Archives: Questions

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Unlmtd common shares & how to declare %share distribution?

Hi Allan, I incorporated recently on my own and my Articles states Unlimited common shares as Classes of shares and Restrictions on share transfers as without the approval of the directors and shareholders option. My query is, since me and my spouse are listed as the only two directors, have I made a mistake in … Continue reading Unlmtd common shares & how to declare %share distribution?

Declare loss in Personal tax due to Loss in Business

Hi Allan, I have been following your youtube channel for some time now and I really enjoyed your presentation and valuable information given. Just have quick question hope you can help: I live in Alberta and set up an Alberta incorporation in 2017. I put some money from personal account into my incorporation but then … Continue reading Declare loss in Personal tax due to Loss in Business

Tax return for corporate passive income

Hello, First of all I want to thank you for sharing your knowledge with the rest of us through your blog and articles. I tried to find information online on how to calculate or at least estimate taxes on passive income in a corporation. I read your article How To Prepare Corporation Income Tax Return … Continue reading Tax return for corporate passive income

Change in use election for proncipal residence

Hi Allan, thanks for having a great website resource available. Have a question regarding change in use of principal residence to rental property. Is there a time limit on when to file a change in use subsection 45(2) election. I read somewhere that we can’t file that election after 10 years from when the change … Continue reading Change in use election for proncipal residence

T2 CCA how to record Proceeds of dispositions assets

We’ve sold most of our assets that we have depreciated. These were sold for the original costs. The remainder assets are either worn out and trashed or we kept for personal use as the business is now closed. So how is this record in CCA in a T2 tax return. For example: $30,000 worth of … Continue reading T2 CCA how to record Proceeds of dispositions assets

dividende or salary

I own a small business, what would be profitable, get a salary or write myself a dividend. if it’s a dividend whats the maximum. Thank you

Do i need to file a final (Departure) tax return as a non-resident?

I was on a work holiday visa in Canada and lived there from July 2015 to January 2017 and permanently returned home overseas after that. In 2016 I filed a CRA tax return as a non-resident since I had a tax treaty with my country abroad. Now i’m wondering if I have to file a … Continue reading Do i need to file a final (Departure) tax return as a non-resident?

missed interest payment on Prescribed rate loan

Hi, As the title suggests, I made an error and did not make the interest payment within 30 days of my low interest loan to my trust. The trust’s year end is 12/31 and it is now 2/27. Is there anything I can do to make things right, ie not have the gains of the … Continue reading missed interest payment on Prescribed rate loan

Withdraw cash from hold co

Hello, I was wondering how you could withdraw money from a hold co. to use personally without having to pay significant tax? The money was sent through tax free dividends from my operating company’s to the hold co.

Any tax deduction for a Stock grand like there is for a Stock Option ?

If you get $1000 dollars worth of stock based on today’s stock price of $10 (so 100 shares) and in 3 years the stocks vest at $15. You have a income of $1500 in three years that you need to pay tax on. Is there any deduction like there can be in a stock option … Continue reading Any tax deduction for a Stock grand like there is for a Stock Option ?

Personal Residence under holding company

I have a piece of land in my holdingco. If my building company built a house on the land for my personal residence. Can I follow the steps stated in your Vedio about this subject by incorporating another company that would buy the house from my holdingco and then using the house as personal residence … Continue reading Personal Residence under holding company

Dividend paid by Opco to Holdco

Opco has paid management fee to Holdco. The company management wants to reflect it as dividends. In Opco the dividends will be charge against the retained earnings but in Holdco how will dividends be reflected in the p&l statement. I understand that intercorporate dividends are non taxable to holdco.

Do I file canadian tax return if i’m living in UK?

I recently left Canada to live/work in UK on a two year visa. I do not own real estate in Canada, but still have TFSA and bank accounts in Canada. Will I need to file Canadian tax returns for next two years?

Deemed non-resident Canadian

Can I call myself as Deemed non-resident Canadian? If in name of significant residential ties, my wife and kids living in Canada but I’m living outside of Canada and for tax purpose I’m resident of another country (India). As per CRA website (“If you established ties in a country that Canada has a tax treaty … Continue reading Deemed non-resident Canadian

Best way to deduct home office expense with corporation

My primary workspace is my home office. I pay a monthly rent and was wondering what is the best way to deduct a percentage of this expense to the corporation? I currently do not do payroll and would like to avoid doing so if possible to keep things simple. What are my options?

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