2
votes
2answers
54 views

Is a Canadian student in the U.S. tax exempt for both W-2 and 1042-S?

I am a Canadian student at a U.S. university as a nonresident alien. I have about 4k of wages for my W-2 and about 5k of wages for my 1042-S income code 15 scholarship grant. So the total is less than ...
1
vote
0answers
58 views

For the purpose of filing taxes in Canada, is participating in ESPP considered to exercising stock options?

My tax professional and company payroll department are in a disagreement about what box on the T4 the taxable benefit of my ESPP should be included in. The payroll (Canadian office of a US based ...
1
vote
1answer
55 views

Is there a risk I may, eventually, be required to pay taxes on the investment returns from my TFSA?

My TFSA contributions grow, without my having to pay taxes on the growth they experience. Is this benefit likely to continue indefinitely, or will I at some point be required to pay these taxes?
3
votes
2answers
112 views

Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?

Previously, I was a simple case: I earned a salary, and I paid taxes. Therefore, I've been filing my own tax returns using online software. Now: + wife, + kid, + mortgage, + want to contribute to ...
1
vote
1answer
119 views

Do I pay taxes where I live, or where I work?

Why we need to pay taxes? Because society needs money for social service, police, education, roads, medicine and so on. Therefore we need to pay taxes where we live. For example we live in one ...
1
vote
1answer
51 views

How to find out what Capital Cost Allowance would apply to the condo I invested in?

In this example to claim Capital Cost Allowance on the CRA website, how did the person Gwen come up with an amount of 1200 for the first year? I have a condo that I rent out. I claim my expenses ...
0
votes
0answers
32 views

Financial aid and tax returns in Canada

I'm applying for financial aid for American universities and I'm confused by the concept of tax returns. I live in Canada and we usually file our tax returns in April. However, American universities ...
1
vote
2answers
121 views

Is it wise for an independent contractor to avoid corporation tax by planning to only break even each year?

From what I understand about corporation tax in Canada, you only pay tax when you make a profit. So, if I open up a software corporation and work as an independent contractor, and then whatever the ...
-5
votes
1answer
421 views

If I take a loss when I sell my car, can I claim a capital loss deduction on my income tax return?

If I sell my car off at a loss, can I write that loss off against my income to save on tax? Does it matter if the car was used just for personal leisure use, or if I used the car to generate business ...
0
votes
1answer
34 views

How to fill tax return for income received to paid the health insurance premiums that my spouse pays for me?

My health insurance is provided by the employer of my spouse, but my employer wanted to provide the benefit of insurance so he paid me the money that my spouse was paying, so if my spouse pays $40 for ...
1
vote
1answer
64 views

Canadian Contractor for US Company - Tax Forms

How are taxes handled in this case. I am a Canadian contractor doing all the physical work in Canada but the deliverables are sent digitally to a USA company who pays me by invoice. Do I need to ...
4
votes
2answers
143 views

Usage of non refundable tax credits

I have spent 5 years in Canada. The first four were as an international student whereby even though I did not have any significant or no income, I filed my taxes so that I could accumulate ...
1
vote
1answer
56 views

Donations for a new computer taxation help?

I make music on youtube and my equipment is not the greatest. I would like to accept paypal contributions to help me get a better equipment. my question is do i need to declare these donations in my ...
10
votes
2answers
112 views

Does a restaurant have to pay tax on a discount?

I have a coupon which gives me 25% discount in a restaurant. Does the restaurant pay tax (and therefore should they charge me tax) on the full amount, pre-discount, or the amount after the discount? ...
5
votes
0answers
57 views

Can I make a final RRSP contribution after moving to the U.S.?

I moved from Canada to the U.S. (California) in August 2013. I am wondering whether I can make one final contribution to my RRSP account for the 2013 tax year (transferring between Canadian accounts) ...
-1
votes
1answer
137 views

Can I connect a PayPal account to a business bank account instead of a personal bank account?

If I write online content and get paid through my PayPal account, and if the PayPal account is connected to my business bank account, does my income automatically become my corporation's income? ...
-1
votes
1answer
93 views

Why does paying out all corporate income as salary reduces the risk of being labeled a personal service business?

This blog article on PSB outlines the rules clearly. But in one of the comments it says: However, if you are paying mostly salary to yourself, your risk is minimal even if assessed What is the ...
0
votes
1answer
190 views

How is the Canada Employment Amount tax credit calculated?

To calculate the Canada Employment Amount as a non refundable tax credit, this link explains: Canada employment amount is a non-refundable credit for work-related expenses, such as home ...
2
votes
1answer
211 views

Should the cost of using public transit get deducted from my personal income or my corporations' income?

As a full time employee, certain costs are deductible from personal income. (e.g cost of public transit pass.) When the full time employee becomes an independent contractor, do these expenses ...
2
votes
2answers
921 views

Do I need to file taxes jointly with my girlfriend if we live together?

Before I met my girlfriend, I lived in a condo. Now I rented it out and I live with her and pay her rent. Now we are not legally married or signed common law agreement or anything like that, but I ...
1
vote
1answer
553 views

As an independent contractor, should I always charge the client the GST/HST?

As an independent contractor, does my hourly rate determine if I should charge GST/HST to the client? Or should I charge it always?
-2
votes
1answer
120 views

What corporation tax am I required to pay as an independent contractor?

Refer to this link at Canada Revenue Agency. I am unsure that for an Ontario resident who opens up a corporation, what corporation tax would I pay? Let's say I charge 60$/hr + 13% HST to my client. ...
0
votes
1answer
85 views

Is money from selling an investment property taxed at the marginal rate?

If I sell my condo (an investment property, not my primary residence) then I imagine I need to pay tax (provided I make a profit). If I don't make profit, can I use the loss against my salary income ...
-2
votes
2answers
230 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
2
votes
1answer
135 views

Does the Canada Revenue Agency (CRA) tax other income at the marginal tax rate?

I am employed full time as a software developer. If I wish to earn money on the side doing Wordpress websites through Odesk, Elance, etc., I will report that to the CRA under other income. Is this ...
2
votes
2answers
349 views

Never filed FBAR in 17 yrs and now need to cash out RRSP

I am a Permanent Resident from Canada. I moved to Texas in 1996 and I never filed any IRS documents (such as FBAR) informing them of my Canadian investments. I have about $33,000 in RRSP and $18,000 ...
1
vote
1answer
721 views

What capital gains taxes do non-resident Canadian citizens owe?

I live in the Caribbean. I remain a Canadian citizen, but a few years ago I declared myself a non-resident for tax purposes. Assuming I have no income in the Caribbean, and I make $100,000 on stocks ...
1
vote
1answer
718 views

What taxes do I pay on interest earned on a savings or GIC account?

If I put 10 000 $ in a savings account that pays 1% interest, then after a year, I get 100 dollars in interest. Is this 100 $ taxed at my marginal tax rate? Does the answer change if the account was ...
1
vote
1answer
283 views

Can I claim a tax credit on money I send to India for my parents' healthcare?

I live in Canada and I'm a permanent resident. If I send money to my parents in India, can I claim any kind of tax benefit on that e.g. under the caregiver tax? I know if I bring them here and they ...
4
votes
1answer
199 views

How do I tell the Canada Revenue Agency that they're sending someone else's documents to my address?

A business acquaintance used my address for mail correspondence, with my permission. Actually, he even didn't stay in my place and I don't have any of his personal belongings here. Later, I asked him ...
5
votes
2answers
139 views

Shelter personal corporation dividends in a TFSA?

As I understand it, it is possible for people who own their own corporation/small business to pay themselves through dividends. Since they own 100% share in the business they receive 100% dividends. ...
6
votes
1answer
195 views

Any Canadian tax shelter for lending to friends or family?

I am considering helping friends or family out of credit card debt, which is costing them ~18% per year by giving them a loan at more like ~3% (kind of like consolidated credit/debt). Is there ...
-1
votes
1answer
235 views

Does a corporation pay same capital gains tax as an individual?

If I open up a corporation in Canada and the sole purpose of the corporation is to trade stocks, does the corporation pay the same kind of taxes on investment gains as if I were trading those stocks ...
4
votes
1answer
415 views

Non-tax-resident of Canada needs to pay taxes for investment account earnings?

if a person were to be a non-resident of Canada without jobs, a spouse, kids, asset (houses, cars etc.) in Canada, then that person would not be obliged to file a tax report. However, if that person ...
2
votes
0answers
132 views

Canada: Filing multiple years income tax (carry-forward)

I've been a bit irresponsible with my taxes as a student, and now it is time for me to make up for the years of neglect, and file my taxes for the 2007-2012 periods. I've not filed taxes starting in ...
0
votes
1answer
91 views

Canada: No taxes filed since 2003 while living in another country

My sister has been living in Central America since late 2002. She worked at small jobs to stay afloat, but didn't file taxes from 2003 onward. Now she is starting to pull in some proper writing jobs ...
2
votes
1answer
157 views

Foreign national moving from US to Canada, how to file tax return (340 days in US)

I recently started a new job in Canada in mid-December, which means I am only on Canadian payroll for 3 weeks, and for most of the year I was on US payroll with my previous employer. I am a citizen of ...
3
votes
1answer
996 views

How do I enter Canadian tax info from US form 1042-S and record captial gains from cashing in stock options?

I am assuming these issues are related. I am working in Canada for a US company. I buy stock options every quarter. In 2011 I cashed in some stock options and received the cash. How do I enter the ...
1
vote
1answer
1k views

Child care receipts and taxes

I live in Ontario. I made 33,000. For 2012 and am a single mother who paid out $6,540. In child care. How much of the child care expence can I expect to get back???
15
votes
2answers
9k views

Canada: Girlfriend did not file tax return since 2006. What to do?

I was just starting my girlfriend's tax return when I realized I didn't have her notice of assessment from 2009. I wanted her tuition carry forward so I decided to call revenue Canada to see what the ...
6
votes
1answer
694 views

What tax rules apply to selling of digital goods, specifically in-game currencies?

We are selling an in-game currency to be used to buy virtual objects that will be used and consumed in the game. How do taxes relate to this type of purchase as compared to selling physical goods ...
4
votes
1answer
90 views

Is there a term for people who manage the money of dual citizens?

I'm a dual citizen of the United States and Canada. I'm afraid to invest in anything because the tax treaties and laws between the two countries make everything too complicated for me to follow. Even ...
7
votes
5answers
2k views

Tax consequences of a foreign bank account for a US/Canadian citizen

My wife is a Canadian citizen, I am a US citizen. We live in the US, but make frequent trips to Toronto. The problem we face each time we cross the border into Canada is that we have to change our ...
3
votes
1answer
246 views

If I pay taxes on my earnings, would someone also pay taxes on the same earnings if I subcontract them and pay a share?

Forgive the confusing title, but it was the best way that I could explain the following situation briefly. I currently have some contracts for doing IT works with various companies. They pay me as ...
5
votes
3answers
2k views

Should I repay my Home Buyer's Plan (HBP) RRSP loan early, or over the allowed 15 years?

I used my RRSP to purchase my house. It was tax free because I was first a time home buyer. I am wondering if it would be beneficial to put the lump sum back in ASAP or take the 15 years to pay it ...
13
votes
4answers
671 views

Working on a tax free island to make money?

I recently came across a website that was touting the benefits of working in cayman islands. Work for a financial firm, earn well, scuba dive...and..............pay NO taxes. Now, if the people are ...
3
votes
1answer
286 views

Does your employer have to hold back taxes on your paycheque?

I've been looking at ways to increase the amount of liquidity that I have on a day-to-day basis, and notice that I have quite a fair amount of my bi-weekly paycheque going right to taxes that I'm ...
5
votes
2answers
1k views

What Canadian tax is payable on money received (gifted) from a relative in another country?

I have a Canadian and German passport, but I have lived in Canada for 15 years. My grandpa, in Germany, had opened a certain savings account for me from which I will recieve a lot of money from in ...
2
votes
3answers
266 views

Ontario New Home Tax Rebate

I've been doing a lot of research on the new home tax rebate. There is a house we want to buy, listed with a realtor - the seller who owns both the land and the house is a builder (he bought the land ...
3
votes
2answers
465 views

The Canadian dividend tax credit: Why is it that someone can earn a lot in dividends but pay no/little tax?

from this link: http://www.taxtips.ca/glossary.htm#Dividend For an individual with no income other than taxable Canadian dividends which are eligible for the enhanced dividend tax credit, ...