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Transfer property from my corporation to myself

Hi Hannah, You have to sell the property from the corporation to yourself for fair market value. If the property has increased in value, there will be a capital gain.

Filing tax- working in the US under tn , spouse and kids in Canada

Hi Kenny, You are likely a tax resident of Canada under the Canada-US tax treaty because your home, spouse, and child are in Canada. Therefore, you are liable for Canadian income tax on your global income. You must claim a foreign tax credit to avoid double taxation. My services & estimated fees are as follows: … Continue reading Filing tax- working in the US under tn , spouse and kids in Canada

tax filing for Canadian resident with US based company

Thank you for your question. I do work with non-Canadians living in Canada and doing business in the US. I must first determine whether you are a resident of Canada or non-resident of Canada for Canadian tax purposes. To make this determination, I will refer to the tie-breaker rules contained in the UK-Canada tax treaty … Continue reading tax filing for Canadian resident with US based company

Penalty on late filing of t2

Hi Sam, The corporate tax return filing due date is 6 months after the company’s year-end. For example, if a company has a year ending on March 31, 2024, the corporate tax return must be filed by September 30, 2024. If you pay the corporate tax balance due within 3 months of the company’s year-end … Continue reading Penalty on late filing of t2

Taxation for other private corporation and non resident dividends

Hi Sam, The corporate tax rate for a non-CCPC is 27% on average (varies by province). Assuming a non-CCPC made a profit of $100,000, a corporate tax is payable for $27,000. In addition to this, a non-resident withholding tax of 25% is deducted from dividends paid to non-resident shareholders. Assuming a dividend payment of $73,000, … Continue reading Taxation for other private corporation and non resident dividends

how do i enter tax paid for last year in T2

The best practice is to amend the previous year’s corporate tax return to correct the error. It should not trigger an audit since there will not be any change to the taxable income. If you are uncomfortable doing this, then record the amount in this year’s “Current Income Tax Expense.” The current income tax expense … Continue reading how do i enter tax paid for last year in T2

Tax residency

You cannot be a tax resident of Canada and Portugal at the same time according to the double taxation treaty between the 2 countries. You are deemed to be a resident of the country where your permanent home is located. If you have a permanent home in both Portugal and Canada, you are a resident … Continue reading Tax residency

Emigration ccpc year end

Hi Sam, The CRA should have reflected the updated year-end if you specified the deemed year-end on Box 61, checked “Yes” to Box 66 and selected “Other Private Corporation” in box 40 on the amended T2 return. If you did all of the above and the CRA has not updated the year-end, then contact the … Continue reading Emigration ccpc year end

Dissolving provincial corporation

Hi Sam, If the computer has limited to no value, claim a depreciation expense for the remaining cost on the balance sheet. Otherwise, record $3,000 to dividends, as you received a company asset for your personal benefit. Do not adjust the share capital, common shares.

Tax Residency In Australia VS. Canada (online small business)

Hi Stephanie, The corporate tax rate for Australian small businesses is 25%. A small business is a business with annual sales of less than $50 million AUD. The corporate tax rate for Canadian small businesses is 12%. A small business is a business controlled by Canadian residents with active net income of less than $500,000 … Continue reading Tax Residency In Australia VS. Canada (online small business)

Working remotely outside Canada

Hi Syed, If you will work from Canada for a Denmark based employer and the employer does not have an office or branch in Canada, then the employer should set up a Canadian payroll account to employ you or they should engage the services of a PEO in Canada to employ you. As a Canadian … Continue reading Working remotely outside Canada

Non-resident earning a canadian pension further contributing to RRSP

Hi VMV, You cannot reduce the non-resident withholding tax deducted from pension payments by contributing to your RRSP. You are correct that a non-resident can contribute to his RRSP providing he has available room. A better option is to file a Section 217 Non-Resident Tax Return to get a refund of the tax withheld.

Is renting 30% of my principal residence a bad idea?

Hi Franklin, It’s not a bad idea. You can still claim 100% of the principal residence exemption when you sell your house if you do not claim Capital Cost Allowance, you not alter the structure of the home (e.g. by creating a separate basement entrance), and the profit from rent is not your primary motive … Continue reading Is renting 30% of my principal residence a bad idea?

RC268 Form cross border commuter

Hi Doug, Enter the amount of the employer contributions to the 401-K money purchase plan. This amount will flow to line number 7 on Page 2 of form RC268 and to line 206 of your T1 General Return. The CRA uses his amount to calculate the Pension Adjustment. The Pension Adjustment reduces your RRSP room.

mortgage is under both names, is it possible rental property income, can it be under my name only

Hi Juanita, If you and your spouse are both on the title to the property and both of you contributed equal amounts to purchase the property, then both spouses must report 1/2 of the income and expenses of the property.

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