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How to complete IRS Form 6252

Hi Leslie, the purpose of this form is to allow you to defer the payment of capital gains tax until the proceeds are received from the seller. For instructions on how to complete this form, see https://www.irs.gov/pub/irs-pdf/f6252.pdf

CPA Online Courses Tax Receipts

Hi Ying, report the fee on Schedule 11 of your T1 return.

Foreign Income for a Canadian Corporation

Hi Tim, since the work is performed in Canada, the income is eligible for the small business deduction.

Gift Deed Transfer from Parents account in india to Canada

Hi Rama, The gift transferred to you by your parents is not taxable to you in Canada. The gift can be sent by a wire transfer from your parents’ bank account in India to your bank account in Canada. Your parents should prepare a gift letter stating the amount of the gift, the date of … Continue reading Gift Deed Transfer from Parents account in india to Canada

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

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