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Answer

Can my corporation claim a deduction for rent expense payable to me?

Yes, the corporation can deduct rent expense payable to the shareholder. There should be an agreement between the shareholder and the corporation specifying how the rent is calculated and the payment terms. It is possible that the CRA could challenge the expense claim for unpaid rent under Section 67 of the Income Tax Act, which … Continue reading Can my corporation claim a deduction for rent expense payable to me?

Re: Non-Resident Status

Generally, a lease to a third party would have to be on arm’s length terms and conditions for a dwelling place located in Canada not to be considered a significant residential tie with Canada, as discussed in ¶1.12. However, in certain situations, particularly where the non-resident individual acquiring the dwelling place has never previously been … Continue reading Re: Non-Resident Status

What is the filing date for a corporate return?

The Canada Revenue Agency says you must file your corporate income tax return within 6 months of the end of your tax year. Your corporation’s tax year is your fiscal period, which is your business year. It is unique for each corporation and does not follow the traditional January-December calendar year. However, from what you’ve … Continue reading What is the filing date for a corporate return?

Re: Bitcoins – deductions for meals

I think the advent of digital currency itself is a very interesting phenomenon. It’s volatility puts a lot of people off but banks and credit card companies are beginning to take notice since it may potentially threaten the usage of credit cards. Merchants who use credit cards have to pay a 3% fee per transaction, … Continue reading Re: Bitcoins – deductions for meals

Re: RRSP for purchasing a house

The home buyers’ plan lets you withdraw $25,000 from your RRSP tax free and $50,000 if you have a spouse. The withdrawals will have to be paid back over the next 15 years. Also you must at least deposit 1/15 of the amount withdrawn from your RRSP annually in order to avoid paying taxes.

Re: Deferring Departure tax

I know that you can defer it by providing the CRA with security/collateral that is equal to the value of the expected deemed disposition.

How does the children’s arts credit work?

Under CRA (Canada Revenue Agency) guidelines, in order to be considered for the Children’s Arts credit your program needs to be supervised, be suitable for children and must meet at least ONE of the following criteria: helps children expand their creative skills through artistic or cultural activities (i.e. creative writing, visual arts, music, learning a … Continue reading How does the children’s arts credit work?

Re: Paying taxes on inheritance?

No, you do not have to pay taxes on the portion of the inheritance that you receive. When a person passes away, their estate handles all the legalities regarding their possessions, including taxes. So by the time you (the beneficiary) receive your inheritance, all taxes on the estate and its possessions should already be paid.

Which parent should claim tax credits?

The children’s fitness and arts tax credit is a non-refundable 15% credit on an amount up to $500 offered to parents by the Canada Revenue Agency to help them enroll their children in physical or mental activity programs. Since the credit is non-refundable, it is not a deduction and can only reduce the amount of … Continue reading Which parent should claim tax credits?

Do I still pay taxes on the children’s arts credit?

When it comes to what’s going to be taxed or not, the rulings for GST/HST tax is based on what primary service the program is providing. If the service provider is a “for profit organization” and its primary service is NOT child care, then the service would be deemed taxable. If the service provider is … Continue reading Do I still pay taxes on the children’s arts credit?

Re: TFSA Contribution Room

The TFSA contribution room carries over from each year since its inception in 2009. As long as were at least 18 years old in 2009, your total contribution room is now $31,000 for 2014.

Re: Are sporting events tax deductible?

I’d also like to know if this applies for sporting events overseas? or is it just restricted to local and national events?

Re: Are sporting events tax deductible?

Yes they can be claimed in the meals and entertainment deduction on your T2125 form. They are 50% deductible similar to meals.

Re: What moving expenses are deductible?

Hi Jeneffer I believe the CRA allows you to deduct a few expenses such as your meals for travel purposes along with gas and travel expenses. For a more details speak with an accountant.

Re: First-Time Donor’s Super Credit

Yes you can as long as you or your spouse have not claimed a donation since 2007.

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