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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.

I have a LLC partnership in the U.S., when do I need a U.S. Tax I.D. Number?

Do not directly invest in a LLC, otherwise you will be double taxed. There are specific cross border structures that are better for Canadians that limit your liability and avoid double taxation. The only way you can get an ITIN, is by attaching form W7 to a US tax return (e.g. 1040-NR). A certified copy … Continue reading I have a LLC partnership in the U.S., when do I need a U.S. Tax I.D. Number?

Would It Be Better For Tax Purposes To Register Multiple Online Stores Under One Corporation Or As Individual Businesses?

If each web-store is a separate business then it’s better to put each web-store in a separate corporation. This minimizes your overall risk. Should one web-store fail, it will not affect the other stores. In addition, having separate corporations allows for greater flexibility in a potential future sale. For example, you can sell the shares … Continue reading Would It Be Better For Tax Purposes To Register Multiple Online Stores Under One Corporation Or As Individual Businesses?

Departure Tax and Selling Shares in Future

Once you pay departure tax, the adjusted cost base (ACB) of your stocks/shares increases to their fair market value as of the date departure tax is calculated. This revised ACB is used to determine the capital gain / loss when these stocks are later sold in the future. For example, assume that your purchased the … Continue reading Departure Tax and Selling Shares in Future

How can double taxation be avoided for corporations

You should form a US Limited Partnership in order to avoid double taxation and reduce risk. Click here to view our article.

Earning U.S. Dollars Living in Canada

Thanks for contacting me. I have many clients in the same situation as you. As a US citizen, you must pay US taxes on your worldwide income. To avoid / reduce double taxation, you can claim a foreign tax credit on your US tax return for part of the Canadian taxes paid. It may also … Continue reading Earning U.S. Dollars Living in Canada

Selling Multiple Products Through A Corporation

You can add as many products as you like to your #company and you only have to file a single corporate tax return. Yes, you have to sell the batteries to your corp if you own them personally.

What is required for cross border shipping within a business?

So long as your business does not have a physical presence in the US, it will not be liable for US income taxes. However, your business will need a US EIN to provide to your US customer (if they requested it). In addition, your US customer will likely ask for a completed form W8-BEN-E. If … Continue reading What is required for cross border shipping within a business?

How can I claim a Certificate of Proficiency for Vessel Personnel certificate training course that is required by transport canada to work on a ship paid out of pocket?

Fees paid to get a professional certification are non-deductible.

use HST quick method for one business and not the other?

Yes, one business can use the quick method of HST collection while the other business can use the traditional method of HST collection. However, each business must have a separate HST number.

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