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Answer

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.

income employee tax breaks for 6 figures

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Mortgage Interest on a Home

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Mortgage Interest on a Home

No, interest paid on a mortgage for a primary residence is not added to the cost basis and it is not tax deductible.

RESP and RRSP contribution as a non-resident

Stop contributing to a RESP once you become a non-resident. You are not allowed to do so. Furthermore, you can contribute to your RRSP once you become a non-resident, but you won’t be able to deduct the contributions from your income, since you won’t have any income to report to the CRA. Yes, you can … Continue reading RESP and RRSP contribution as a non-resident

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.

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