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Corporate Tax Rate for Property Management Company

The property management company in the 3-tier structure will pay corporate income tax at the small business rate of 13.5% (Federal + Ontario). The property management company does not have to have more than 5 full time employees in order to take advantage of the small business tax rate. Note that the investment corporation, which … Continue reading Corporate Tax Rate for Property Management Company

My kids have Canadian citizenships except for my wife. Would I need to file income tax to CRA?

If your wife and children are now permanently living in Canada, then all of you will be treated as tax residents of Canada. Tax residents of Canada are liable for Canadian income taxes on their worldwide income. If you are still paying payroll taxes in Japan because you are working in Japan, then claim a … Continue reading My kids have Canadian citizenships except for my wife. Would I need to file income tax to CRA?

assistance in filing our US and Canadian taxes

I can help you. You will have to file a Canadian tax return as a resident of Canada, along with your wife. This is under the assumption that both of you are now living in Canada permanently and do not intend to return to the US in the near future. Both of you will be … Continue reading assistance in filing our US and Canadian taxes

Non-resident of canada

H Patrick, the CRA will likely classify you as a resident of Canada, because your spouse is living in Canada. However, for greater certainty, you can submit form NR73, Determination of Residency Status, to ask for their opinion.

What are the specific forms that I Have To submit to IRS if I live in US and has A TFSA account in Canada?

Hi Sherri, you have to submit forms 3520 / 3520A to the IRS in respect of your Canadian TFSA.

Can I claim 1% credit on first $30000 even if my sales are less than $30000 for HST quick method or is it pro rate basis

Hi Tito, the 1% credit will only apply to the sales that you have made up to $30,000. For example, if your sales are $8,000, then you will receive a credit of $80 (1% x $8,000).

can a business owner claim the hst paid on purchased vehicle in a Quarterly hst filing .

Hi Danny, yes, if the vehicle is used in the business and purchased during the quarter.

American with camadian PR working remotely for american company

Hi Andrea, if you are an employee of an American company and living / working in Canada, then your US employer must begin deducting Canadian payroll taxes from your paychecks, and must remit payroll taxes to the CRA. Some employers don’t want this hassle, so they prefer to enter into a contractor relationship with their … Continue reading American with camadian PR working remotely for american company

Rental proprty used as primary residence

If the duplex is made up 2 separate self-contained units, with separate addresses, then you can only claim one of the two units as your primary residence. This means, one unit will be subject to capital gains taxes upon sale. However, if the duplex is “one unit” with the same address, and you have never … Continue reading Rental proprty used as primary residence

Is it possible for my corporation to loan money to a person who is not an employee or shareholder?

Yes, so long as the person receiving the loan is not a family member of the shareholder. Charge a market rate of interest and reasonable repayment terms. No downsides, other than the loan not being repaid.

Non-Resident Canadian

Hi Ken, if you have legally separated from your wife, but your children still live in Canada, then you will very likely be treated as a tax resident of Canada.

Non Resident Canadian

Hi Ken, no. He cannot become a non-resident, since his spouse and children are living in Canada.

Tax Waiver (Regulation 105 Waiver)

You could apply for a tax-waiver (regulation 105) to stop withholding tax from payments made to you by your Canadian customer. BUT, the tax only applies to payments made in respect of services physically performed in Canada. This will come to a small amount, since you are only working physically in Canada for a few … Continue reading Tax Waiver (Regulation 105 Waiver)

If a shareholder took a loan from the company to pay for a downpayment on a home dwelling, How is that accounted for and how to account for it over time?

Thank you for your kind feedback. An employee can receive a loan from his employer (corporation) and not have to pay tax on the loan proceeds, if: – the amount of the loan is reasonable – the interest charged on the loan is at market rates – the amortization period is fair (e.g. 25 years) … Continue reading If a shareholder took a loan from the company to pay for a downpayment on a home dwelling, How is that accounted for and how to account for it over time?

Where does My shareholder account fall on the company’s balance sheets And Do I eventually need to pay it back?

The shareholder loan represents the money that your company owes you for expenses that you paid on behalf of your company, less shareholder loan repayments made to you. For example, assume that you paid $40,000 of expenses on your company’s behalf during the year. Of the $40,000, your company had repaid you $15,000. This means … Continue reading Where does My shareholder account fall on the company’s balance sheets And Do I eventually need to pay it back?

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