Answers Archive

Re: Is there a Canadian Inheritance Tax?

Hello, There are no taxes levied on cash inheritances, foreign or Canadian. Any applicable taxes are paid by the estate of the deceased. The only time the recipient would pay tax would be if the money earns interest after it is transferred to her. Anything earned before the money is transferred to her is taxed … Continue reading

Re: Any tax credits available for Students?

My daughter just went to University as well. Would be very interested to know what we could save on taxes.

Re: What is the Community Volunteer Income Tax Program

Hi Lilliana, I believe it is a program to help taxpayers get there income tax prepared for free if you are a low income earner. Volunteers usually students in an accounting program volunteer to prepare taxes. Hope this helps.

Re: What happens if I don’t have enough money to pay taxes?

Hi Stephan It is important that you do file your taxes by the April 30th deadline even if you don”t have the money to pay your taxes. By not filing you will be charged interest on the owing amount of 1% per month. CRA does understand some people may not be able to pay immediately … Continue reading

Re: My real estate investments have proven to be successful for me, should my next step be incorporation?

Incorporating a business is not required but it does have some benefits you may be interested in. In terms of taxes, rental income is most often taxed at the highest rate of 46%. An incorporated business (with more than 5 employees) can be taxed 16% (depending on the province you are operating from) for the … Continue reading

Are there any new tax refunds I can claim for the upcoming year?

I know there’s a couple of new ones including the First time donor’s super tax credit, the adoption expense tax credit, and the labour-sponsored venture capital corporations tax credit. There’s also some changes regarding the dividend tax credit, and the lifetime capital gains exemption. Here’s a link with more info.

Re: US and Canadian Taxes Please help!

I think Canada has a foreign tax credit that will give some of the tax paid back to you. Unfortunately you may have to pay both US and Canadian tax.

Re: Tax implications on mutual funds for an American

Great question, I’m not sure about US tax implications but I know in Canada if dividends are paid you are liable to pay taxes. I would suggest opening a TFSA account or reinvesting the dividends that way you defer paying taxes but you should speak to a tax adviser or mutual fund expert for this … Continue reading

RRSPs Contribution Limit?

Hi Limit for 2013 is a.) 18% of your previous income (2012) b.) Or the 2013 contribution limit which is $23,820 Penalty is 1% a month on the excess amount. For more info on RRSP’s, click here.

Re: Canadian doing business in the U.S., can they charge for GST?

Hi, Thanks for contacting me. The contractor should register for GST/HST so that he/she can receive a rebate from the Canada Revenue Agency on GST/HST paid on business purchases. The contractor cannot charge GST/HST to you, since this is considered an export service and is “Zero Rated”. Your friend should also complete form W8-BEN and … Continue reading

Re: I’ve already filed my income tax, but the CRA has sent me a “notice of assessment,” what is it and should I worry about it?

No need to worry about it Zach. The CRA (Canada Revenue Agency) will send you this document every year after you’ve filed your income tax return. This piece of paper is a summary of what you filed for the year, what you may owe or what you received as a refund. You don’t have to … Continue reading

Re: How do I charge HST to a client if they’re in another province?

Hello, You must charge your client GST on the expenses you want them to reimburse you for. In addition, you can claim the GST paid on business purchases as an input tax credit. For example, let’s say you paid $105 ($100 + $5 of GST) on supplies. If you want to bill this expense back … Continue reading

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