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How to pay your corporations income tax?

Usually, corporations will have to pay the Canada Revenue Agency (CRA) taxes in instalments, through either monthly instalments or quarterly instalments. However, you don’t have to pay in instalments if: Your corporation’s tax payable is $3,000 or less Your corporation is new (you will need to start making instalment payments once your second year of … Continue reading How to pay your corporations income tax?

Re: Unemployed, capital gains?

Hello. If the gains are realized, there is little you can do except offset them with losses. If they are unrealized, you can spread them out over this year and next. The trick is to shelter the funds before you incur gains. As for registering as an investment company it depends. If your investments are … Continue reading Re: Unemployed, capital gains?

I need to file outstanding U.S. taxes but don’t have any options left

If you file delinquent personal tax returns without first notifying the IRS, that would be considered a quiet disclosure. That is acceptable, however it runs a major risk. There is the slim possibility that the IRS will process the return as normal, but you would still leave the possibility open to be subjected to an … Continue reading I need to file outstanding U.S. taxes but don’t have any options left

Re: Health and dental credit?

Hello, You should be able to claim that amount for the medical expense tax credit, as long as your company allows for it. Some companies do not allow you to claim the employee share of the health premiums. In this case, there should be accompanying information on your T4 that tells you if you are … Continue reading Re: Health and dental credit?

Do I have to file a tax return even if I have no income this year?

If you have no income to claim for the tax year, then you are not required to file a personal tax return with the Canada Revenue Agency. However, you need to ensure that you have absolutely no income whatsoever to claim; employment income is not the only form of income according to the CRA. If … Continue reading Do I have to file a tax return even if I have no income this year?

How long does it take to receive my refund?

It solely depends on what method you used to file your tax return. Typically, the Canada Revenue Agency will take 4 to 6 weeks to process paper returns. They will not start processing the returns until the middle of February, so you shouldn’t expect the refund before the middle of March (even if you filed … Continue reading How long does it take to receive my refund?

Where do I record foreign income earned?

All Canadian taxpayers must claim all income on their personal tax returns, including any international income. The business you have a partnership with is located in England and therefore is already being taxed by the English government. By having to claim that income on your Canadian return, it would still be taxable income to the … Continue reading Where do I record foreign income earned?

Re: Can my RRSP contribution in the first 60 days of 2014 be used for deductions of that year?

Hello, Contributions can be deducted on your 2013 and later returns. You can split them any way that you like. You can also defer deductions to later years. This might be advantageous if you have higher income in future years and you have already maxed out your TFSA. On Schedule 7, line 3 records contributions … Continue reading Re: Can my RRSP contribution in the first 60 days of 2014 be used for deductions of that year?

What happens if my business property suffers a capital loss?

You can claim the capital loss on your property against your income this year, but it won’t do you any good if you have no income. Since claiming capital losses on your tax return is a deduction, it won’t make your taxable income below zero. Since you have no income to report this year, it … Continue reading What happens if my business property suffers a capital loss?

Re: Is home insurance claimable?

Hello. Home insurance is claimable as a business expense if you work from home. However, mortgage insurance (which pays the balance of the mortgage should you die), has no relationship to the business. You should maintain a clear distinction between ownership and personal use costs. This is because you don’t want your personally-owned asset (that … Continue reading Re: Is home insurance claimable?

Could the new streamlined procedure benefit me?

The New Streamlined Filing Compliance Procedure is a program implemented by the IRS to help U.S. citizens living outside of the U.S. who have outstanding or delinquent tax returns get caught up with filing their returns. The program allows the taxpayers to do so without any thorough examinations, investigations of penalties or follow up actions … Continue reading Could the new streamlined procedure benefit me?

Re: How do I track the adjusted cost balance?

Hello. Your ACB is the weighted average of XIC shares in your personal account, and your shares of XIC shares in the joint account. I would first determine who contributed the funds to the joint account, because this determines ownership. Just because you opened the account with your husband does not automatically mean that he … Continue reading Re: How do I track the adjusted cost balance?

What is a Primary Residence Exemption and how does it work?

Every taxpayer in Canada has a principal residence exemption available to them on their “primary residence”. When you sell your home, it is this provision that prevents you from having to report any earned profit on it. To be considered as your primary residence, however, your home needs to have been yours for every year … Continue reading What is a Primary Residence Exemption and how does it work?

Offshore Voluntary Disclosure Program?

The penalties you will face is dependent on your financial status with the IRS. By taking part in the OVDP, you automatically will be assessed an offshore penalty in place of any other penalties you would otherwise face if you did not take part in the OVDP. This itself is complicated, but the standard penalty … Continue reading Offshore Voluntary Disclosure Program?

Offshore Voluntary Disclosure Program?

The program sounds like it would benefit me greatly, but I was wondering how much my penalties would be. Is there any way to actually calculate the costs?

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