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Registered for GST Number, for import export number. But Sales less than 30,000 per year. Should i collect GST from Customer?

You are not required to register for a GST/HST number and you are not required to charge GST/HST to customers because your sales are less than $30,000.

Preparing income tax return for a person who moved from the US to Canada

My responses are as follows: 1. Do not claim a tax deduction on line 256. The income is not tax exempt. Any income earned by your clients outside of Canada prior to coming to Canada is not taxable in Canada. In particular, US income earned by your clients prior to coming to Canada should not … Continue reading Preparing income tax return for a person who moved from the US to Canada

Can a Corporation do two things with 1 business?

A corporation can conduct multiple businesses. You do not need to open a separate corporation for each business. However, to minimize risk, I suggest that you purchase real estate in a separate corporation. That way, if one corporation fails or is sued, it won’t impact the other corporation.

Incorporated but still operating as sole-proprietor

Yes, this is the correct approach because you continued to operate as a sole proprietor until March 2019.

Filing 2018 1040NR for US Rental Property

If you are filing a US 1040-NR (non-resident alien tax return), you cannot claim exemptions nor the standard deduction.

How to claim money lent to your own corporation in canada, ontario

Do not report shareholder loans made by you to your corporation on your personal tax return. In your example, the corporation owes you $500. This is not income, but is a shareholder loan payable. When the company has available cash, it can pay you back the remaining balance ($500) tax-free. Note that shareholder loans should … Continue reading How to claim money lent to your own corporation in canada, ontario

What is the best way to invest in u.s. Real Estate (Rental Property) As a Canadian?

The best way to invest in the US, where you are a Canadian and your partner is an American, is by forming a US Limited Partnership (US LP). The US LP will purchase the property. You and your partner will be ‘limited partners’ collectively owning 99% of the partnership. There will be one General Partner, … Continue reading What is the best way to invest in u.s. Real Estate (Rental Property) As a Canadian?

Partnership Incorporation in US with US and Canadian Partner

Thank you for your question. I am assuming that you are carrying on an active business in Canada with your American partner. If this is the case, then you and your American partner should form a Canadian Corporation to do business in Canada. I further suggest that you own a majority of the voting shares … Continue reading Partnership Incorporation in US with US and Canadian Partner

Can i take Depreciation Cost since the Time of Conversion Personal to Rental?

If you converted your primary residence into a rental property, then the cost basis of your property is equal to the fair market value of the property at the time of conversion. Subtract the land value from the total value at the time of conversion to arrive at the value of the building. The building … Continue reading Can i take Depreciation Cost since the Time of Conversion Personal to Rental?

Incorporate a business

If you continued to collect payments and invoice customers from your sole proprietorship, then you can record the income on your personal tax return. You can fill out and file form GS44 to claim an exemption from collecting HST on the sale of your business assets to your new corporation. I’m assuming that your vehicle … Continue reading Incorporate a business

If we are planning to buy a house but have plans to rent out the basement, can we still be classified as first time home buyer?

Yes, you can still be considered as a first time home buyer so long as you did not buy a home in the previous 4 years. You do not need to be registered as a business owner to rent your basement. Report the rental income collected and expenses incurred on form T776, which should be … Continue reading If we are planning to buy a house but have plans to rent out the basement, can we still be classified as first time home buyer?

Taking Depreciation on rental property

Yes, you can claim Capital Cost Allowance. This should be claimed when filing a Section 216 Non-Resident Rental Return.

Documents needed for tax return by mail

Submit your W2 slip plus any other tax slips that you have along with your 1040 return to the IRS.

Incorporate immigration practice business or Keep Sole proprietorship?

Hello, If you have no immediate need to use the cash generated from the business profits for personal purposes, then incorporate. In this manner, you will avoid payment of high personal tax on the business profit, and your corporation will only pay 12.5% corporate tax on the business profit.

When is a rental property sold by non-resident of canada considered treaty exempt property?

According to the Canada-US tax treaty, gains from the sale of real estate are first taxable in the country where the real estate is located. As such, Canada has the right to tax the gains from the sale of your Canadian rental property. Your lawyer will hold-back 25% of the sales proceeds, until you provide … Continue reading When is a rental property sold by non-resident of canada considered treaty exempt property?

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