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Answer

What are the rules around carrying forward unused cCA?

Hi Janet, thanks for your question. CCA is a discretionary deduction. You can choose to claim it in one year, and not the next – it’s totally up to you. When you claim CCA in a year, the UCC (undepreciated capital cost) is reduced by the amount of the CCA claimed in that year. If … Continue reading What are the rules around carrying forward unused cCA?

What Rate To Charge World-Wide Customers Via Online Sales?

Hi Edward, if you are selling to customers located outside of Canada, then do not charge them GST/HST. If you are selling to customers within Canada, then you must charge them GST/HST.

Can a non-capital loss for a certain year be carried forward?

In your example, you can apply the 2010 loss of $10,000 to the net income earned in the 2012 tax year. The non-capital loss can be carried-forward for up to 20 tax years.

First Year of Being Incorporated

These expenses should be recorded by your corporation. I suggest that you purchase a tax return preparation software from TurboTax or Ufile if your returns is simple to complete. Otherwise, hire a tax professional.

Canadian tax on consultancy contract with foreign Company

Thank you for your question. Since the work was performed from your home in Canada, it is treated as “Canadian sourced income” and is taxable in Canada only.

Non-Resident US Return

If you maintain your home in Canada and travel back and forth the US for work, then you will likely remain a resident of Canada and a non-resident of the US pursuant to the Canada-US tax treaty. That means you will have to pay income tax in the US on your US earnings. As a … Continue reading Non-Resident US Return

If I wish to sell an Indian property and repatriate the funds back in Canada, what is the procedure?

If the sales proceeds are more than $100,000 CAD, and are kept in an Indian account, then you must complete form T1135. In addition, you must report and pay Canadian tax on the capital gain from the sale of the Indian property. You can claim a foreign tax credit on your Canadian tax return for … Continue reading If I wish to sell an Indian property and repatriate the funds back in Canada, what is the procedure?

How to show foreign income before becoming resident of canada

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Non-Resident Selling Land

Thanks for your questions. Your sister has to apply for an application for a Certificate of Compliance with the CRA within 10 days of the closing date. With this certificate, she will attach a payment made payable to the Receiver General of Canada for 25% of the gain realized on the sale. Once the buyer’s … Continue reading Non-Resident Selling Land

Do I need to file a Canadian return?

If you already claimed a foreign tax credit on your US return for the taxes withheld, there’s no sense in filing a Canadian return. The taxes deducted at source represents your final obligation to Canada. Under regulation 105 of the Canadian income tax act, a tax of 15% is deducted by the payer from payments … Continue reading Do I need to file a Canadian return?

Moving south While keeping Ontario Incorporation.

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is possible to pay CPP every month during the year as a self-employed individual?

You can make tax installments during the year to the CRA. This will be applied towards income taxes + CPP premiums payable on self employment earnings.

income employee tax breaks for 6 figures

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Business Tax On Earning US Dollars While Living In Canada

Yes, it will be considered to be a CCPC carrying on an active business in Canada and not a personal services business.

What is the difference between total expense and personal portion?

The total expense includes the personal portion and the rental portion.

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