Questions tagged [canada]

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

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1answer
121 views

Form 8843 - Statement for Exempt Individuals - Do I need to complete a closer connection form?

I am a Canadian citizen that has studied and worked in the US over the past 5 years. I am unsure how to complete Part III Questions 11 and 12 on the Form 8843. I was on an F1 from Aug 2010 - May ...
3
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1answer
40 views

Ontario Capital Gains,are profits also part of taxable income?

Say I Sell my investment property house for 500k and bought it for 250k. Leaving me 250k profit. I'd be taxed on 50% of that correct: 250/2 = 125k taxable. and 125k Profit. Now my 125k is taxed ...
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1answer
242 views

How does this scam involving buying a used car cash-only work?

I'm in pursuit of a used car. I came across this 2010 Camry for 4200 CAD. The car is good, I test drove it in the city and on the highway and there are no problems with it as far as I can tell. ...
3
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1answer
2k views

Can you evade tax by getting employment income just in equity, then using this equity as collateral to take out loan? [closed]

I don't get this tax evasion scheme. Can someone explain it? I'm from Toronto, Canada. I don't know if the author had in mind US taxes. Jargo comments on Deutsche Bank and Wall Street banks ...
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3answers
130 views

Why aren't REITs ETFs?

I'm assuming there are no ETF equivalents of REITs in Canada. Correct? Why are REITs income trusts, not ETFs? Why not operate a Real Estate ETF? Gill, Madura. Personal Finance, 4th Canadian Edition ...
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1answer
50 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 ...
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0answers
55 views

Where can I see break-down of total federal and Ontario non-refundable tax credits?

Please see my 63 y.o. Ontarian dad's cash flow.. I screen-shot, but rounded the values from his 2018 Notice of Assessment. Where can I see tax credits broken down? I want see them so that I can ...
6
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1answer
161 views

Is there a general way to prevent fraudulent bank accounts from being opened in your name in Canada?

In the wake of the Desjardins data leak, several of my friends have become aware of fraudulent bank accounts (not credit accounts or lines of credit, to the best of my understanding) being opened in ...
2
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1answer
43 views

Is Pension income a part of my Personal Tax Income

My parents retired, and they will be receiving monthly payments from pension and those things. We live in Ontario. Do these count towards their income tax brackets? Are there other taxes they should ...
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0answers
38 views

Why does strategy with borrowing 35,000 and using Home Buyer's Plan apply to just Canadians in 40% marginal tax bracket?

Why do these Reddit users focus on the "40% marginal tax bracket"? How did they calculate it? Assume that we're in Ontario so that we can work with Ontario's provincial tax rates. 35K at 5% for 90 ...
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1answer
73 views

In one year, what's the maximum I can contribute to RRSP, from past unused contribution room?

My dad is 63 and lives in Ontario.. He maxed out his TFSA. His annual pre-tax income is $50K. Here is a screen-shot of his CRA online account: He never opened a RRSP, thus the $100K must've been ...
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2answers
274 views

At What Point is it Worth Doing Something With Your Money?

I (a Canadian) have never done anything with finances, don't have an income nor any expenses. I have about 20K sitting in a pile in a TD Canada Trust Account due to the government sending HST checks ...
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1answer
93 views

Can I transfer, in 2019, my tuition tax credits from 2009-2015 to my parents who paid all tuition?

From 2009-2015, I was studying in Ontario universities, and made no income. My parents paid all my tuition. I filed my taxes, but didn't know that I could claim tuition tax credits. u/pfc-toss ...
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1answer
72 views

How do Ontarians calculate optimal RRSP contribution?

Pls see my dad in Ontario's facts. He maxed out his TFSA, and his annual pre-tax income (henceforward "APTI") is $50K. CRA website shows his 2019 RRSP deduction limit is $100K. If I understood this ...
7
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1answer
308 views

Ought a 63-year old working hotel employee commence an RRSP?

If I understood Global News, MoneySense, the Wealthy Barber, and Reddit, my dad ought NOT start or contribute to an RRSP! Right? Thanks. Facts He's 63 years old, and has no children under 18. He ...
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0answers
40 views

Can non-citizens sell paper certificated UK stocks?

I inherited BATS shares listed on the LSE. I’m a Canadian citizen, and the shares are paper certificated. I’ve been trying to sell them for a year with no luck. Can I sell them without naturalizing in ...
11
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4answers
5k views

Bigger mortgage downpayment vs. paying extra on the first regular payment?

Assuming there is no fees on paying extra $10k at the time of the first scheduled mortgage payment, what would be better - to put this $10k towards a downpayment or make bigger regular payment? ...
10
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2answers
961 views

Am I responsible for an annual fee on a credit card I never picked up?

I just received a bill for a VISA card at a bank where I'm not a customer. There is just one charge on the card and it is for an annual fee of $120. The card is not actually made out to my name, but ...
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2answers
79 views

Best/Least expensive way to cash a Canadian check in the US?

I live in the US, and I recently took a vacation in Canada. My flight home was oversold, and I was stuck at the airport for several hours. The airline is required to send me a check for 2400 Canadian ...
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3answers
281 views

All my investments goes through the same financial firm. Is that a bad idea?

In the past year, I invested $1k per week in a diversified portfolio through a financial firm. The money belongs to my incorporation. My goal is to invest as much as possible and never use it, ...
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1answer
269 views

How to start investing at a younger age?

I am currently 23. I live in Quebec, Canada and I work full time at $17.31 per hour. My salary will increase 1% to 6% every December. For the time being, my cost of living is relatively low. I ...
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0answers
32 views

Independent Contractor

I am an employee and fall within the first tax income bracket in Nova Scotia. I have recently taken up a contract job as an independent contractor that pays about $150 to $200 per month. I want to ...
6
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1answer
173 views

If your spouse passes away do you lose any tax credits (GST and Trillium Credit) owed to them before they died?

My husband passed away this pass on 17-July-2018. Until he passed away we hadn't filed our income tax for the years 2015, 2016 and 2017. I am wondering if and when I do decide to file our taxes; ...
4
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2answers
268 views

Deferring claim of significant purchase of RRSPs

If I purchase $50,000 of RRSPs this year, I believe that I can defer some of this purchase over the next several years. I could, for example, claim $16,667 on each of my next three tax returns. ...
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2answers
93 views

Deciding on RRSP carryover amount

I'm trying to do a last minute lump-sum RRSP contribution. I have an idea of how much I'd like to contribute/carry forward, but this is my first time making a significant RRSP contribution, so I'd ...
3
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0answers
126 views

Expenses deducted on tax return with no proof. What should I do if I get audited?

I just filed my tax return for the 2018 tax year (NETFILE, with StudioTax). I work 100% at home, and I rent the place from a landlord. According to an agent of the Canada Revenue Agency, I am allowed ...
4
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0answers
409 views

Donating to US versus Canadian charities to maximizing tax benefits

I am a US citizen and I have the option to make my charitable donations in either the US or Canada for the next few years. How do I maximize my tax benefit for a fixed donation size? My ...
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1answer
108 views

Do I have to pay tax on Capital Gained on primary property?

I am a Canadian citizen. I have been worked for a company in Mississauga, Ontario since 2016. Around this time my dad was diagnosed with illness so in March 2016, he added my name to his property in ...
3
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1answer
36 views

How are Canada Pension Plan payroll deductions paid by both employee and the company?

I am thinking on moving to Canada but I want to calculate what my salary would be after taxes. I am using the tax calculator at https://simpletax.ca/calculator but there's still one thing I can't wrap ...
2
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0answers
67 views

Canadian nomad, USD earnings - how to invest/preserve currency

I'm a Canadian tax resident who moves around a lot. Exchanging currency stresses me out so much if I think about it that I basically have just decided to accept volatility. I work online, and am paid ...
2
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2answers
113 views

Any capital gains taxes owed for non-residents selling stock in Canada?

I own stock of a company outside of Canada. Recently, the company was bought out by a Canadian company with newly issued shares listed in Toronto. As a shareholder of the company, I received new ...
3
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4answers
834 views

How can a 'saver' maintain or increase wealth in low interest rate economy?

If low interest rates disadvantage 'savers' what are they supposed to do if they are not inclined to buy and spend? Where should you put your money (instead of it stagnating in low interest rate ...
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0answers
25 views

How does splitting one Canadian Pension Plan payment reduce a household's overall tax bill?

Personal Finance For Canadians For Dummies (2018). p 370. TIP Some couples choose to split one of their CPP or QPP payments as a way to balance their income and reduce their household’s ...
6
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1answer
341 views

Should I pay down mortgage faster or Invest?

I've a appx 450K mortgage left at 2.49% (5 year term with a 25 year mortgage). I've a few options to pay my mortgage faster Increase principal payment amount once/year Change payment frequency from ...
2
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4answers
278 views

Why not “have too much available credit” on your credit card?

A Canadian's Guide to Money-Smart Living (2019) by Kelley Keehn. I don't know her degrees or qualifications. I first read this on p 94, but it looks like the same as p. 98 in 2015 edition that ...
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3answers
1k views

How can I win at haggling when buying a significant household item?

My mom's pain specialist M.D. diagnosed her with severe Low Back Pain and Arthralgia. He recommended buying a soft high-quality mattress. She lives in Toronto Canada. Last month at a Sleep Country ( "...
3
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2answers
241 views

How much of my $5K/yr tuition tax credit ought I transfer to my mom who earned $40K/yr?

From 2009-2015, I was studying in universities, and earned no income. My parents paid all my tuition. We all live in ON. I filed my taxes, but didn't know about claiming tuition tax credits. I would'...
2
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0answers
52 views

Canada Income Tax benefits if family is living outside of Canada

I am working in Toronto, Canada under Work permit. My family is living outside Canada. I am fully taking care of their expenses. Can I get any income tax benefits for the money I am sending to them? ...
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7answers
5k views

Losing Money with Norbert's Gambit

In attempt to avoid the usual 1.5-2% exchange fees levied by brokers, I perform Norbert's gambit: I purchase DLR.TO in CAD (Canadian dollars) from TSX, journal it over to DLR.U.TO, and then sell the ...
2
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2answers
275 views

Are discount brokers freely permitted to deny client orders for any exchange-listed stock or ETF?

If a "no advice" (order execution only) discount broker is a member of a major stock exchange, does that typically obligate the broker to accept client orders for all stocks, ETFs, etc. listed on the ...
4
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1answer
133 views

Write off accrued interest from interest income

My mother purchased a US government bond maturing 2019/04/15. The purchase date was 2018/04/13, so there were 2 interest payments attributed to 2018 (2018/04/15 and 2018/10/15), but the interest ...
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1answer
162 views

At termination, can companies compensate vacation days with vacation pay at less than fair value?

Being let go, I have 15 days vacation accrued. They want to pay: salary × 15 days / 365 days = 4.1% of salary But suppose someone accrues 260 days of vacation, this corresponds to 52 weeks of 5 ...
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1answer
142 views

Is it possible to get a mortgage without income verification in Canada?

For someone who has some sizeable savings but who reported very low income for the past year, is it possible to get approved for a mortgage with, say, 35% down? In a situation when one has to pay $...
2
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1answer
438 views

Does increasing credit limit on corporate card affect personal credit score?

An individual has a corporate credit card under their own name where the company reimburses them for expenses into their personal bank account. Corporate credit card bills are paid by the individual's ...
3
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1answer
296 views

401(k) non resident alien -early withdrawal penalty 10%

I have a 401(k) with over 100 k in it . My question is if my former employer's 401(k) plan does not withhold the 10 % early withdrawal penalty, will I need to pay this with a US tax return ? ...
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0answers
52 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 ...
1
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1answer
41 views

ESPP, expat and CGT in which country (Canada/UK)

I participate in my Canadian company's ESPP whilst living and working in Canada as a permanent resident. I'm moving back to the UK in August and will sell my shares when I'm back in the UK. Will the ...
3
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3answers
971 views

Should I file taxes or Incorperate a personal project?

I have effectively started a small business. The business is an online venture and has already generated a small amount of money through donations/etc. I am currently considering if I want to go ...
27
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5answers
9k views

Why would a home insurer offer a discount based on credit score?

Recently I received a letter from my home insurance company: Thank you for being a Gore Mutual customer. We're working hard to ensure that our products are competitive. And we want to provide ...
3
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0answers
82 views

Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?

I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA. 1) From ...