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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 ?

What is the best way to sell realestate held in corporation?

Hi, The company should sell the commercial building (i.e. asset sale). The alternative, a share sale, will result in a large capital gain, because the cost basis of your shares in the company’s capital stock is very low. However, the cost basis in the land and building owned by your company is much higher. Once … Continue reading What is the best way to sell realestate held in corporation?

Independant Consultant

Hi Reuel, No, do not charge your US customer GST nor PST. I recommend that you use QuickBooks software or Wave for bookkeeping.

Capital Gain Tax on property

Hi Ken, I assume that you did not transfer title of the property to your mom after you moved out. Also, I am going to assume that you and your mom own 50% of the property each. However, you should prepare a written agreement signed by both you and your mom to document the % … Continue reading Capital Gain Tax on property

Sale of primary residence

Hi Craig, When your girlfriend changed the use of her property from her primary residence to a rental property, there was a ‘deemed sale’ at that time. As a result, the appreciation of the property from the date of purchase to the date of the ‘deemed sale’ becomes a taxable capital gain. However, since she … Continue reading Sale of primary residence

unbalanced Trail Balance

Hi, it’s very difficult for me to answer this question without examining the books of account first. Sorry that I couldn’t be of more help.

i want to pay myself in my business with T4, how can i do it?

Hi George, Your company must first obtain a Payroll Account Number from the CRA. They can issue this over the phone by calling 1-800-959-5525. Next, you must calculate the payroll taxes to be deducted from your paycheck and the amount of payroll taxes to be remitted by your company to the CRA. To do this, … Continue reading i want to pay myself in my business with T4, how can i do it?

Reporting UCC

Hi, it depends on how the asset was acquired. If you paid for it on behalf of the corporation, then you should record the amount paid to the shareholder loan account.

Incorporate to do uber

Hi, you can incorporate a company in Canada, and the corporation can lease a vehicle to be used by you as an Uber driver. If your income (after expenses) is below $75,000, then I recommend that you operate as a sole proprietor. This is because, in my experience, corporate tax savings really start when the … Continue reading Incorporate to do uber

Canadian Corporation with opportunity to work in US

Hi, Your Canadian corporation will need a US EIN, and will also need to provide your American client with form W8-BEN-E to avoid a 30% US withholding tax on payments received by your Canadian corporation. I can prepare both for a fee of $300 CAD (one time) + disbursements and taxes. In addition, your Canadian … Continue reading Canadian Corporation with opportunity to work in US

cap gain on principal residence

Hi RA, if you tear-down your home and build a new one, then the principal residence exemption will not be applicable for the old home. This is because you never sold the old home and so there is no gain.

Property Flipping company Structure?

Hi Vik, It makes sense to flip houses through a Canadian corporation, which I will refer to as OPCO. This is because OPCO pays a low rate of income tax on profits derived from flips – 13.5%. You could also setup a holding corporation (HOLDCO). This will provide for creditor protection of the cash savings … Continue reading Property Flipping company Structure?

Recording undercoated capital cost

Hi Ali, Record the following entry for depreciation: Debit Depreciation Expense – $100 Credit Accumulated Amortization – $100 Depreciation expense is reported on the income statement. Accumulated amortization account is reported on the balance sheet as reduction of the capital cost of the asset ($500). The balance sheet presentation should be as follows: – Capital … Continue reading Recording undercoated capital cost

Beginning real estate investing in US and Canada

Hi Ken, The recommended structure for Canadians to own US real estate is a Limited Partnership. The Limited Partnership will own the property, collect the rents, and pay for expenses. There are two types of partners in a Limited Partnership setup: 1. Limited Partners – These are individual Canadian investors. The limited partners collectively own … Continue reading Beginning real estate investing in US and Canada

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