Archives: Questions

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Other Private Corporation – paying salary to myself while residing in US

Thank you Mr. Madan, for answering my previous questions. If I become a US resident, my Canadian corp becomes “Other Private Corporation”. Can I still continue to use the “Other Private Corporation” to do consulting and online software sales and pay a salary that is equal to the total annual revenue? This way the corporation … Continue reading Other Private Corporation – paying salary to myself while residing in US

Transfering rental properties from personal to corporation

Great website and thank you for all the answers you gave to the people like me. I have 3 rental houses in my name and till this year the income and expenses were reported on my personal taxes. Recently I opened up a corporation and put these properties into the trust of the corporation. How … Continue reading Transfering rental properties from personal to corporation

is possible to pay CPP every month during the year as a self-employed individual?

I am self employed and I was wondering if is possible to pay CPP every month during the year instead of the end of the year. Thank you in advance

Capital gain for principle res

Hello, I bought the house august 2007 and lived until December 2010 as my principle residence, from January 2011 to until June 2016 the house was rental property and I sold the house June 2016 with $ 75000 Gain. Now question is can I exempted all capital gain under section 121. Could you please advise … Continue reading Capital gain for principle res

immigrant shareholders’/directors’ relocation expenses (incurred to start the business)

Hi Alan, unusually helpful website – likely to approach your company if I can’t manage my tax affairs on my own. But would like to DIY to learn… My partner and I immigrated to Canada, with the expressed/stated intention to start up a business here mid 2016. We had permanent residence status upon arrival. As … Continue reading immigrant shareholders’/directors’ relocation expenses (incurred to start the business)

US non resident-Canadian citizen, property owner in Canada

As a Canadian going to have green card soon,What is the taxation look like with having a house in Canada which rented and still under mortgage?If we want keep the house ,probably we should claim non-canadian residency as soon as get the green card.What is the tax implication in Canada for rent , interest on … Continue reading US non resident-Canadian citizen, property owner in Canada

Business Tax On Earning US Dollars While Living In Canada

I am also living in Canada and currently self-employed and working from home online. I am earning USD from more than one US-based companies in exchange of providing them remote business services like back office management, reporting. etc. using online connections. I am receiving my remuneration via checks in mail. As I am not a … Continue reading Business Tax On Earning US Dollars While Living In Canada

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

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 RESP and RRSP contribution as a non-resident

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

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