend instead of a salary this fiscal year, … Continue reading Dividend question: does my corp need to fill out schedule 55 if a dividend was paid?

If I never cancelled my provincial health insurance for 3 years but was outside Canada living, will CRA expect I pay worldwide income?

I left Canada, never cancelled my provincial health insurance, but want to be seen as a non-resident for tax purposes. How will CRA assess this in my backdated departure?

Determination of Residency Form

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Planning for becoming Non Resident of Canada

Iam filling T1135 form & have paid Accrued Interest every year from my Fixed Deposit/ GICs in India. If I become Non resident of Canada, Will I have to pay any Departure tax on that again? Please advise.

can we receive a monetary gift from my father to use for a down payment without being taxed?

Hi Allan, My husband is a US Citizen (with PR) and I am dual. We are moving to Canada from the US in 2026. My father (Canadian) has offered to loan or gift us (whichever is easier re: tax or other issues) money for a downpayment on a house in Canada. He was told that … Continue reading can we receive a monetary gift from my father to use for a down payment without being taxed?

Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

Request your input.I’m trying to understand how CRA treats U.S. FICA (Social Security + Medicare) for the Foreign Tax Credit (FTC). CRA’s T2209 instructions say that contributions to a foreign public pension plan only qualify for FTC if: The contribution is mandatory; and It’s reasonable to conclude the worker will not receive future benefits from … Continue reading Claiming FICA taxes as Foreign tax credit if person has more than 40 credits

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