Questions tagged [canada]

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

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22
votes
12answers
3k views

Is it principled to tip less if a pricey restaurant doesn't accept Visa or Mastercard?

Last month, I spent $230 CAD at a restaurant. Yesterday I spent $150 CAD at another restaurant. Both high-priced restaurants in Toronto accept just cash or debit, no credit. I'm using final prices, ...
1
vote
0answers
40 views
+50

Ontario, Canada rules for tax rates for services

In Canada, various provincial and federal taxes are applied to goods and services. In the event that a tax rate changes, there can often be confusion as to which tax rate to use for services rendered. ...
0
votes
1answer
37 views

What other variables affect optimal contributions to RRSP now?

I already maxed my TFSA. I can't have and don't want kids. I want to create an Excel spread-sheet to work backwards to determine the optimal RRSP contributions now that'll minimize taxes when I start ...
0
votes
1answer
90 views

Savings Question, how to invest

I have about $20,000 just sitting in a TFSA, I do plan to spend it (on a vehicle) in about 12-16 months, so I don't want to lock it away, is there anything better then the TFSA? I am Canadian.
0
votes
1answer
37 views

How can too much clawback tax on OAS benefits be withheld?

Tax Planning for You and Your Family 2019 by KPMG. p 319. 20.3.2 Old Age Security benefits and the OAS clawback OAS benefits are a taxable pension available at age 65. Unlike CPP/QPP ...
0
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0answers
23 views

In Canada how are Distributions taxed?

I'm asking about Distribution, NOT DIVIDEND. Here's an-other article on differences. I live in ON. An example is HMMJ, However, the Horizons Marijuana Life Sciences Index ETF (HMMJ) currently ...
0
votes
0answers
59 views

Does it make more sense to purchase VTI or VUN?

I live in Canada. VTI and VUN are both US total market index funds through Vanguard. VTI is the American version, VUN is the Canadian version. VTI has an MER of 0.04% but the dividends are subject to ...
5
votes
1answer
691 views

What does it mean when 5 year fixed is lower than 5 year variable [duplicate]

For the past 10 years, we've had 2 5-year variable rate mortgages. We have more or less won the bet in the fixed vs. variable game. In the past, the variable was always a lower rate than the fixed. ...
5
votes
4answers
4k views

Is there any benefit to keeping money in a checking account?

I have been getting a lot of "tips" from my bank lately about different ways to save. Things like "Save $1 week 1, $2 week 2", etc or "tax my spending habits". Whenever I see things like this, they ...
1
vote
1answer
26 views

What's an “accountable advance”?

Tax Planning for You and Your Family 2019 by KPMG. p 196. 12.2.3 Allowances and advances for automobile expenses If you receive a reasonable allowance for automobile expenses, the allowance ...
-1
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0answers
35 views

In Canada, can charitable donations never increase your after-tax income?

Note that charitable donations never increase your income-after-tax. I want double-check this. I use a gray horizontal line for every separate Reddit thread. They probably didn't write with Ontarian ...
-1
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0answers
37 views

What's “corporate paid-up capital”?

Tax Planning for You and Your Family 2019 by KPMG. p 113. 7.1.3 Stock dividends A corporation will sometimes pay a stock dividend by issuing new shares to pay the dividend rather than giving ...
-1
votes
0answers
24 views

Why would a small business benefit by disposing of shares early this year rather than later in previous year?

Tax Planning for You and Your Family 2019 by KPMG. p 103. First three paras. If you own shares in a small business, and are considering selling them, or transferring them to a family member, ...
-2
votes
0answers
41 views

Why's it hard to claim losses on Canadian shares as business losses in the future?

Tax Planning for You and Your Family 2019 by KPMG. p 100. If you wish to ensure that your trades on the stock market will always result in capital gains rather than business income, you may file ...
20
votes
2answers
13k views

If you're loaning yourself a mortgage, why must you pay interest? At the bank's posted rate?

I'm addled. You're withdrawing money from your own Registered Retirement Savings Plan(RRSP), and you must repay it. You're not using the approved lender's money at all! So why must you pay interest ...
0
votes
1answer
45 views

In Canada, do Deposit Institutions pay interest on weekends?

I'm Ontarian. Yes or no for Chequing accounts? Savings accounts? Assume withdrawal can be delayed. If the answer is yes, then smarter to withdraw money on Monday 12:01 AM rather than Friday, right? ...
1
vote
1answer
21 views

Where to put Canadian-listed ETF that holds a US-listed ETF of US stocks?

Assume I have just three unused accounts – RRSP ($90 000), TFSA ($63 500 in 2019), and non-registered investment account. I'm Ontarian. I use another example like XUU. Where to put it first? I ...
0
votes
2answers
36 views

What's the “tax refund on RRSP contribution”?

Dan Brtolotti CFP CIM B.A. English University of Waterloo - St. Jerome's University wrote this article. I don't fathom third row. RRSP is taxed at withdrawal. Thus how is tax refunded when you deposit ...
0
votes
0answers
14 views

In a taxed account, why inimical for capital losses to offset high-than-market distributions?

aughhhhh comments on Efficiently Allocating ETFs to RRSP, TFSA, and a Non-Registered Account? First ask why you want to own bonds. Probably because you want their damping effect during a stock ...
4
votes
0answers
49 views

What's wrong with transferring $12,000 from RRSP to RRIF and withdraw $2000/yr 65-71 inclusive? Why doesn't this give you $12000 out RRSP tax-free?

I live in ON. Jim Yih wrote Are You Taking Advantage of the Pension Income Tax Credit? Transfer RRSP to a RRIF. At age 65 transfer $12,000 to a RRIF and take $2000 out per year from age 65 to 71(...
2
votes
0answers
32 views

How much can you have in TFSA without losing any OSAP?

Plz see beneath. Just $3600 for 2019-2020 school year!!?!!? This is too niggling and half-baked! What if student is living away from home? Accomodation and private rent cost way more! What if US or ...
3
votes
0answers
152 views

Will I get trouble with CRA, if I withdraw yearly maximum Capital Gain without paying tax in ON for many years?

Assume I get 0 income and my Capital Gain doesn't fall. I live in ON. Call F the maximum federal ($12069 in 2019), and P the maximum provincial ($10582 in 2019) basic personal amounts. Retirement ...
2
votes
2answers
72 views

MER of an ETF that holds another ETF?

I have an ETF: VFV (VANGUARD S&P 500 INDEX ETF) that has a fee of 0.08%. This ETF is traded in Canada and holds the U.S.-domiciled Vanguard S&P 500 ETF: VOO. This fund has a fee of 0.03%. ...
0
votes
1answer
129 views

How can I scrap the ATM transaction fee of a major bank in Canada, customer for 20 years, from now on?

I am with a major bank in Canada that charges a particular fee for visa credit card and ATM debit card money withdrawal and probably for deposit also. I pay interest for the credit card. I have been ...
0
votes
0answers
82 views

Error wire transfer into intermediary bank [duplicate]

I want to know how many days does it take for a cancelled wire transfer to be reversed into my account.
3
votes
0answers
80 views

Does money spent from lawsuits get reported in tax?

I had the unfortunate experience of taking my landlord to court. We eventually reached a settlement where I got some money. I strongly believe I should have gotten more and have evidence to support ...
1
vote
1answer
83 views

Loan to family member in Canada

I am residing in USA. I am considering loaning USD 50K to my brother in Canada to help him buy a home. Whats the best way to go about this? I read that if its within US its best to do this a loan ...
2
votes
0answers
37 views

Should CRA be paid as soon as tax return is submitted or should I wait for their response?

I just filled my tax return with the CRA. I know that I will owe some money as I worked as a contractor without tax taken off. Should I wait for the CRA to assess my return and tell me if I made any ...
7
votes
3answers
276 views

When estimating what portion of home is used for work, how could government verify you're telling the truth?

I work as an independent contractor and sometimes do a little work from home. I can write of part of my home rent for working from home. I am trying my best to estimate accurately for what percent of ...
1
vote
1answer
109 views

How do I sell or transfer forgotten about shares

I realized today in a moment of lucidity that I have outstanding shares from an employee share ownership plan from my previous company, Loblaws Canada. The shares are on a site called "Computershare",...
2
votes
2answers
195 views

How do vehicle loan transfers work?

I'm going to buy a car from a private seller. The seller bought this car from Dealer X couple years ago. Now, the seller wants to buy a new car from Dealer N. The seller didn't like Dealer N's trade ...
2
votes
1answer
93 views

Can you legally increase your TFSA contribution room over the government's provided maximum ($63 500 in 2019)?

I saw this idea in Reddit comments by u/differing: I often wish I invested early in the weed stock bubble in my TFSA, not so much for the returns but more to supercharge my TFSA room and transition ...
1
vote
0answers
39 views

Buying certified Canadian checks or money orders online from the US?

I live in the US and I need to send an application to a consulate in Canada. The consulate only accepts certified checks or money orders issued by Canadian institutions in Canadian dollars and cannot ...
2
votes
1answer
105 views

Principal residence exemption after the first house?

I'm trying to think through a situation for my brother where he co-owns two homes, one of which is with me which he wants to gift to me. I'm not sure how principal residence exemption works on his ...
0
votes
1answer
127 views

Are friends and family discounts or employee discounts taxable?

I recently read this article which says in Canada: "barter transactions are only taxable when the goods or services you're giving up are of the kind generally provided by you in the course of ...
0
votes
2answers
118 views

Benefits for women in Ontario

Im unemployed i apply for a jobs but not luckly call for an interview yet. I will be separating soon with my husband . I lived in Eastern Ontario near Renfrew. Not much jobs around here i wanted to-...
0
votes
1answer
86 views

Efficient Canada investment account after maxing out TFSA that is not RRSP?

What kind of investment accounts in Canada are tax-efficient and allow holding U.S. stocks (Amazon, Google, etc.)? I have maxed out my TFSA, and would prefer not to lock money in retirement-inclined ...
5
votes
1answer
213 views

Does a cash back mortgage at a higher rate with the cash immediately applied to the principal make financial sense?

A mortgage advisor was trying to sell me on cash back mortgage. For most clients he said they use it to pay down debt at a higher interest rate or to buy the essentials for a first home. This is not ...
3
votes
1answer
134 views

Spouse Cosigning

My wife and I currently own a home and finance two cars. We each have one car completely in our name and are co-borrowers on the house. I am about to trade in my car, and the interest rate will be ...
3
votes
1answer
216 views

Choose students or working adults with low credit as tenants?

Currently I am trying to pick the tenants for my condo in downtown Toronto ($2400 a month). There are two options: Two international students from university of Toronto, but they are only willing to ...
0
votes
2answers
522 views

Why don't all banks at least OFFER to combine their chequing and savings accounts? [closed]

Manulife Bank combines chequing and savings — see beneath. But Meridian Credit Union, Simplii don't. I have bank accounts at just these financial institutions. LMK if there are others like Manulife. ...
1
vote
1answer
188 views

Buying a house with credit line and getting a mortgage later

We are considering buying a house for about $150-160 thousand. We recently moved, and my wife has been on maternity leave benefits for a year now. So, proof of income is basically non-existent. We ...
-1
votes
5answers
1k views

What's the lowest risk highest reward I can invest in for 5 years?

Good day; Canadian here, 23. I'm looking to place money (at a rate of 100$-200$ per month) into savings, for 5 years (locked or not). I don't have a "specific" plan in 5 years. I just need to have ...
3
votes
3answers
460 views

The balance between Renting and Buying

My girlfriend and I are spit-balling the idea of buying a house. We've heard pros and cons for mortgages; you're putting your money into an investment vs you're paying far more than you anticipate due ...
3
votes
0answers
107 views

Is there a way to transfer a cultural donation tax receipt? (Canada)

Canada specific question. My father is planning on making a cultural donation to a museum. He will receive a 100K tax receipt for the donation. My marginal tax rate is significantly higher than his, ...
16
votes
4answers
11k views

Minimize taxes now that I earn more

Background I recently received a hefty promotion for $350k (plus stocks and bonuses) with the same company. Now that I can finally start to pay down my debt, I'm not so happy that suddenly 45% of my ...
1
vote
0answers
65 views

How can I quickly find Merchant Category Codes in Canada?

Reddit post referred http://125plan.com/ResourceCenter/doc/AD/MerchantCategoryCodes.pdf, but this URL is broken. There are two issues. Thus I need two informations? What is each merchant's MCC? My ...
1
vote
1answer
44 views

Why does XMM's performance differ significantly from its benchmark index?

XMM is a Canadian-listed iShares ETF that tracks the MSCI Emerging Markets Minimum Volatility Index. Its holdings are 99% EEMV, the US-listed version of the same ETF. While EEMV tracks its index ...
63
votes
2answers
15k views

I won a car in a poker game. How is that taxed in Canada?

For the sake of title transfer and taxes, is this a gift or a sale? This was a private game. We both tossed our keys into the pot. I won and the vehicle is now sitting on my driveway. I live in ...
0
votes
0answers
42 views

Removing an incorrect collection record from Canadian credit profile

A gym in Canada did not cancel my account and suddenly claims that I owe them money for almost two years, despite the fact that I never signed an agreement with them (I signed it with a different ...