Questions Archive

What is the difference between total expense and personal portion?

I had a recent client have a question with regards to rental properties. On my t776e(12) in the expense portion I’m not sure the difference between total expense and personal portion?

Can I Declare A Terminal Loss To Lower Capital Gains?

I purchased a rental for $603,000 and sold for $817,000. Never used CCA. I did provide loan of $200,000 as downpayment. Can I declare a terminal loss to lower capital gains. Thank you for your help.

How does capital purchased in a previous year reflect on a balance sheet?

Hi Alan, I’ve been using your “How to Prepare Financial Statements” in getting ready to file a T2 return for a corporation. It’s been open for a year, and I’m bit confused with how capital assets (a computer) would be reflected on the equity part of the balance sheet. For simplicity’s sake, let’s say net … Continue reading

Depreceiation Expense for Auto

Hi, In 2016 I used my own car for the first time as a Uber driver. I financed this car over 30,000.in 2014. For the depreciation expense I am confused how much will be the depreciation expense for 2016?

Mortgage Interest on a Home

Is interest paid on the mortgage of house designated as your principal residence added to the ACB of the residence when sold? The mortgage interest was not expensed for tax purposes but certainly added to the cost of the house over the years.

Is a ROC to a non-resident subject to withholding tax?

Hi there, I am non-resident of Canada and I have a BC corporation. If I returned any of my initial equity to myself, will that payment be subject to Canadian withholding tax? And, would I need to file any form when doing that. Thank you

RESP and RRSP contribution as a non-resident

Greetings Allan, We have some confusion please help us out and clarify. Being non resident I assume we can still contribute in child’s RESP. However, I believe Govt top up will stop immediately. Is that right? Moreover, being non residents I understand we don’t get tax benefits to invest in RRSP. However, can we still … Continue reading

do i need T4A issue

Hi, I have small business of massage started in August 2016 and i paid the monthly payments to 4 works. Do i need to issue t4a or no thanks

Refundable Dividend Tax on Hand (RDTOH)

You mentioned “if corporation has a balance in its Refundable Dividend Tax on Hand (RDTOH) account, it will receive a tax refund at a rate of $1 for every $3 of dividends paid to you”. does cra send cheque. how do I report it in my books and T2 Corp Tax return. Thanks.

I Am A Pharmacist. Just Got My License As A Real Estate Agent. I Started Working As Independent Contractor For A Broker. Do I File Llc Or Scorp?

income employee tax breaks for 6 figures

I Make Over 100,000 As An Employee And Rental Income. I Offset My Rental Income But I’m Left With 98k As Income Tax. Is There Anyway I Can Take Apart Of Tax Breaks? I Heard About Income Splitting. Would That Be Ideal? Since My Wife Makes 40k? Is There Any Other Additional Tax Breaks I … Continue reading

My spouse lives in Canada. I’m a Canadian in the US (declared non-resident). Do we declare our marriage and file separately (Me in US and him in Canada) or do it jointly?

We will be married next week. We are both Canadian citizens but he lives in Canada and I live in US on a working visa. I have already declared non-resident to Canada last year and he plans to move here in Summer 2017. So for the 2016 tax year, how should we file? Should I … Continue reading

Stock market taxes

Please clarify re tax rates for Canadian resident for both capital gain and dividends received whilst investing in US and CND stocks separately. Thanks, Ivan

writing Savings interest against mortgage interest?

Hi Allan, If I have interest income coming from a savings account, I know that I am taxed at the marginal rate, but is there any way to write it against the mortgage interest I am paying? ie can I deduct mortgage interest against a savings account interest? I want to save on taxes. Thank … Continue reading

HST Payment correction

I made a calculation error and included the same income amount on two successive HST returns. Can I simply deduct the overage (excess) amount from my current HST filing, or do I have to go through the steps of correcting the prior return?

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