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14 votes
Accepted

How is Canadian capital gains tax calculated when I trade exclusively in USD?

It doesn't matter what currency you trade in or barter, if you liquidated a position - you recognize the gain. See the CRA guidance here. To handle USD transactions, use this CRA guidance on currency ...
littleadv's user avatar
  • 177k
10 votes
Accepted

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

A few key points: (1) Don't try to justify to yourself not reporting income to the CRA. If you have an obligation, file it, whether or not you expect to be caught for failure to file. (2) If the ...
Grade 'Eh' Bacon's user avatar
6 votes
Accepted

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

You would be very well advised to consult with an actual lawyer on this matter. For tax purposes, if your T4s are inaccurate and you cannot get accurate ones, Intuit recommends filing your tax return ...
Magua's user avatar
  • 5,097
5 votes

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

There is no penalty for filing a tax form late in Canada if you do not owe any taxes. The penalties are all in terms of percentages of the taxes you owe. So if he genuinely never earned more than the ...
DJClayworth's user avatar
  • 33.6k
4 votes
Accepted

In a Canadian TFSA, does interest earned within the account count toward the contribution limit?

Just the principal contribution counts towards the limit. In your example, if you contribute 30,000 and you earn 20,000, only the 30,000 counts. To find out exactly how much room you have, you can ...
John Cruz's user avatar
3 votes

Gift amount allowed for directors in a company in Canada

There is no special gift tax in Canada. Cash or near-cash gifts and awards are fully taxable as employment income. Presumably, the limit is the amount of cash you've got.
Ian MacDonald's user avatar
3 votes
Accepted

Deducting your own rent you incurred while renting out your own place

Are you allowed to deduct the $1000 from $1400? No, you can only deduct from the $1,400 of rental income those expenses that are related to the rental activity. If paying a mortgage you could deduct ...
Hart CO's user avatar
  • 70.5k
3 votes

Canada - Is a business or website a depreciable property

No. A business may have depreciable assets but is not itself a depreciable asset. A business is an investment.
Chris W. Rea's user avatar
  • 31.7k
3 votes

How are dividends on US stocks treated by the CRA?

IMPORTANT NOTE: Total Ordinary Dividends (Box 1a) includes Qualified Dividends (Box 1b). So don't sum them. Your income for Canadian tax purposes is the Total Ordinary Dividends only. Qualified ...
velvetmonster's user avatar
3 votes
Accepted

What happens if I don't claim all installment payments on my Canadian income tax return?

Regardless of the hypothetical chance at penalty for false statement [which I find quite unlikely to even cross an agent's mind], you are setting yourself up for a headache. Any difference between ...
Grade 'Eh' Bacon's user avatar
2 votes

Accumulated NRE balance before acquiring Canadian Permanent Residence

This is a typical question from someone from India where presumably there is a wealth tax, levied on assets, as opposed to income tax which is levied on income. Many countries do not have a wealth ...
Dilip Sarwate's user avatar
2 votes

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

Per this answer, unless you can get a W2 for the scholarship, the IRS seems to regard the scholarship as unearned income. This would mean that Form 2555 is irrelevant for this scholarship, regardless ...
David's user avatar
  • 557
2 votes
Accepted

How can portion of cellphone bill be estimated for work?

I'll give you the practical answer my tax advisor gave me. First off, it's not about how much you use your phone, its about what fractionof the charges are work related. Second, as long as your ...
DJClayworth's user avatar
  • 33.6k
2 votes

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

There is a formula to see how much to withhold from each of your cheques. It's basically "how much tax you're likely to pay, divided by number of paycheques a year." When you fill out the TD1 you ...
Kate Gregory's user avatar
  • 13.4k
2 votes

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

If you write a very sympathetic letter to the CRA explaining your circumstances, with a specific request to waive the interest on non-payment, with proof that payment of the balance owing has already ...
Grade 'Eh' Bacon's user avatar
2 votes
Accepted

Canada Tax work space in the home expenses with no income (T2200)

Your reading of the line is correct. The two lines after the one you quote reinforce the statement. However you can get round this very simply by having your business pay you a salary. The salary is ...
DJClayworth's user avatar
  • 33.6k
2 votes

Are friends and family discounts or employee discounts taxable?

It is not taxable, because the transaction is not a barter transaction. The discount is not offered in exchange for a specific thing like an amount of work. It is offered to someone with a specific ...
DJClayworth's user avatar
  • 33.6k
2 votes
Accepted

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

Yes, it is better to take depreciation most of the time, but not quite as much as you imply. Keep in mind the rules of depreciation in Canada: Depreciation on rental properties reduces your rental ...
Grade 'Eh' Bacon's user avatar
2 votes

How do I contact the IRS about my tax return from a non-US phone number?

Call the non-1800 number. As of 16 June 2024, that is Tel: 267-941-1000 (not toll-free) I found this here: https://www.irs.gov/help/contact-my-local-office-internationally
Peter W's user avatar
  • 121
2 votes
Accepted

Payments to CRA don't count toward your balance with CRA until you file your taxes?

Most likely you can rectify this situation. First, call the CRA's public number - might have to wait a while on hold - oh well! See their number here: 1-800-959-8281 https://www.canada.ca/en/revenue-...
Grade 'Eh' Bacon's user avatar
2 votes
Accepted

PST Canada on software development to be used by BC company

I used to develop custom software for many companies in BC and never charged PST. In general you must charge PST if you sell software that you own. However there are a few exemptions. If you develop ...
DJ.'s user avatar
  • 161
1 vote

What happens if I don't claim all installment payments on my Canadian income tax return?

In the US, the answer would be that it's best to report what you actually paid. The IRS here knows what is paid, anyway, and the refund etc.. will take place. But you stating a different amount paid ...
C.S.'s user avatar
  • 715
1 vote

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

This is from the exact source you quoted: Meal and vehicle rates used to calculate travel expenses for 2020 and previous years Meal expenses If you choose the detailed method to calculate meal ...
mhoran_psprep's user avatar
1 vote

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

You need to commit to doing things the right way from the start, or else strongly consider whether you are able to do them at all. If you go down the wrong path, there are some mistakes that no amount ...
Grade 'Eh' Bacon's user avatar
1 vote

I'm being asked for installment tax payments, though I'm a salaried employee. How do I make the notices stop?

Due to COVID, you may not be able to do anything. I was able to fix a similar situation by making an appointment and showing up in person It's likely an issue where they are both short-staff and ...
sevensevens's user avatar
  • 4,099
1 vote

Canada: province of residence on December 31 for emigrants

I think you're overthinking probably the simplest part of the whole problem. The first Ufile quote does not disagree with the CRA quote. Nor does the second alter things. On the day you left you ...
C'est Moi's user avatar
  • 299
1 vote

Filing taxes for Canada after becoming non-resident

Does the income from the rental of your property mean you are still a resident of Canada for tax purposes? In itself, possibly yes. The property ownership possibly more so. You might want to read ...
C'est Moi's user avatar
  • 299
1 vote

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

A Lump-Sum payment is what it sounds like. A single payment of money, typically a bonus, or as mentioned there, payout of unused vacation, perhaps severance pay, etc. The point is that you might want ...
Grade 'Eh' Bacon's user avatar
1 vote
Accepted

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

You are correct that as of 2019, the total room for contributions, for someone who has never contributed, is $63,500. If someone contributed right from the beginning and invested cautiously, you'd ...
ChrisInEdmonton's user avatar
1 vote

Employment travel expense tax deduction

In this context, the client's building is your employer's "place of business". If you have a regular work location, you can't claim travel expenses to that location. If you are assigned guard duties ...
Acccumulation's user avatar

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