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Answer

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.

Shouldn’t I be saving more on my taxes?

No Antonio you didn’t, but this is a common issue that a lot of people (even some professionals) tend to be confused about. A tax credit is NOT a tax deduction, and vice versa; they are different and benefit you in different ways. Tax deductions are subtracted from your total income as a way to … Continue reading Shouldn’t I be saving more on my taxes?

I haven’t been in Canada for several years and need to update my tax records, what should I do?

Hello, For 2009, you can get a copy of your T4 slips by calling the CRA. For the years you were in England, your tax responsibilities depend on your residency status. Because you became a non-resident of Canada when you left for England, you are only taxable in Canada on your worldwide income up to … Continue reading I haven’t been in Canada for several years and need to update my tax records, what should I do?

Evaluated by the CRA?

Hello. The first step is to file a formal notice of objection. You must do this within 90 days from the date of mailing of the notice of reassessment or one year from the due date of the return (whichever one is later). A CRA appeals officer will then review your objection. If you decide … Continue reading Evaluated by the CRA?

Can I still file my income tax return even though I haven’t received my T4 slip from my workplace?

Hello Harpreet, It should be noted the T4 is your employer’s responsibility and not yours. However, if a company shuts down they may or may not honour that responsibility. As you wait for your T4, the CRA (Canada Revenue Agency) allows you to use the last paystub of the year as a temporary receipt, so … Continue reading Can I still file my income tax return even though I haven’t received my T4 slip from my workplace?

Client wants to take part in Offshore Voluntary Disclosure Program

From what you’ve mentioned in your question it would seem you may be in a rush with getting this client’s file together. If that is the case, it should be noted that it is integral to be concise when filing for the Offshore Voluntary Disclosure Program (OVDP). Missing even the most minor of steps could … Continue reading Client wants to take part in Offshore Voluntary Disclosure Program

I have a rental property, should I claim depreciation? What are the pros and cons?

The advantage of claiming CCA (i.e. tax depreciation) is that you will receive a tax deduction immediately, thereby reducing your taxes payable. The disadvantage is that when you sell the property, any CCA previously claimed must be included in your income in the year of sale – this is know as ‘recapture’. Even though the … Continue reading I have a rental property, should I claim depreciation? What are the pros and cons?

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