Answers Archive

disclosing reportable transactions

Hello Guresh, Essentially there are two consequences to concealing reportable transactions: Penalties: If you do not want to file Form RC312 when needed, you and whomever has to file this form will be liable to pay a penalty – does not matter who is in charge of filling the form, as long as you are … Continue reading

Re: New Home

Hello Kenneth, You can consider making yourself an employee of your corporation – receiving monthly paycheques. Then you can borrow the money from your corporation to purchase the home. Your corporation will take back a mortgage against the property as security, and you must repay your corporation in monthly payments, using a reasonable interest rate … Continue reading

Re: Rental Income

Hello Brandon, Whenever you collect a fee for use of your property you have rental income. Essentially, any rental income received is taxable in both the US and Canada. Thanks, Allan

Principle Residence

Hello Kirk, A principal residence can be any of the following units a house a cottage a condominium an apartment in an apartment building an apartment in a duplex a trailer, mobile home, or houseboat Hope this helps, Allan

Re: Deadline for Self-Employed Individuals

Hello Gurpreet, The deadline for self-employed individuals to file their 2014 income tax return and benefit return is Monday. June 15th, 2015 (released June 8th, 2015) at midnight. If you had an outstanding balance for 2014, it would have had to be paid on or before April 30, 2015. Thank you and good luck with … Continue reading

Re: US and Canadian Tax Filing

Hello Franklyn, The business income earned in the US is taxable to you in Canada, as you remained a tax resident of Canada in 2014 (spouse in Canada, and house in Canada). I can file a T1 General Return for you along with a Statement of Business Activities. I will claim a foreign tax credit … Continue reading

Tax Deductions of Apartment and Vehicle

Hello Joey, You cannot deduct the rent or utilities in respect of your apartment. Vehicle expenses for travelling back home are also non deductible. However, this location (mine) may be considered a remote work site. Therefore, you should ask your employer to pay you tax-free benefits – rent for your temporary apartment near the mine, … Continue reading

Re: Small Business Tax Reduction

Hello Lionel, Congratulations on starting a new business! Our company actually has niche for small businesses and would love to help with your accounting and financial needs. The 2015 budget has changed the small business tax rate by decreasing the rate from 11% to 9%. However, this decrease will happen in yearly stages. The small … Continue reading

Re: Back Taxes

Hello Bryne, Thank you for your question. When you and your husband left Canada, did you indicate the date of departure on your final Canadian tax returns? First, call the CRA to determine how they have classified you and your husband on their system – as residents or non residents of Canada. If they have … Continue reading

Re: Non-Resident of Canada

Hi Dom Thanks for contacting me. Many of my clients or Canadian expats so I can certainly help you. Please let me know why you feel that your tax returns were filed incorrectly. Also, did you have any Canadian source income subsequent to your departure from Canada? Non residents of Canada only have to file … Continue reading

Re: Inheritance into GIC’s?

Um bad advice, I am getting 1.75% interest on my savings account at meridian credit union. Like 75% more then I get at RBC and more then a lot of gics. Secondly NEVER tell people to bank with TD canada trust or BMO, or CIBC are you out of your freaking mind. Learn about how … Continue reading

Re: What to do with Canadian investments while in USA

Hello, you are correct about keeping the TFSAs and ETFs while you are in America. My suggestion for you would be to liquidate all your assets right before you leave Canada. Once you get into the States, invest in items that can be repatriated back into Canada easily (for example cash or bonds). By holding … Continue reading

pdf to cor conversion

Unfortunately, there is not an ‘app’ that you can purchase to covert the file. You can purchase a single user license from either TurboTax, and submit the T2 Return online through their software.

Re: pdf to cor conversion

Ok thanks I guess that’s our option or submitting a paper copy

Re: T4

You should certainly submit a T1 Adjustment Form to include the income from the T4 on your personal tax return. So long as you did not receive a notice from the CRA in regards to the missing T4, you can submit the T1 Adjustment Form through the Voluntary Disclosure Program. Under this program, you will … Continue reading

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