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non-resident receives income non-taxable in Canada, must be declared in my world income?

Hi Erminio, if your only source of income from Canada is Canadian interest, then you should not file a non-resident return and you should not file Schedule A. If there is another reason why you are filing a non-resident return (for example, you worked in Canada during the year), then you must complete Schedule A … Continue reading non-resident receives income non-taxable in Canada, must be declared in my world income?

Self Employment Taxed Where

Hi Kim, you do not have to file a tax return in Canada if you are a Permanent Resident or Canadian citizen. Since you live and work in the US, you will be treated as a non-resident of Canada for tax purposes. Non-residents of Canada only have to file a Canadian tax return if they: … Continue reading Self Employment Taxed Where

Eligible or Non-Eligible for CCPC

Hi Peter, yes, a CCPC can pay eligible dividends to its shareholders, to the extent that it has a positive GRIP balance. The term GRIP means taxable profits in excess of $500,000 in the year, plus eligible dividends received, less eligible dividends paid. Most CCPCs do not have a GRIP balance and are unable to … Continue reading Eligible or Non-Eligible for CCPC

balance the Opening Balance

Hi, no, this is not correct. Share capital should be equal to the monies received by the corporation for the issuance of shares in the capital stock of the corporation to shareholders.

new Business, loan or invest?

Hi, make a non-interest bearing loan to your company with no fixed terms of repayment. To do this, deposit your personal funds into the corporation’s bank account. The corporation can use those funds to pay for business expenses. The corporation does not have to pay tax on the money you deposited into the corporate bank … Continue reading new Business, loan or invest?

US Citizen offered Consulting position at canadian client of US company

Hi Robert, based on what you’ve told me, you will be treated as a non-resident of Canada and will be taxable in Canada on Canadian income only. In addition, as a US citizen, you will be taxable on global income, including Canadian employment income. In order to avoid double taxation, you can claim a foreign … Continue reading US Citizen offered Consulting position at canadian client of US company

Personal tax for money coming from abroad and incorporation tax

Hi, if you deposit money that you received from an inheritance into a Canadian bank account, then you will not pay Canadian income tax on the amount deposited. If the Canadian corporation (which you and your partner plan to setup) is controlled by you (50% + 1 vote), then the corporate tax rate will be … Continue reading Personal tax for money coming from abroad and incorporation tax

Can CMHC insurance add to ACB when selling The rental property?

Hi, CMHC is a cost of financing and is not added to the cost (ACB) of the property.

Canadian Corp loan to US corp affilate – does Canadian Corp file a US return?

Hi, C Grant. No, the Canadian corporation does not have to file a US tax return.

how to report cash withdraw from corporation that makes no profit

Hi Ali, record the cash withdrawal as a repayment of the shareholder loan owing to you.

Interest on Fixed Deposit in Inda

Hi Melwyn, thank you for your question. You are supposed to report the interest earned each year on your Canadian tax return and pay Canadian income taxes on the interest earned. In addition, foreign assets having a cost amount of more than $100,000 at anytime in the year must be reported on form T1135, Foreign … Continue reading Interest on Fixed Deposit in Inda

how to report cash withdraw from corporation makes no profit

Hi Ali, if you lent money to your company, and your company is repaying you for the amount it borrowed from you, then the repayment (i.e. cash withdrawal) does not need to be reported on your personal tax return and is not taxable. On the corporate tax return, report the cash-withdrawal as a reduction to … Continue reading how to report cash withdraw from corporation makes no profit

Canadian PR, US Alien resident, w/ Bank Accounts in Canada.

Hi, no, you don’t need to file a Canadian tax return since you only temporarily stayed in Canada, and then left. When you permanently move to Canada, you will become a tax resident of Canada at that time.

Division of rental income for tenants in Common

Hi Lauren, The % of the house expenses that can be deducted is equal to the size of the rented area divided by the total size of the home. Each of the three owners will report 1/3 of the rents collected and the deductible expenses.

Unlmtd common shares & how to declare %share distribution?

Hi, you haven’t made a mistake. The articles of incorporation do not specify who the shareholders are. You will need to prepare a corporate minute book, including share register, share transfer ledger, and share certificates. In addition, a directors resolution should be prepared for approval of the company to issue shares to the shareholders.

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