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Prepare tax return on my own or hire someone?

The answer to this question varies greatly depending on your situation. From the information you’ve provided, you already seem to understand what it takes to file and complete your own personal tax return (as you’ve done it before), but if you don’t feel comfortable with doing the returns on your own, that’s where a tax … Continue reading Prepare tax return on my own or hire someone?

Added money to my RRSP and now I need to claim it on my taxes, but can’t find the contribution slip

Thanks for your question Harry. When you deposited money into your RRSP you should have received a receipt to reflect the transaction. You can use that receipt in place of the contribution slip, temporarily. However, you must send a letter along with that receipt explaining why you don’t have the contribution slip and what you … Continue reading Added money to my RRSP and now I need to claim it on my taxes, but can’t find the contribution slip

Do I need housing receipts?

Hello, Even if you are a former tenant, they are breaking the law if they refuse to issue a receipt. Remind the landlords that they are breaking the law. If they do not comply, report them to Investigation and Enforcement Unit of the Ministry of Housing. If you are in Ontario call them here 1-888-772-9277. … Continue reading Do I need housing receipts?

US Property Deed Transfer to US Permanent Resident Child

Yes, you will be liable for a capital gains tax on the transfer of the land to your child, in Canada. This is because the land will be considered to be sold for market value upon the transfer to your child. You may also have to pay a gift tax in the US on this … Continue reading US Property Deed Transfer to US Permanent Resident Child

Education or Work Expense Tax Credit

You cannot deduct the cost of the laptop and office equipment from your employment income. You may be able to claim a medical expense tax credit for certain equiment that you require for medical reasons. A doctor will need to certify in writing that you require this special equipment.

Tax-free allowances in overseas jobs

The housing allowance (free lease) is a tax free benefit for you since you are working at a ‘special work site’. A speical work site is a location where it’s too far for you to commute to each day, where the assignment is temporary (e.g. 2 years) and where you still maintain your current primary … Continue reading Tax-free allowances in overseas jobs

T1 Adj

You will need to adjust schedule 2 of your T1 return to reverse the tuition amount transferred to your spouse. Your spouse will also need to adjust schedule 1 of her tax return to reduce the amount of tuition transferred to her to $0.

Prior year adjustments

If you adjust the prior year’s financial statements, then you are supposed to file an amended tax return for that year, even if the impact is small. To avoid the hassle, consider posting the adjustment in the current period so that you don’t have to re-file last year’s taxes again.

First Time Home Buyer Looking To Rent Main Floor, what can I / can’t I write off?

You first need to determine the total size (square feet) of the home and then the size of the area that you are renting. For example, assume that the total size of the home is 3,000 square feet and you are renting out the main floor, which is 1,000 square feet large. Therefore, you can … Continue reading First Time Home Buyer Looking To Rent Main Floor, what can I / can’t I write off?

Money Saving Strategies for First Time Home Buyers and Owners

You first need to determine the total size (square feet) of the home and then the size of the area that you are renting. For example, assume that the total size of the home is 3,000 square feet and you are renting out the main floor, which is 1,000 square feet large. Therefore, you can … Continue reading Money Saving Strategies for First Time Home Buyers and Owners

Re: Can I work remotely while I am visiting the States -while I am Canadian with a Canadian Job?

Hi Mike, Do not stay in the US for 183 days or longer; otherwise you will become a resident of the US for tax purposes as per the ‘substantial presence test.’ If you are working in the US you are liable for US taxes. This means that you have to file a US return (1040NR) … Continue reading Re: Can I work remotely while I am visiting the States -while I am Canadian with a Canadian Job?

Re: Taxes on Crowdfunding if I am a Non-resident and the income is from U.S companies (using a Canadian bank)

Hi Pam, Great question. Generally speaking, business profits are attributable to the permanent establishment (i.e. fixed place of business) from which they are derived. If your PE is located in Japan, then the proceeds received from a kick-starter campaign should be sourced to and taxable in Japan pursuant to the Canada-Japan tax treaty.

Re: Are there any advantages of filing with my wife, and are there any income splitting options to help balance?

Hi Max, You can take advantage of the family tax cut, which allows you to split income with your wife, yielding a maximum tax savings of $2,000. If you wish to claim this and If your wife is preparing her return separately, a copy of her return will be required before she files, so that … Continue reading Re: Are there any advantages of filing with my wife, and are there any income splitting options to help balance?

Re: Can I write of car expenses in my personal tax as a carpenter? My incorporated company pays me my salary as dividends.

Car expenses are only deductible from salary and not dividends. Consider having your corporation pay a taxable car allowance to you, which will be reported on a T4 slip issued to you. Then deduct the work related portion of your car expenses on form T777, Statement of Employment Expenses. This form is part of your … Continue reading Re: Can I write of car expenses in my personal tax as a carpenter? My incorporated company pays me my salary as dividends.

Re: Does my Canadian company with real estate properties in the U.S- No physical presence in Canada, need an EIN number and file tax in the US?

Your Canadian corporation must file a US corporate tax return (1120-F) and pay US income taxes (federal + state) on the profits earned from its US properties. To reduce / prevent double taxation, your Canadian corporation can claim a foreign tax credit for the American corporate taxes paid. Your Canadian corporation must obtain an EIN, … Continue reading Re: Does my Canadian company with real estate properties in the U.S- No physical presence in Canada, need an EIN number and file tax in the US?

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