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Re: Does Canada offer a child tax credit?

Hello Andreas, yes, Canada does offer a tax credit for each child under the age of 18. The tax credit amount is at least $2,000 and you do not need a receipt to claim the credits! The credit amount changes each year, but assuming a credit of $2,000 the actual federal tax saving is $300 … Continue reading Re: Does Canada offer a child tax credit?

Re: Selling US property while in Canada

Hello Marsha, since you sold your property while in Canada, you are required to report the sale on your Canadian tax return. If you sell the property for more than its tax cost, you’ll have to report a capital gain in Canada. In addition, because your property was physically in the US, the US will … Continue reading Re: Selling US property while in Canada

Re: Being audited with lost receipts

Hi Jacob, you may be in luck! This happens all the time so the CRA will give you the benefit of the doubt if you can show reasonable support for the income, deductions, and credits reported on your return. The easiest way to reconstruct missing tax records is to ask for new ones. For example, … Continue reading Re: Being audited with lost receipts

Re: Recieving rental income from the US as a Canadian

Hello Laura, due to the non-resident tax system, your worldwide income will not be taxed in the US if you have US rental income. For example, if you have employment earnings in Canada of $30,000 and you are a non-resident of the US, then the US will not have the right to tax your Canadian … Continue reading Re: Recieving rental income from the US as a Canadian

Re: Adding another child to an RESP

Hello Kelly, you may add your new child to the existing RESP only if you meet the following requirement: the child must be under 21 at the time you add him or her to the plan. If he or she is over 21 at the time you want to add him to the RESP, he … Continue reading Re: Adding another child to an RESP

Re: Public transportation deductions

Hello April, yes you are allowed to claim public transportation credits by filing out line 364 of schedule 1 on your tax return. However, you will need to follow some requirements before you can claim the credits. The first is that you need to buy a monthly or yearly metro pass. Buying one way or … Continue reading Re: Public transportation deductions

Re: Self-employment home deductions

Hi Gordon, first off, you are allowed to write off a percentage of your cell phone bills as a business expense. Just be prepared to prove to the CRA that you did in fact use those minutes for your business. Secondly, the amount of utilities you can write off depends on the percentage of the … Continue reading Re: Self-employment home deductions

Tax and declaration on foreign income

Hi Tom, so sorry, that last response was for another question. Here is the answer to your question: If you are the beneficial owner of the rents collected, and the property, then the income and expenses from the property should be reported on your tax return in Canada. The term beneficial owner means that the … Continue reading Tax and declaration on foreign income

Re: Tax and declaration on foreign income

Hi Allan, I have a foreign property, but the rental contract is in my mother’s name ( which keeps all the money ). Is this considered my income and I need to declare it here? Thanks in advance

Claiming daycare deductions under medical expenses

Hi, you may be able to claim a credit for either medical expenses or Attendant Care expenses. In the CRA’s guide RC4064 “Medical and Disability Related Information” it says under the section “Allowable Amount of Medical Expenses for Other Dependants”: “Claim on line 331 of schedule 1 of the Federal Tax Return, the part of … Continue reading Claiming daycare deductions under medical expenses

Re: Giving my spouse money for his TFSA

Hi Olivia, there is a clause in the TFSA rules which states that you may contribute to your spouse’s TFSA as long as he/she has room to invest. This rule is very significant because it allows the higher income spouse to contribute to the TFSA of the lower/no income spouse without facing any income attribution. … Continue reading Re: Giving my spouse money for his TFSA

Re: Tax and declaration on foreign income

You will get a foreign tax credit on your Canadian return for foreign taxes paid. You must be able to produce a copy of the foreign tax return to support the taxes paid.

Re: Tax and declaration on foreign income

Thanks Madan for your reply. What about taxes on foreign income for past 4 years that I did not file?

Re: Tax and declaration on foreign income

Hi Kaps, Thank you for your question. According to Canadian domestic law, you became a resident of Canada for tax purposes after being physically present in Canada for more than 183 days. You likely exceeded 183 days in Canada in your first year. Canadian tax residents are required to pay Canadian income taxes on their … Continue reading Re: Tax and declaration on foreign income

Re: Claiming Repair Costs on Tax Return

Hi, you can deduct the cost of materials used in the repairs. If you hired an outside source to help you out, you can deduct the cost of their labour. However, you cannot deduct the value of your own labour.

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