Archives: Questions

Question

Reporting UCC

Hi Allan, I am not quite sure about how to balance the Capital Assets – $400 in the balance sheet. Is it correct to report the UCC – $500 under Shareholder’s Loan, if the answer was no, please advise. Your help is highly appreciated, Regards, Ali

Canadian Corporation with opportunity to work in US

I am an IT contractor, with a Canadian corporation with an opportunity to work in the U.S. on a Corp to Corp basis. I need to make sure I have the right paperwork and am setup correctly with the IRS. I want to avoid US Corp taxes by virtue of being treaty exempt and would … Continue reading Canadian Corporation with opportunity to work in US

Recording undercoated capital cost

Hi Allan, If the UCC of equipments in jan. 1, 2017= 500$, assume depreciation amount 100$ at the end of 2017. Could you advise where the 500$ and 100$ would be recorded in the General Ledger and the Balance Sheet please? Thanks for your time Regards, Ali

Property Flipping company Structure?

Hello Mr. Madan, We are a family based business planning to buy, renovate & flip the real estate houses. What should be the best optimize structure to set up the business? I was think to go with: Family Members- Trust- HoldCo- OptCo Can you please advise? Regards

cap gain on principal residence

Hi .. is cap gain exemption on principal residence valid for a new building too? Assuming someone owned the property for 10 years, lived in it for all that time, and then tear down to the old building to build a new house. how long (if at all) does someone need to live in new … Continue reading cap gain on principal residence

Beginning real estate investing in US and Canada

Beginning Real Estate Investing. As It Will Be In The US And Canada. Need To Set Up LLP And LLC. We are unsure if C Corp is needed. We were referred by Jenna. A similar situation to Megan who is seeing you. Thxs

Incorporating a start-up company

Hi Allan, We moved from India to NB, Canada 10 days back. I would really appreciate some advice. My husband has 2 IT products. One product is a pre-packaged software and other product is also a pre-packaged software but we do provide customization services for this product. Both products have combined profit of 60000 cad … Continue reading Incorporating a start-up company

Indian citizen with Canadian PR and taxes

Hello, Allan. We became permanent residents in Canada in January 2016. I, together with my children, decided to stay here while my husband decided to leave and stay and work in our country (India). We still have properties and a house in our country and my husband is a self employed in our country. What … Continue reading Indian citizen with Canadian PR and taxes

Large cash gift from overseas

Hi, I am a Canadian citizen living in Canada , my uncle is a chinese national living in Hong Kong and he is sending me a wire transfer of $800,000 as a gift to my canadian bank account. Will there be any issue with CRA Tax department , do I need to pay any taxes … Continue reading Large cash gift from overseas

Impact of converting USD to CAD

Hi Allan, I am a Canadian citizen residing in US and am a US resident (Canadian non-resident). I have USD account in TD where I have 15K USD. I would like to convert this amount into CAD and use it to pay off my mortgage loan. Could you please advise (1) Would you advise to … Continue reading Impact of converting USD to CAD

Capital Gains

Hi Allan, I bought a run down property late last year for $315 thousand with the intention of turning it into a rental home for long term retirement planning. I had incurred about $60 thousands in material/labour costs, and carrying charges. I had started the ‘for rent’ process holding open houses and showed the property … Continue reading Capital Gains

Best way to buy home from Relative for incorporated truck driver

Hello, I am an incorporated truck driver that doesn’t own a truck I just drive for a company. I pay myself a salary through my corporation. I am the only person under my corporation. Father in law offered to sell me an apartment for 100k that is valued at 200k currently. I live in this … Continue reading Best way to buy home from Relative for incorporated truck driver

electing to keep rental property as principal residence (subsection 45(2) of the Income Tax Act)

If someone rents out his principal residence, he can elect to keep it as his principal residence for up to four years under Subsection 45 (2) of the income tax act. According to the paragraph below “While your election is in effect, you can designate the property as your principal residence for up to four … Continue reading electing to keep rental property as principal residence (subsection 45(2) of the Income Tax Act)

Principal residence

Once you are separated with your wife and transferred your matrimonial house to wife then how long you have to wait or eligible to buy another house as principal residence? I’d like to know after separation if I buy another house for living, Can I show my residence as principal residence and any gain on … Continue reading Principal residence

Deemed disposition of Inherited Foreign Property

Mother-in-law, a Canadian Citizen, passed away on Jan 30, 2017. She had pension income for Jan/2017 only, and had no other Canadian assets except for a property in Hungary she inherited from her mom in 1983 along with her 2 siblings. The cost base of the foreign property was worth less than $100,000 at that … Continue reading Deemed disposition of Inherited Foreign Property

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