Archives: Answers

Answer

Can my corporation deduct property taxes for my house?

Hello Daniel! You can charge-back 10% of your property taxes to your corporation, since your home office is 10% of the total area of your home. Record a journal entry that debits Home Office Expenses and credits Due To Shareholder. Thanks and hope this helped, Allan

Reducing Work Hours With the Least Amount of Impact on Pay

Hi Melissa, in Canada, we have a graduated tax rate system, which means the more you make, the higher tax you pay. However, you will never be worse-off if your wage / salary for the year increases, because the highest marginal tax rate does not exceed 49%. For you to be out-of-the-money because of a … Continue reading Reducing Work Hours With the Least Amount of Impact on Pay

Applying for losses from prior year on T1

Hello Priti, Thanks for your questions. You can apply non-capital losses from prior year(s) to any source of income in the current year. This will reduce the current year’s taxable income. You do not have to wait until you receive the notice of assessment for the current year. To apply a non-capital loss from a … Continue reading Applying for losses from prior year on T1

Concerned about becoming a victim of real estate fraud

You have good reason to be concerned about fraud, it’s a serious issue especially when it comes to protecting your businesses regardless of whether it’s in real estate or not. You’re also right, the more you expand a business the more you have to manage which can become overwhelming at times. The best advice I … Continue reading Concerned about becoming a victim of real estate fraud

Can I claim medical expenses if Self-employed as a business expense instead of personal deduction?

You cannot claim medical expenses (such as dental) and fitness expenses as tax deductible business expenses. You can claim personal tax credits for these amounts on your personal tax return.

Deducting real estate agent commission when filing taxes

Hi Andrew, Thank you, If the home in Canada was your primary residence prior to selling it, then you cannot deduct commission fees paid in respect of the sale.

Paying E.I on Salary owned by Shareholder

Hi Joseph, EI premiums are not payable on salary earned by a sole shareholder of his company. So it doesn’t make a difference if you pay yourself a director’s fee or a salary.

How to Enter Prior Year GIFI on T2 Return

Hello David, Unless this is your first corporate tax filing, you must enter the prior year’s financial information on GIFI schedules 100 and 125. All CRA approved T2 Preparation Software should have this feature. Thanks, Allan Madan

Sending US residents to work at a US employer based in Canada- do we only withhold Canadian taxes for those who are in Canada?

Hi Emily, No, that is not correct. Canadian payroll taxes must be deducted, unless you obtain a waiver from the Canada Revenue Agency (for employees less than $10,000). We can help you with this. Also, your US employees must file a nonresident personal tax return with the CRA.

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

Pin It on Pinterest