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Re: GIFI Code for Balance Sheet

Hi Marshall, The tax payment made for the additional taxes owing as per the Notice of Assessment should be recorded to GIFI code 9990, current income taxes. Do not adjust the prior year’s retained earning if the payment was made subsequent to the year-end. Allan Madan, CPA, CA

Re: Taking dividends from your corporation

Hi William, Yes, you can take dividends in your first year of incorporation, so long as there is sufficient retained earnings.

Re: Transferring very small sole proprietorship to Corporation

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Re: How to record Management Fees and Directors Fees from a Corporation

Hi, Me and my wife are 50% share holder of our corporation and directors .We have declared management fees on t2 tax returns.how to report that on our personal tax? Thank you,

Re: The Scientific Research and Experimental Development Tax Incentive

Hello Kareem, You are exactly right! It is an incentive program that encourages research development. The benefits are quite advantageous. 1) This program allows you to deduct Scientific Research and Experimental Development from your income for tax purposes 2)The program provides you with an SR&ED investment tax credit (ITC). You can use to reduce your … Continue reading Re: The Scientific Research and Experimental Development Tax Incentive

Re: Income from Affiliate Business with US Sales

Hello Priya, I have many clients with the same type of business model as you have. You do not have to pay US income taxes so long as you do not have a physical presence in the US. However, you may be asked to provide an EIN (US Tax ID Number) to the US companies … Continue reading Re: Income from Affiliate Business with US Sales

Re: How to record Management Fees and Directors Fees from a Corporation

Hello Harman, Income from management fees should be recorded on form T2125. Management fee income is taxed on an accrual basis as opposed to a cash basis. As such, even if the management fees were not paid to you by your corporation, they must still be included in your personal taxable income so long as … Continue reading Re: How to record Management Fees and Directors Fees from a Corporation

Re: Double Taxation

Hello Uman, You should bill / invoice customers through a Canadian corporation. Based on what you’ve told me, your Canadian corporation will not have a permanent establishment in Canada. However, we will need to apply for an EIN (US Tax ID Number) for your Canadian Corporation, which Amazon / Ebay and other e-commerce sites will … Continue reading Re: Double Taxation

Re: Moving RSP’s

Hello Frankeln, There’s a 15% withholding tax payable to the Canada Revenue Agency on RRSP withdrawals made by Americans. The amount withdrawn will be included in your American tax return (1040) and will be subject to regular tax rates. You can claim a foreign tax credit on your American return for the Canadian withholding tax … Continue reading Re: Moving RSP’s

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 disclosing reportable transactions

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: New Home

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: Deadline for Self-Employed Individuals

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 Re: US and Canadian Tax Filing

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