Archives: Answers

Answer

Refundable Dividend Tax on Hand (RDTOH)

The ‘refund’ is in the form of a refundable credit on Schedule 200 of the T2 corporate tax return. Therefore, the credit will increase the company’s corporate tax refund or reduce its corporate tax liability. A cheque is not mailed out for RDTOH.

If a person has say for example 10,000 dollars in a foreign bank account and a personal use foreign property above 100k CAD , does he/she need to file T1135 form?

In your example, you do not have to complete forum T1135 because the cost of the total specified property during the year did not exceed $100,000. Also, thank you for the positive feedback; I appreciate it.

HST Payment correction

You will have to amend the prior years HST returns to correct the errors.

As a small business owner, should I take Salary or Dividends?

In deciding whether a dividend or a salary is better, you should assess the benefits of each compensation method: Benefits of dividends: * You do not have to contribute to CPP or EI. This saves you money immediately. * You do not have to deal with the compliance associated with payroll taxes, which can be … Continue reading As a small business owner, should I take Salary or Dividends?

What if franchisor is not registered for HST, are royaties payments to franchisor subject to HST?

Yes, royalties are subject to GST/HST.

Filing taxes as Dual Citizen with a rental property & living in Australia permanently

Firstly, you should file a departure tax return with the CRA to establish that you became a non-resident of Canada upon leaving to AU. Secondly, you are supposed to remit a monthly tax equal to 25% of the gross monthly rents collected to the CRA. You can recover all or part of this tax by … Continue reading Filing taxes as Dual Citizen with a rental property & living in Australia permanently

In MY INCOME TAX PREPARATION WITH TRADING IN A TAX FREE SAVINGS TRADING ACCOUNT, WHEN i GO TO DO MY TAXES THEN ALL THE TRADES THERE CAN BE BASICALLY INGORED AND AS ANY CAPITAL GAINS ARE NOT IMPORTANT TO FILLING OUT THE FORM?

You do not have to report trades / sales made within a TFSA on your personal tax return. This is because any gains made within a TFSA are not taxable.

I am an Financial Advisor for an insurance company (T4A, self-employed commission). I bought a book of business from a retiring colleague. I had to get a personal loan to do that. Is the interest I pay on that loan tax deductible, and if yes, should I deduct it on Schedule 4 or T2125? Thank you.

Yes, the interest is tax deductible. Please report the interest expense on form T2125.

Is the $30,000 threshold for HST calculated on the gross trip fare or after Uber has taken their safe rider fee and 25% commission?

HST is calculated on the gross trip fare.

Moving south While keeping Ontario Incorporation.

There are two major tax implications. First, the tax status of your corporation will change from a Canadian Controlled Private Corporation to an Other Private Corporation. As a result, the tax rate will increase from 15% to 26%. Second, you could be liable for departure tax when leaving Canada to the US. When you leave, … Continue reading Moving south While keeping Ontario Incorporation.

Cross Border Tax issue when renting primary residence in canada.

I’m not sure where the NRC is located. So I will answer your question based on the assumption that the location is in Canada. As a non-resident of Canada, if you rent out a rental property in Canada, you must remit a withholding tax equal to 25% of the gross monthly rents collected to the … Continue reading Cross Border Tax issue when renting primary residence in canada.

Can we write off capital loss against regular self employed income?

No you cannot.

Can we claim Private Health Insurance on our income tax form for 2016?

Yes, you can claim the premiums paid for private health insurance for the medical expense tax credit.

how much is total rate tax ( federal and ont tax) for small business in toronto and is there any exception?

The combined corporate tax rate for small businesses in Ontario that earn active business income is 15% up to $500,000 of taxable income. Thereafter, the tax rate increases to 26%.

If I have $10,000 in a foreign bank account and a personal use foreign property Over 100k CAD, do I need to file Form T1135?

No, you do not need to file form T1135 in your example.

Pin It on Pinterest