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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?

Offshore Voluntary Disclosure Program?

The Offshore Voluntary Disclosure Program (OVDP) is a program set up by the IRS to allow anyone living in another country, who owes the United States taxes, the opportunity to get caught up and rectify any outstanding tax related issues. It originally was used to force individuals who used offshore accounts for tax avoidance or … Continue reading Offshore Voluntary Disclosure Program?

Credit vs. debit on vehicle fuel

Simply put, the reason you’d want to pay for your gas/car fuel with credit rather than cash or debit is so the Canada Revenue Agency has a better record of your transactions. The CRA might ask you for more information or clarification about your transactions if you pay for gas with cash or debit, even … Continue reading Credit vs. debit on vehicle fuel

Washer and dryer for rental property?

As long as the washer and dryer are strictly for the rental property, then you can claim them as a capital cost allowance deduction, otherwise known as depreciation. The CRA allows you to claim up to 20% of items under class 8 on your return, since those items’ capital cost will lose value as the … Continue reading Washer and dryer for rental property?

Can you claim income tax preparation software?

If you have purchased the software for personal use, then the Canada Revenue Agency would regard that as a personal expense. In that case you would not be able to claim the cost of any tax preparation software on your tax return. If you are self employed, you can deduct tax return preparation fees from … Continue reading Can you claim income tax preparation software?

What is the Ontario Opportunity Fund?

The Ontario Opportunities Fund is a fund set up by the government of Ontario to allow residents to help reduce the province’s deficit. Taxpayers can do this by making monetary donations to the Crown, which the government will consider a gift. You will not be able to receive any deductions for contributions made to this … Continue reading What is the Ontario Opportunity Fund?

Can I claim tuition that my employer partially paid for?

You will be able to claim the half of the tuition you paid for as a credit. The Canada Revenue Agency says that in order to claim tuition fees as a tax credit, the fees must not be paid for or reimbursed by your employer. However, since your employer only paid for half of your … Continue reading Can I claim tuition that my employer partially paid for?

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