Questions tagged [canada]

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

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6
votes
1answer
340 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 ...
6
votes
1answer
234 views

Why is investment income generated in a corporation taxed at a higher rate than when it is generated for an individual?

I often have a hard time understanding my accountant so I ask others to interpret what he said. I welcome insight from experience gained in any country with similar tax laws (doesn't have to exactly ...
6
votes
1answer
4k views

How to report my revenue from Apple iAds and App Store sales, without an invoice?

For accounting purposes, we need an invoice for accounts receivables, but when you get a payment from Apple for iAd revenue and app sales, how do you issue an invoice ? Are there any specific ...
6
votes
4answers
5k 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 ...
6
votes
2answers
356 views

Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There'...
6
votes
2answers
635 views

What type of investments should be in a TFSA, given its tax-free growth and withdrawal benefits?

What does an optimal TFSA portfolio look like? What type of investments should be in it given its tax-free growth and withdrawal benefits?
6
votes
2answers
246 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 ...
6
votes
3answers
2k views

How do “past due” utility bills affect credit rating?

I received a utility bill which is clearly in error. It claims that a previous payment is "past due", when the bill claiming this is dated before the due date on the supposedly past due payment it ...
6
votes
5answers
2k views

Is it true that Income Tax was created to finance troops for World War I?

I remember hearing that income tax was specifically created to finance the war effort during World War I. Is this true? If so was it originally intended to be a temporary measure?
6
votes
1answer
7k views

RESP withdrawals: What are the eligible/qualified education costs or expenses, other than tuition?

A few years ago, my wife and I started an RESP to help us save for my daughter's eventual post-secondary education. We're doing well with it: we take advantage of the maximum government match, and ...
6
votes
2answers
266 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
2answers
10k 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 ...
6
votes
1answer
1k views
6
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1answer
235 views

Does my mother owe back taxes for 1986?

My parents left Canada in 1986 for India, selling their house, but not closing all their bank accounts. They didn't file taxes for 1986. My father died in 1993, and my mother didn't visit Canada ...
6
votes
1answer
62 views

New Pooled Registered Pension Plan details?

Does anybody have a good summary / commentary on the new Pooled Registered Pension Plans recently passed by the Canadian gov't? http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&...
6
votes
1answer
2k views

As a Canadian Citizen, can I move a 401k into a RRSP in Canada?

I am a Canadian Citizen and was a resident of the US for 11 years. I moved back to Canada recently and am working in Canada. I want to move my 401k to RRSP in Canada. Is this possible? What costs or ...
6
votes
1answer
2k views

Are RRSP investment accounts, in Canada, available to temporary residents?

Is it possible for a temporary (non-citizen) long term (leaving in 2 years) resident in Canada to obtain RRSPs? Is it advisable?
6
votes
4answers
254 views

High mortgage rate and low home prices VS low mortgage and high prices

Currently in Canada we have low mortgage rates and high home prices. I get the vibe from reading different articles that people actually want mortgage rates to go up which would lower the home prices. ...
6
votes
1answer
919 views

Are insurance payouts taxable in Canada?

This is in reference to this question about life insurance but can apply to other insurance payouts. This would definitely affect how much to plan for.
6
votes
1answer
360 views

As a contractor, if my business makes no net profits, do I owe taxes?

Have been working full time, switching to at least part time contract work. I'm looking at starting a company and having all my contract pay go through it. Assuming I'm also working at least part ...
6
votes
2answers
141 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 ...
6
votes
1answer
419 views

Can I get a tax deduction for giving towards my grandchildren's education?

I have 4 Canadian grandchildren. Can I get a charitable tax deduction if I give towards their education?
6
votes
1answer
103 views

Received capital gains dividends from a Canadian mutual fund. Do I need pay tax in Canada?

I have some mutual funds in Canada from BMO. I am a non-resident of Canada. I am U.S.A resident. I recevied capital gains dividends. Do I need to pay capital gains tax in Canada? Or just pay U.S.A.? ...
6
votes
1answer
722 views

What happens to a HELOC after a death?

My situation is as follows: up until a few months ago, my father, mother and I lived in a house (in Canada) which was solely in my mother's name. There is a home equity line of credit associated with ...
6
votes
1answer
1k views

Working remotely from Canada for a US company. How to get paid?

I am a Canadian who just landed a (short-term contract) job working remotely for a US company. Since this happened through a (US) recruiter, my employer would pay the recruiting firm, who would pay me....
6
votes
1answer
2k views

Implications of a Canadian company IPO having a dual TSX/NYSE stock listing?

As an exampe, Shopify will go public this upcoming May 26th, selling shares both on the TSX and the NYSE. What are some of the main implications of this dual IPO, other than the fact that the ...
6
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1answer
2k 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 ...
6
votes
1answer
221 views

In Quebec, what kind of financial assistance might be available to an unemployed single mother with kids?

My husband will be separating from me in a couple of months. I am unemployed and have two kids both under the age of 6. Is there a single mother's compensation? Especially in my situation where I am ...
6
votes
1answer
3k 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 ...
6
votes
1answer
2k views

Can capital gains from employee stock options be transfered to a TFSA to avoid taxes?

In a scenario where, for example: An employee exercised a "same-day-buy-and-sell" operation on his employee stock options. He ends up making a profit / gain of $10K. He already has a yearly salary of ...
6
votes
1answer
424 views

Which non-bank-specific online money management applications work for Canadian banks?

Mint.com has languished for years (over three now) in not supporting Canadian banks. Given that we only have a few, you would think it to be a small amount of work. Update: Mint.com now supports ...
6
votes
1answer
916 views

Who are the consumer credit reporting agencies in Canada?

I'm trying to determine what credit freeze and reporting options are available in Canada. In the United States it seems freezing your credit requires contacting all of the credit bureaus. I have not,...
6
votes
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 ...
6
votes
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; ...
5
votes
4answers
13k views

Can I move my 401k to another country without paying tax penalty?

I might want to move the money in my 401k from US to Canada. I do not work with my previous employer anymore, but now I am self-employed. Can I do this without incurring penalties?
5
votes
3answers
2k views

I just made $50K from selling my house. How should I invest the proceeds?

I just made $50K from selling my house. I need some advice because I'm terribly bad at managing money and I'd like to invest a bit. My bank is harassing me – they want to sell me their product ...
5
votes
3answers
518 views

Is there a Canadian credit card which shows holds?

It is really frustrating not being able to run a tight ship with my money. Neither CIBC nor TD shows them immediately. It is certainly possible because I ran across a Visa gift card which showed them. ...
5
votes
3answers
2k views

In Canada, can a limited corporation be used as an income tax shelter?

I've heard this old chestnut from various people over the years but have never been able to find any solid information on the process and thus, never put it to the test. The claim is that if you plan ...
5
votes
5answers
2k views

Why not pay in full upfront for a car?

I assume the following 3 hypotheses, which doesn't duplicate and instead only narrows https://money.stackexchange.com/a/38838/10763, https://money.stackexchange.com/a/15812, https://money....
5
votes
2answers
429 views

Will there be enough money in the Canada Pension Plan (CPP) to cover baby boomer retirement?

As the leading edge of the baby boomer generation edges into retirement age, is there enough funds in the Canada Pension Plan (CPP) to cover the needs of this populous generation? Do special measures ...
5
votes
3answers
1k views

Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?

The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt). I know if I ...
5
votes
2answers
322 views

Retiring 10 years early; should I withdraw pension fund to invest myself or wait and take defined benefit?

My total cash assets are approx 585k; I have no debt, but neither do I have other assets (ie property, car, etc). I have very low rent and live within my means. My money is held about 1/2 in RSP, the ...
5
votes
2answers
134 views

Does an RRSP loan provide any benefit, vs. simply making monthly RRSP contributions?

While evaluating a short term RRSP loan like this one, the numbers seem good on paper. But: If I need to save $1,000 in tax deductions, I need to put the entire borrowed money into the RRSP before I ...
5
votes
3answers
222 views

What is the best option for repaying student loan?

This is an embarrassing thing for me. Growing up my family believed money is a bad thing that shouldn’t be talked about. I have found this philosophy hasn’t served me well and abandoning it. I ...
5
votes
4answers
1k views

Is my employee stock purchase plan a risk free investment?

My company offers an employee stock purchase plan with two 6 month periods. At the end of the period I buy the company stock at a 15% discount on the lower of the price at the start of the period and ...
5
votes
4answers
1k views

Should I max out my TFSA contribution before any other investments?

I'm still relatively young (I just turned 30), and no debt but mortgage. I'm kind of late to the retirement savings game and still have $15,000+ of contribution room for my TFSA as of this year. As a ...
5
votes
2answers
226 views

Index fund that tracks gold and other commodities

Is there an index fund that tracks the index for precious metals? How about a fund that tracks an index just for gold?(I guess this is not possible) And is there a fund that tracks overall commodities ...
5
votes
1answer
1k views

When is it necessary to apply taxes for web freelancing services in Quebec, Canada?

When is it necessary to apply taxes for web freelancing services in Quebec, Canada?
5
votes
1answer
371 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?
5
votes
2answers
592 views

Can I contribute to my spouse's RRSP to fully take advantage of the Home Buyer's Plan?

My spouse and I plan to eventually use the Home Buyers' Plan when purchasing our first home. If we combine our RRSP's then we can take out $25,000 each to use as a down payment on our first home. I ...