Answers Archive

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

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.

PR in both US and Canada in 2015

If you have permanently moved to the US from Canada, then you should file a departure ta return with the CRA for the year that you left Canada. You will also file a tax return with the IRS, with your US residency starting on the date that you received your US PR Card.

Can I use my son’s disability tax credit?

Yes, a child can transfer a disability tax credit to his/her parent if he/she cannot use it to reduce taxes payable.

When adding expenses up, do I includethe tax amount paid?

If you are not claiming a rebate (input tax credit) for the taxes paid, then you are supposed to deduct the taxes paid as an expense.

charitable donations

A charitable donation to a foreign charity can be claimed as a tax credit on your Canadian tax return so long as it is a listed charity. See http://www.cra-arc.gc.ca/chrts-gvng/qlfd-dns/qd-lstngs/gftsfrmhrmjsty-lst-eng.html for a listing. On our US return, you can claim a deduction for a donation to a Canadian charity so long as you are also reporting … Continue reading

TFSA stock brokerage account

Yes, you should put the shares in a TFSA to the extent you have room in the TFSA.

Question re: moving expenses, and legal fees deduction

Legal fees and other charges incurred with equalizing assets upon separation are non-deductible.

Reporting Non-US income on US tax returns

You are a US tax resident for part of the year (January to October) because you met the substantial presence test and because you permanently left the US to another country (Canada). Therefore, you will be liable for US income taxes on your worldwide income for the period January to October. You will have to … Continue reading

urgent please

Do not file a Canadian tax return if you were in Canada temporarily and did not earn any income from Canadian sources.

Can I Claim or adjust my tax return for Medical expenses 5 years ago?

Yes, you can adjust your tax return up to 10 tax years ago.

Do I need a Canadian employment agency ..

The US employment agency can pay your Canadian corporation directly. Remember that you must be an ‘independent contractor’ for this arrangement to work.

HST REBATE

Yes, you can claim an input tax credit for the GST/HST paid the purchase of a vehicle that is used for business purposes. The maximum cost amount for a vehicle on which you can claim an ITC is $30,000.

US Resident Buying Investment Property In Canada

The easiest way is for you to purchase the property in your individual name. You will file a Section 216 Non Resident Rental Return each year with the CRA and pay Canadian income tax on your rental profits. The monthly withholding tax of 25% that you have to remit is credited to you when you … Continue reading

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