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Gift from Parents in India

Hi Krithi, From a Canadian perspective, you do not have to pay income tax on the gift received. If your parents are non-residents of Canada, they also have no tax payable to the CRA on the sale of the property. Note: your parents will likely owe Capital gains tax to the Indian taxation authorities.

Gifting Corporation owned Real Estate to a Relative/ Non-Relative

Hi Paul, When a taxpayer makes a gift of property / shares, the taxpayer is deemed to have ‘sold’ the property / shares for their fair market value at that time. This can trigger a capital gain. It does not matter if the recipient of the property / shares is a relative or a third … Continue reading Gifting Corporation owned Real Estate to a Relative/ Non-Relative

GIFI code for car/Mileage expenses

Report the mileage expense on GIFI code 9281 (vehicle expenses).

Canadian on TN Visa recent mover

If you moved to the US on a permanent basis (TN visas are renewable) and you do not have a house, spouse, or children in Canada, then you became a non-resident of Canada as of the date of your departure from Canada. File a Final Canadian Tax Return (i.e. a departure return) with the CRA. … Continue reading Canadian on TN Visa recent mover

US rental property -owned jointly – filing 1040nr

You each have to file a separate US 1040-NR return with Schedule E. Divide the income and expenses on a 50/50 basis.

Dual American-Canadian citizen temporarily in Canada

If you resided in Canada for less than 6 months, and your employer does not have a fixed place of business in Canada and the salary was not charged back to a Canadian subsidiary of the US employer, you do not have to pay tax in Canada on your US employment income. This is according … Continue reading Dual American-Canadian citizen temporarily in Canada

Claiming child care (Higher earner)

If you were separated and you kept the children, you can deduct eligible child care expenses on your tax return. After you reconcile, the lower income spouse must claim child care costs.

Filing return as emigrant /non-resident

Please file a T1 general return and specify the date of emigration on the return (April 2022). In addition, contact Service Canada to inform them that you became a non-resident of Canada in April 2022, so that they begin deducting non-resident withholding tax from CPP and OAS payments made to you.

would I have to hire a real estate agent to transfer a house from corporate ownership to personal ownership?

You do not need to hire a realtor. A lawyer can complete the sales transaction for you.

deemed disposition of rental building

Hire a certified appraiser to determine the breakdown of the selling price between land and building. Or you can ask this information from your realtor. The City Assessment is not reflective of fair market value, and should not be used.

How to avoid double taxation with India

As you correctly pointed out, India’s tax year is different from Canada and ends on March 31, 2023. Until the Indian return is filed and a tax assessment received, enter an estimated amount of Indian income and Indian tax paid on your Canadian tax return. Once the Indian return is filed and assessed, you will … Continue reading How to avoid double taxation with India

How to Report Capital Gains Distributions from REIT on T2

Report capital gains distributions on Schedule 6 of the T2 corporate tax return.

Principal residence gift to family member (adult)

This is a bad idea. If you transferred your property to your sister for below fair market value (e.g. for $1), then the CRA will reassess the sales price to be equal to the fair market value of your property at the time of the transfer. What’s worse is that your sister’s cost basis in … Continue reading Principal residence gift to family member (adult)

Tax policies on formation of new company

Hi Vinesh, The corporate tax rates on active business income are as follows: 1.12% – if the corporation is not controlled by non-residents of Canada. To meet this requirement, at least 50% of the corporation’s voting shares should be owned by residents of Canada. Note that the 12% rate applies to net active business income … Continue reading Tax policies on formation of new company

How does my income in India calculated in Canada?

Hi Ram, If you moved to Canada with the intention to live in Canada permanently, and you have a permanent residence (either rented or owned in Canada), then you are likely a tax resident of Canada pursuant to the Canada-Indian tax treaty. Having said that, I need a list of all of your ties to … Continue reading How does my income in India calculated in Canada?

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