For questions that relate to the laws, practices, and products of Canada.

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1answer
17 views

What is an “RRSP deduction limit” for?

I'm not asking what my limit is—I can see what is the dollar amount of my deduction limit. Rather, I don't quite grasp what is an RRSP deduction limit for? Why is there a limit? A limit to ...
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0answers
15 views

Where to park money from the sale of a rental property?

If I sell my investment property to raise cash for the purchase of a new home, I am required to pay capital gains tax (i.e. income tax on 50% of the gain amount.) Is there a way to park this money ...
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1answer
15 views

Do employer matching contributions in an RRSP count towards the contribution room?

My employer gives a matching contribution for my RRSP. So let us say if I contribute $5000, the employer contributes $2000 (free money.) Does this $2000 contributed by my employer also eat up my ...
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1answer
15 views

How does TFSA contribution room carryover work, e.g. unused amounts and withdrawals?

Is the TFSA contribution limit per year $5000/person? How are unused contributions carried over? If last year I contributed only $3000, then this year, would I have $7000 contribution room ...
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0answers
64 views

Is it a safe strategy to protect a high dividend stock with a collar?

I want to find a few high dividend paying stocks (~10% yield) for my tax sheltered portfolios. I also want the stock to be reasonably safe. I am looking at this list. Problem is, I don't know how to ...
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1answer
19 views

How do I charge GST & QST for my freelancing?

I'm based in Quebec and intend to offer freelance marketing consulting services. I intend to find clients from online freelancing websites such as Odesk. This means my clients could be from outside of ...
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1answer
37 views

Reporting a tax refund from a previous year as income

I'm wondering if I have to report income from my 2013 Canadian tax return on my 2014 Canadian tax return? I'll be filing as a non-resident if that's important.
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1answer
53 views

Claim rental expenses as a tax credit

If I am renting the apartment I live in, can I claim part of the rent I pay as a tax credit? I am looking at this can-you-claim-rent-in-ontario But it does not mention if you need to be below a ...
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1answer
28 views

How much tax credit I get for monthly metropass in toronto

I pay for my own public transit monthly pass in Toronto. I am not sure how much of the amount I pay is tax deductible? ...
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0answers
64 views

How to recover value from a term life insurance policy?

This happened in Canada. A person has a life insurance policy that matures in 2024 (in 9 years) and he has been paying monthly premium since 1996 (for 19 years). He lost his job and is not able to ...
3
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0answers
25 views

Including 401(k) contributions on Canadian tax return

I am a Canadian resident who made US income, and contributed to a 401k. I know I must include my 401k contributions on my foreign income, but what about my employer's contributions? Also, what are ...
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1answer
31 views

Do I pay withholding tax on a US company trading on TSE

I am talking about Cenovus energy:TSE:CVE It trades on both NYSE and TSE. If I buy it on TSE and pay in CAD, in my TFSA, do I still pay the 15% withholding tax, that cannot even be recovered using ...
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1answer
25 views

What Percentage of my Income do I Have to Pay in Employment Insurance (EI) Deductions?

I am from Calgary, Alberta, and I am wondering how much % of my hourly wage will be paid to my EI (employment insurance). Is the percent rate different for every worker, if not, what is the fixed ...
6
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2answers
538 views

Is Buying American Shares in Canada a Good Idea?

I am looking at buying some American based shares such as SPY (the S&P 500 Index ETF), but I am in Canada. I am wondering if buying something like this will have any consequences (e.g. I have to ...
5
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1answer
145 views

Never filed my taxes for many years in British Columbia. What can I do?

I suffer from depression and unfortunately never filed my income tax in British Columbia, Canada. I always paid my taxes through my employer. How can I file now and what would the penalty be?
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1answer
43 views

Deducting home costs if I work from home on the side?

I have a question on how to claim deductions if I use my home as a home office. See http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/cmmssn/hm-eng.html Let us say ...
3
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0answers
20 views

Received Stock options as UK Employee, however exercised the stock as a Canadian Employee. What is my tax liability?

I work for a global company. As a UK resident, my company awarded me stock options & Restricted stock. The stocks is traded on the NYSE. I exercised the stock in Canada. I transferred to the ...
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2answers
77 views

When filing taxes in Canada, in what cases does box 39 on the T4 get reported as half of box 38?

When filing taxes in Canada, when does box 39 get reported as half of box 38? In my case, I got ESPP amount reported in box 38, with box 39 missing in my T4 altogether. According to my accountant, the ...
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0answers
26 views

Canada: can an international student file tax return for past four years

I'm an international student about to graduate. I never had a work permit, no income, no SIN so never filed tax return before. Stupid enough, I just realized I can use my tuition credit, so can anyone ...
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1answer
41 views

How much CMHC fee do I need to pay if I cannot put 20% down on a new home

I am trying to calculate how much CMHC fee I will need to pay if I can only put in 10% downpayment on a new home as opposed to 20%. So as per this calculator: It shows:8640. My question is: is the ...
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0answers
37 views

Letting someone else pay in a check (made out to me) to their account?

I have a check made out to me (call me John Doe). I'm permanently away from my home country, where I have bank accounts; I'm now in Canada. I'd like to let a friend (call her Jane Doe) pay the check ...
2
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0answers
19 views

Understanding the Home renovation tax credit in ontario

I am trying to figure out the home renovation tax credit Does it only apply to the home I live in? If I currently live in a rental property but am allowed to do renovations, can I apply for the ...
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1answer
28 views

Tax exemptions for US stocks held in a Candian account

As a Canadian, if I buy US stocks and receive dividends in a non tax sheltered account, then those dividends are not suited for dividend tax credit. Also, if I sell and incur a gain(within 1 yr), do I ...
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1answer
38 views

Contribute to RRSP without deducting?

I am in a lower income bracket, however, like the idea of contributing to an RRSP because any earnings within the plan are tax-exempt. Is it possible to contribute to my RRSP, but not have it deduct ...
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1answer
58 views

If I join a prop trading firm, will I enjoy low commissions

I often hear that professional traders pay negligible (<1 cent ) commission per trade. Is this true? Does this mean that if I open up an account with a prop trading firm in Toronto and put up ...
-1
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1answer
118 views

What is the pitfall of using the Smith maneuver

What are the pitfalls of the Smith maneuver? It seems too good to be true and almost makes a case against fully paying down your mortgage :) What is the catch?
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2answers
33 views

Withdrawing from RRSP to pay income tax owed to CRA?

While filing my tax return, if I find that I owe taxes to CRA, but I don't have any cash on hand to pay the taxes, then I can withdraw from my RRSP. Now, if I withdraw money from RRSP, do I first ...
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0answers
21 views

Is the average cost considered while calculating capital gain [duplicate]

If I buy 100 shares of XYZ at 1 $/share and another 100 shares at 2 $/share and sell all 100 at 3$/share, do I pay tax on: 100*3 - 100*1.5 = 150 $ (i.e is the buy price taken to be the average of my ...
2
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3answers
50 views

What Canadian account number format do European banks need for wire transfer instructions?

I am trying to transfer funds from my account in Europe to my account in Canada. On the sending (European) bank's transfer instruction form there is a field I need to fill-in in the beneficiary's ...
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2answers
133 views

Possible to remove condo townhouse fees?

Apologies if this is a dumb question. I was recently advised by a real estate professional that I should look into getting myself a condo townhouse because they are way more affordable than buying ...
0
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1answer
73 views

Can I avoid an audit by submitting documents early?

I make a lot of charitable donations every year (I donate 10% of my net income to my church), lots of people in my church get audited every year. Is there a way I can avoid getting audited by just ...
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1answer
99 views

What are Some Good Low Cost Index Funds to Invest in for the Long Term?

I am 19 years old (in Canada) and have heard that "Low Cost" index funds are a safe and highly profitable way to invest small amounts of money each month. My aim is to invest every month until I am ...
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0answers
40 views

As a US citizen studying in Canada, do I pay income taxes in either country for Scholarships?

I'm a US citizen in graduate school in Canada. I have an annual scholarship of around $20,000 CAD. I've been told (although I'm not sure) that this doesn't qualify as income in Canada (implying I ...
0
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1answer
43 views

Non-resident alien in the US working in Canada under a TN Visa - Determining sponsor for tax purposes?

I am a Canadian citizen (and resident) who did a 4-month internship in California under a TN visa (as a non-resident alien) in 2014. I am filing out form 8843 for tax purposes, and it is asking for ...
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1answer
43 views

Worked as a non-resident alien in the US (Canadian citizen and resident) for a few months under a TN visa, how do I file a tax refund?

For a few months in 2014 I worked as a non-resident alien under a TN Visa in the U.S. I am a Canadian citizen and resident. I only worked a few months so I shouldn't have to pay much in taxes, but ...
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0answers
30 views

Do I have to file two tax returns if I am employed and self-employed?

I am employed full-time by an employer that does tax deductions but I also work freelance on the side which I do have a business number for and collect HST. I know I have to fill out the HST forms ...
4
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5answers
349 views

How can people have such high credit card debts?

Apparently, the average US household has 16000 US$ in credit card debt, with even college graduates having 2000 US$ by the time they graduate. In Canada, this figure is almost 27000 CA$. For ...
1
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1answer
62 views

If I buy a $0 subsizided phone with a carrier, can my credit card extended warranty apply to the phone purchase?

I'm currently considering getting a subsidized phone for $0 with a 2 year contract through some Canadian carrier. I'd like to use one of my credit cards that extends the manufacturer warranty up to 2 ...
3
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1answer
104 views

Unused Education Tax Credit carryover amounts in ON Canada

I am filing taxes in Ontario, Canada, using simpletax.ca which has been a super useful platform. I am struggling to understand how it is calculating my refund, however. From 2013, I have $16,473 in ...
2
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0answers
59 views

How soon (after your first credit card statement ever) do you get a credit file/history in Canada?

How many days after your first credit card statement EVER does one get a credit report on file with one of the two Canadian bureaus? I'm trying to develop Canadian credit on my first credit card and I ...
4
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1answer
78 views

Tax implications of owning a Roth IRA as a Canadian resident?

I am a Canadian citizen, U.S. resident with Roth IRA, contributing for 15 years. I will be moving back to Canada in 2 years, am 47 years old, and will leave the Roth with Vanguard and not touch it ...
2
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1answer
96 views

Ripped plastic Canadian currency/bills

Can a ripped Canadian Plastic Bill with 60% portion of the bill remaining containing both serial #s still get full value?
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1answer
67 views

Calculating cost basis

I am trying to calculate the cost basis of a mutual fund held in an investment account (rather than a tax-sheltered account), for tax purposes. Date Trade Units Unit Price Amount ...
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2answers
60 views

What is meant by pensionable earnings

On my T4 from my employer, it says : CPP/QPP pensionable earnings. And there is an amount for this field. What does this mean? Is it the pension I am going to get when I turn 65? I dont think so. ...
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1answer
75 views

Why Does My Tax Free Savings Account Say I Have 0 Contribution Room as of 2015?

I am living in Canada, and I recently went to http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html and tried to check my TFSA contribution room for this year. I turned 18 on February ...
15
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1answer
2k views

I'm being asked for installment tax payments, but I just started as a salaried employee. What should I do?

For the last decade I've been a freelancer. I had a balance owing two years ago, so last year (2014) I had to pay by installments. However, on January 1st, 2015, I started as a salaried employee at ...
4
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1answer
141 views

To what extent are wedding prices negotiable?

Wow, wedding services are expensive. But maybe that's just the list price? Maybe we're supposed to say "well this is a great offer but I need you to come down 20% or we're going to use the golf club ...
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1answer
29 views

US Citizen living and working in Canada for US company - HST?

I am a US citizen living and working in Canada for a small US company that provides consulting services to a large Canadian company. I am considered an independent contractor; and am paid in US ...
1
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1answer
99 views

Tax implications for receiving a car as compensation for work

For a few months in 2014, I was working with an early stage start up and they weren't able to compensate me in any way except the promise of equity when we started. A month in to my tenure with them, ...
0
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1answer
56 views

Are bonds taxed every year or only at maturity

If I buy a bond that matures in 2 years, do i pay taxes only when i get my principal and interest back at maturity? Or do i pay some taxes on year1 and rest on year2?