Questions tagged [canada-revenue-agency]

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Is a depreciation claim on a rental property basically always worth it in Canada, given stable income?

As I understand it, in Canada (unlike the US) there is some freedom in how much depreciation expense you can claim for a rental property every year, from 0 all the way up to 4% of the yet-...
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Canadian Spouse wants to send money to American wife - Tax problems?

Looking for some help please. I am a Canadian citizen who is married to an American citizen. I want to send my wife approx 50,000 USD urgently. I have no status in USA, and she has no status in Canada....
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3 votes
1 answer
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Is the RRSP Contribution period 12 months or 14 months?

Assuming a clean slate (i.e. no carry-forward contribution room) I always thought the one could make their RRSP contribution any time within the calendar year + 60 days after the end of the year. If ...
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1 vote
1 answer
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How much must one pay tax in Canada if received income from Switzerland?

I am a Canadian Citizen, who lived and worked in Switzerland for a full year. During that time, my only source of income was the company I was working for there. Swiss government deducted a particular ...
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8 votes
1 answer
217 views

Does Canada respect the tax-free status of National Savings certificates for residents who left the UK?

I know Canada and the UK have a tax treaty that is designed to prevent double-taxation. But I don't know if it extends to honouring the tax-free status of government-issued savings certificates. ...
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2 answers
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What happens if I don't claim all installment payments on my Canadian income tax return?

The Canadian income tax return line 47600 is for "tax paid by installments". Assuming I overpaid, if I enter less than the amount I actually paid (making the total owed or refunded be zero), ...
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1 vote
1 answer
127 views

Canadian Taxes: Can I claim the full flat rate (currently $23) for a meal even if the meal costs less?

Here's the link to the CRA website but it doesn't seem to specify this. It seems to say $23 but I am not clear on this and it would seem odd to me to claim $23 for a $10 meal. Thanks in advance. https:...
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Paying tax on rental property in UK as a Canadian resident

We left the UK in 2013 and have rented our apartment to friends and family ever since. We make almost no money from the rental, it barely covers costs and have had to pay out for repairs since we have ...
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0 votes
2 answers
513 views

What are the risks for a Canadian opening a Delaware corporation?

I am a Canadian, living in Canada, born in Canada to one Canadian and one Canadian/American parent, which makes me an American "Person". This means I am responsible for filing and paying ...
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  • 109
2 votes
1 answer
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I'm being asked for installment tax payments, though I'm a salaried employee. How do I make the notices stop?

I'm in Canada. For the past several years, I worked as a freelance contractor. Since January, I have held a full-time position. I'm certain that I don't owe any income tax. My pay is subject to hefty ...
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  • 306
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1 answer
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Canada: province of residence on December 31 for emigrants

Page 1 of the Canadian T1 asks, "Enter your province or territory of residence on December 31, 2019." If I emigrated from Canada during 2019, what do I enter, and why? Specifically, are there ...
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1 answer
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Received lump sum payments for OAS, GIS application (for last 3 years) with one T4 slip in 2019. How can we still qualify for "refundable tax credit"

My uncle & aunt in Canada applied for their OAS (Old age security) & GIS (Guaranteed Income Supplement) & Allowance payments in January 2017 and they were qualified to receive all benefits ...
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0 votes
1 answer
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Filing taxes for Canada after becoming non-resident

I left Canada for SE Asia in January 2020, and this will be first year that I'm filing to the CRA from outside of the country, so there are a few things that are unclear to me. I'll probably talk to ...
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5 votes
1 answer
97 views

Will CRA suspect, if you never filed and now retroactively files taxes?

Someone in family employed for past 15 years, but his income never outstripped ON's Basic Personal Amount. It's $13,229 in 2020 He just found today if even though he never had paid any tax, filing ...
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2 votes
0 answers
54 views

Revenue Recognition, Foriegn Currency, and Exchange Rates

I live in Canada, and run a small hobby website (under a sole proprietorship) which earns advertising revenue from various sources. Some of that is paid in CAD, some in USD, and some in EUR, etc. My ...
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2 votes
1 answer
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Canada Tax work space in the home expenses with no income (T2200)

I'm trying to assess if I can claim on the work space in the home when I'm not getting income from my company. There's a line that makes it seem like I cannot, though I might be reading it wrong. ...
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0 votes
1 answer
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Gift amount allowed for directors in a company in Canada

What is the maximum amount can a small business owner give a director in their corporation as a gift? We are in Canada.
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1 vote
1 answer
176 views

What does it mean to reduce tax on Lump Sum payments, rather than Salary?

See screenshot from the CRA T1213. In requesting to reduce the tax withholding from an employment payment, you can select either 'Lump sum' or 'Salary'. What does "Lump sum" mean? How is it different ...
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3 votes
0 answers
166 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 ...
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3 votes
0 answers
94 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 ...
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2 votes
1 answer
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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 ...
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1 vote
0 answers
294 views

Is it possible to export GIFI from QuickBooks Online?

I use QuickBooks Online for my business transactions. Now I need to do corporation tax return and I want to use UFileT2 for this. So I need to import data to Ufile. For import I need to have GIFI ...
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0 votes
1 answer
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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 ...
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3 votes
0 answers
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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, ...
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4 votes
1 answer
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Employment travel expense tax deduction

I am currently located in Ontario, Canada. I work full time as a security guard and am required to regularly secure a client's building. According to the Canadian Revenue Agency link here, anyone ...
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0 votes
1 answer
100 views

How do I find out what are the min and max withholdings from each paycheque?

Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p 86. Emboldenings are mine. Taxes Paid on Earned Income Your income is subject to personal income taxes, which are taxes imposed on income ...
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1 vote
0 answers
333 views

Can GST tax input credits be claimed for Meals and Entertainment which are 100% deductible for income purposes?

Typical meals-and-entertainment operating expenses for business are limited to a 50% deductible towards income calculation. There are exceptions. The rules listed by the CRA allow higher percentage to ...
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0 votes
1 answer
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Deducting your own rent you incurred while renting out your own place

Person X wants to earn some extra cash They rent out their condo for $1400 a month. They need somewhere to live now, so they rent a basement suite for $1000 a month Now they make $400 a month profit ...
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1 vote
0 answers
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Made a mistake reporting total income on T1 tax forms

This is a bit embarrassing but apparently, I made a mistake on my income tax return. In particular, the "total income field". In my first tax return(2017), I thought this was "monthly income", but ...
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2 votes
1 answer
395 views

Can the CRA peek into the amount of a Canadian bank account forthwith?

I mean without any search warrants or court orders. I ask because for the 2018 tax year, my brother in Grade 12 earned a total income of $500 CAD from only interest. The bank issued a T5 statement ...
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1 vote
0 answers
62 views

What type of trading is taxable in a TFSA investment acount?

I always assumed that capital gains in TFSA is non-taxable until I read that people who use TFSA investment account for day trading are starting to being audited by the CRA. So, what types of ...
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1 vote
0 answers
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CRA showing installments payable for 2019 even if I am getting a refund

When I filed my 2018 tax returns in Ontario, it shows that I am getting a refund; but then it hows Total instalment payable in 2019: XXX $. If I don't owe any taxes in 2018, why does it show ...
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2 votes
0 answers
58 views

How can I notify the CRA of intent to contribute to an RRSP?

I currently have an RRSP through work that I contribute to. However, the amount is significantly smaller than my annual limit. I have a self-managed RRSP separately and contribute sizable amounts. ...
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3 votes
1 answer
112 views

Is it just for the CRA to charge interest on a notice of collection dated one month ago, but that they never mailed?

My dad is old, computer-illiterate, and needs a wheelchair. On Feb. 20 2019, he received by mail the CRA's Notice of collection that "calculated additional arrears interest of $30" on "your notice of ...
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1 vote
1 answer
172 views

Self-employed: claim CPP for self on Line 9060 of T2125?

In Canada, self-employed individuals have to contribute more to the Canada Pension Plan (CPP): we have to pay both the employee and employer amount. Whereas employees just pay their employee amount ...
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2 votes
1 answer
104 views

How can portion of cellphone bill be estimated for work?

First off I'm very new to this so some of my questions may be silly. I worked for several companies that issued me a T4A which means I need to fill out a T2125 with business expenses. To my ...
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  • 224
3 votes
1 answer
206 views

Deposit shares in TFSA before capital gain that exceeds contribution limit

I find myself in an interesting position right now. I bought into a private placement and my escrow will be ending in a couple weeks. The kicker is that, if I were to deposit the shares into my TFSA (...
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7 votes
1 answer
547 views

Moved to Canada for Grad School, Getting Heavily Taxed in U.S

I'm about to file my U.S. tax return for 2017. In August of 2017, I moved to Canada from the U.S. for graduate school (I am a U.S. citizen). I was on a vacation during April 15th, 2018 and quickly ...
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0 votes
2 answers
200 views

Can I get a full-time job in Germany but ask the German company to sign contract with my own corporate in Canada instead of myself?

I found a full-time job and I am moving to Germany. I've established a corporate in Canada and did some consultant job through it. Is it possible for the Germany company to sign the contract with my ...
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0 votes
1 answer
52 views

Canada - Is a business or website a depreciable property

I'm considering buying a small online business. Is it a depreciable asset, and what class of asset?
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3 votes
0 answers
91 views

Setting up a personal loan, how do I report to CRA?

I am about to make a simple loan to a family member. I have a contract written up, and a payment schedule that we will both sign as well, along with a witness. While the interest rate I am charging ...
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2 votes
1 answer
114 views

Canada: Taxes for income generated from pre-immigration work

I called the CRA many times regarding my question but I wasn't able to get an answer and they kept redirecting me to different people and departments. I am now a PR in Canada, Before coming to this ...
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2 votes
1 answer
76 views

Accumulated NRE balance before acquiring Canadian Permanent Residence

I am an Indian national working in Singapore for past 15 years as Permanent Resident. Recently got Canadian PR. I have a huge amount of S$ in my Singapore CPF account and as Fixed deposits in India ...
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3 votes
1 answer
96 views

How are dividends on US stocks treated by the CRA?

As an American living in Canada I have some stocks in a US account and they paid dividends this year. On the 1099DIV there are values for boxes: 1a. Total Ordinary Dividends 1b. Qualified Dividends ...
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6 votes
2 answers
289 views

Are you required to pay the full tax on income if your employer doesn't pay what they claim to?

About 6-7 months ago, a friend of mine got a job with the Canadian Government at an hourly rate. However, due to the Phoenix system debacle, he wasn't being paid for his work. This problem has ...
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1 vote
1 answer
425 views

Does the CRA reprieve those who have to commute for work?

Suppose that for some reason (family connections, unaffordability, ...) someone lives in a town a train ride away from one of Canada's expensive cities (Toronto, Vanvouver). He makes most or all of ...
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1 vote
0 answers
45 views

Canadian income tax for foreign worker who moved back home during 2016

I'm an Australian who lived in Canada (specifically Saskatchewan) for two years, working at a university. I moved back to Australia on December 13th 2016 (when my contract ended). For my 2015 tax ...
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1 vote
0 answers
1k views

Is forex spread betting legal and/or taxed in Canada?

I have some questions regarding forex spread betting in Canada. 1) Is spread betting legal in Canada? I have found a few unofficial sources that say spread betting is legal in Canada, however I was ...
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1 vote
0 answers
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Do part-time courses count as tuition for tax purposes for a work permit holder?

My wife is not a Canadian citizen. As her permanent residence application is in process, she has been given a 2-year open work permit, and she used it to work during the 2016 tax year. Her conditions ...
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0 votes
1 answer
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Paying taxes on an inherited Canadian TFSA? (Successor holder case)

I read this interesting article about Questions about TFSA and I contrasted the information with CRA's website about successor holder. As far as I understood, when the original holder's TFSA pass ...
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