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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.

Re: Canadian Inheritance Tax?

Hi, there are no taxes charged on either Canadian or foreign inheritance. Any applicable tax would have to be paid by you. The only time your daughter would have to pay for tax would be if the money gains any interest AFTER she receives it.

Re: Deductions for training

Hi Linda, unfortunately you will not be allowed to deduct these costs. In your situation, your training would fall under capital expenses. This means your training results in a lasting benefit to you

Re: Stuck with two houses, should I cash in RRSP?

Hello Victor, if you cash out your RRSP now you will not have enough contribution room to reinvest the 95K. You will also have to pay a lot of tax if you withdraw from the RRSP. I would suggest going to your mortgage lender to see how much you need to cover the costs and … Continue reading Re: Stuck with two houses, should I cash in RRSP?

Re: Do I charge my customers HST on material?

As an electrical contractor, you must charge your customer HST on both materials and labour. If the customer is in Ontario, you charge HST of 13 per cent. If the customer is in another province, you change the HST rate of that province. Or you charge the GST rate of 5 per cent if the … Continue reading Re: Do I charge my customers HST on material?

Re: Can we borrow or use some of our daughter’s RESP for travel academy?

Hey Harold! Unfortunately, your daughter has to be enrolled in a post-secondary program to qualify to use the RESP. It does sound like a great opportunity for her though, with learning far beyond the “schooling” itself. You can take the principal out of the RESP at any time without tax consequences, but be careful. If … Continue reading Re: Can we borrow or use some of our daughter’s RESP for travel academy?

Re: Handling my late husband’s TFSA

Hi, the earnings that are gained in the account after the account holder’s death will be taxable. The earnings that accrued before the death would remain tax exempt. However, if your husband named you as a successor to the account, you will be able to maintain the tax-free status of the earnings in the account. … Continue reading Re: Handling my late husband’s TFSA

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