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Answer

Do I pay taxes for the year that I lived outside of Canada?

Hi Paul, Your return to Canada should not impact your non residency status while you lived in the UAE. When you permanently come back to Canada, you will become a tax resident again and will have to file a part-year tax return for that year.

How do I optimize my situation, with regards to tax?

Thanks, Celine!

How do I optimize my situation, with regards to tax?

Hello, First, remember that in order to plan, you have to make decisions and hypotheses about the future. For example, you are going to make assumptions about income tax rates and decisions about your plans. Ideally, you would max out both TFSA and RRSP. However, this can be hard to do. If you think you … Continue reading How do I optimize my situation, with regards to tax?

Paying Taxes to the IRS

Hello Manesh, As a US citizen, you have to file a US tax return annually and pay taxes to the IRS on your worldwide income. Having said that, you should not have paid yourself a dividend from your Canadian corporation, as this will result in double-tax because of your US citizenship. The US tax system, … Continue reading Paying Taxes to the IRS

Taxing Accomodations

Hello Jessie, Your company can deduct the costs of your hotel / accommodation. However, you do have to include the amount of the reimbursement received in the corporation’s income. You should also consider having your corporation pay you a tax free vehicle allowance of 55 cents per KM for the first 5,000 Kilometers driven and … Continue reading Taxing Accomodations

Avoiding tax problems

Hello Sarah, Sounds like you are operating as a sole proprietor (not incorporated). In this case, your US earnings must be reported in Canadian dollars on your T1 Canadian Tax Return. You will also need to complete and attach form T2125, Statement of Business Activities, with your T1 Tax Return. Hope this helps! Thank you, … Continue reading Avoiding tax problems

Are there tax deferral strategies for capital gains?

Hi Chandler, Buying another property after you sell your current investment property will not enable you to defer paying capital gains taxes on the sale.

Leaving Canada and living in Kuwait, how will it affect my taxes?

The section that is relevant to your situation is Article 4. To be a resident of Kuwait, you have to be a Kuwaiti national. As you do not meet this criteria, you will need to formally declare yourself a resident of Canada. This is because you need to have residency in at least one country. … Continue reading Leaving Canada and living in Kuwait, how will it affect my taxes?

Union dues are being reviewed by the CRA?

Hello, If these dues are annual, the CRA probably noticed the discrepancy. Chances are, you’ll have to pay the difference and a penalty (interest). I would, however be more careful for a few years as you may be re-assessed in the future. If you display a cooperative attitude and admit your mistakes, they are usually … Continue reading Union dues are being reviewed by the CRA?

As a non resident, can I hold non registered GICs in Canada?

Hi Ahmed, For Canadian tax purposes, you can own Canadian GICs as a non resident of Canada. Withholding taxes of 25% will be deducted from interest payments made to you.

Forgot to charge my customers HST…

You will need to re-do your books for the period during which the returns were due, recalculating your invoices to include HST. You will also be able to claim input tax credits for supplies you bought to run your business, this will reduce your overall HST owing. Once you have recreated your books correctly, you … Continue reading Forgot to charge my customers HST…

can I claim a loss on rental expenses and depreciation on my rental property?

Hi Seb, thanks for you questions, I recommend that you DO NOT claim capital cost allowance (CCA) on a rental property that you plan on converting into a primary residence in the future. This is because when you move into the property, there will be a deemed disposition of the property, which will result in … Continue reading can I claim a loss on rental expenses and depreciation on my rental property?

How long does the CRA have to audit my taxes?

The Canada Revenue Agency (CRA) typically proceeds with the auditing process of a tax return 4 years after your assessment for that tax year. For example, if you receive an assessment for this year’s (2014) tax return in August, the CRA will have until August 2018 to review your 2013 tax return. However, the CRA … Continue reading How long does the CRA have to audit my taxes?

How can I credit the tax I have paid in Indonesia with the one in Canada. I have resident ties

Hi Kiran, Claim a foreign tax credit on your Canadian tax return by completing form T2209 http://www.cra-arc.gc.ca/E/pbg/tf/t2209/t2209-15e.pdf

Where to put non-property specific rental expenses.

Sorry I meant to say I had that information entered in a T776 (which is a property specific income and expenses sheet but I had forgotten to write it.

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