Search found 1853 matches

by DavidR
03 Mar 2024 14:09
Forum: Taxing Situations
Topic: Delayed tax statement - MF in a cash account
Replies: 20
Views: 717

Re: Delayed tax statement - MF in a cash account

HardWorker wrote: 03 Mar 2024 13:27 Speaking of planning ahead. A personal tax filing can be held off until April, but what about someone with a CCPC who wants to invest in ETFs inside the corporation?

Corporate taxes owing are due 3 months after fiscal year end. So if someone's year end is Dec 31st, and these tax forms don't get sent out until the end of March, said person will be late sending the tax owing. I know you don't have to file until 6 months after fiscal year end, but taxes for small corps are due 3 months after year end. Would someone just over estimate the taxes owing, pay it, and rectify it later after filing the returns?
YES, pay a little extra
by DavidR
02 Mar 2024 09:51
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44352

Re: New T3 requirements for joint accounts [that might be bare trusts]

It really seems to me that these joint accounts were caught inadvertently and various lawyers are going to town drumming up new business in order to help hapless Seniors and their kids meet the confusing (it’s taken aver 100 posts in this thread to try to figure it out) requirements? I find it surprising that the financial press don't point readers to the fact that, among others, registered accounts and accounts <$50000 do not need to file. That likely "pardons" the vast majority of filers who will struggle with this See #2.2 and #2.3 https://www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return/new-trust-reporting-requirements-t3-filed-tax-years-ending-december-2023.html#toc2 edit: typo The example at the b...
by DavidR
28 Feb 2024 17:46
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44352

Re: New T3 requirements for joint accounts [that might be bare trusts]

Another perspective from a tax partner (lawyer or accountant I presume): https://www.bnnbloomberg.ca/new-tax-reporting-requirements-for-bare-trusts-not-easy-to-file-expert-1.2033896 The tax partner says/implies that for a bare trust to exist, the trustee must act as an agent for the beneficial owner and in other words is managing the account for the true owner. I conclude that if the joint owner is passive and is only on title for a right of survivorship, there would be no bare trust arrangement. If you are managing a joint account for an elderly parent, then that would appear to be a bare trust and subject to T3 reporting if over $50,000. Forgive me if this sounds like a silly question, but aren't all stated joint account holders "tr...
by DavidR
28 Dec 2023 11:38
Forum: Now Hear This!
Topic: Introduce Yourself
Replies: 558
Views: 80855

Re: Introduce Yourself

Welcome Steve!
by DavidR
23 Nov 2023 09:56
Forum: Taxing Situations
Topic: Tax Instalments
Replies: 940
Views: 103713

Re: Tax Instalments

cardhu wrote: 22 Nov 2023 21:21 Missed this one …
DavidR wrote:If CRA sent an instalment reminder for $xxx due Sept 15, and you made the payment on Nov 15, then they would charge you 2 months of instalment interest on $xxx.
Not necessarily … if $xxx was too high an amount, based on prior year’s filing, and this year’s income will be lower, then they’d only charge instalment interest on whatever the installment amount ought to have been. They don't charge instalment interest on amounts you were never obligated to pay in the first place.
You are correct of course. I am sure it has been said before in this long thread, and will need to be repeated again from time to time.
by DavidR
20 Nov 2023 10:01
Forum: Taxing Situations
Topic: Tax Instalments
Replies: 940
Views: 103713

Re: Tax Instalments

scorpionman wrote: 20 Nov 2023 03:27 Is interested charged for entire year until your payment is made if you owed installments or just since the notice says you must pay, but didn't..in my case September first instalment?
If CRA sent an instalment reminder for $xxx due Sept 15, and you made the payment on Nov 15, then they would charge you 2 months of instalment interest on $xxx.
by DavidR
02 Nov 2023 15:12
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First Home Savings Account (FHSA)
Replies: 116
Views: 12865

Re: First Home Savings Account (FHSA)

Asking whether I'm reading the rules correctly because I can't find anything directly on point ... <Snip> 2. John wants to open an FHSA at another financial institution that offers better investment options. AFAICT this is forbidden. Do I have this right? Fidelity Canada https://www.fidelity.ca/en/investments/investment-accounts/fhsa/?gclid=CjwKCAjwkY2qBhBDEiwAoQXK5UI-BOq7h5X4lwwR3lv5fGgh-BRbvX86GW6gV3a7tGh03r5xt0FlSBoCZxsQAvD_BwE&ef_id=CjwKCAjwkY2qBhBDEiwAoQXK5UI-BOq7h5X4lwwR3lv5fGgh-BRbvX86GW6gV3a7tGh03r5xt0FlSBoCZxsQAvD_BwE:G:s&s_kwcid=AL!10784!3!649139314533!p!!g!!first%20home%20savings%20account!19724707431!148001862444&gad=1 says "It is possible to hold more than one FHSA, but the total contribution amount to all FHS...
by DavidR
01 Nov 2023 11:09
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First Home Savings Account (FHSA)
Replies: 116
Views: 12865

Re: First Home Savings Account (FHSA)

pmj wrote: 01 Nov 2023 10:16
Park wrote: 31 Oct 2023 09:37 My plan was to invest in the e series of TD Bank's index funds, specifically their Canadian index fund. But the rep told me that the e series aren't available in the FHSA - only the higher cost i series is available.
IIRC, e-series funds became unavailable in TD Bank MF accounts "a few years ago". That's system-wide, not just FHSAs.
IIRC, the 'problem' with e-funds is you can't buy them in a branch? And right now you have to use a TD branch for an FHSA..
by DavidR
07 Oct 2023 10:22
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First Home Savings Account (FHSA)
Replies: 116
Views: 12865

Re: First Home Savings Account (FHSA)

My daughter has her TFSA at TDDI. I too find it disappointing that TDDI is not ready with FHSA accounts yet.
I'll suggest that my dtr open an FHSA at a branch of TD Bank, and invest in TD Mutual funds.
Yes they are retail funds with higher MERs, but they will be easy to transfer to a TDDI FHSA account next year, and then replace the mutual funds with ETF(s).
by DavidR
15 Sep 2023 11:39
Forum: Taxing Situations
Topic: Starting up a Sole Proprietary
Replies: 14
Views: 1082

Re: Starting up a Sole Proprietary

jaime wrote: 15 Sep 2023 11:35 So I don't need to do anything beforehand? I just fill out T2515 when I'm filing my personal taxes, reporting all loss/expenses.

Do I just leave the business name and business number fields blank?
Yes leave BN field blank. (FYI, taxpayers reporting sales > $30,000 on their T2125 forms but no BN will be eventually be contacted by CRA, but those far below the threshold should be fine.)
You could put your own name for business name
by DavidR
04 Aug 2023 16:49
Forum: Community Centre
Topic: Dual USA/Canadian citizen thinking of moving to Canada to start a family - soliciting feedback!
Replies: 36
Views: 1803

Re: Dual USA/Canadian citizen thinking of moving to Canada to start a family - soliciting feedback!

Pros Taxes - Investment taxes seem to be lower in BC as compared to CA. Example - for someone making or retiring on $50k USD in both countries would pay $3082 in CA (~6.2%) and $1702.61 in BC (~3.4%). Someone working in our profession making the 90% percentile is ~410k in CA, would have investment tax at 33% (capital gains)/~48% (dividends). That same person in BC would likely make ~180k and have investment tax at ~23%. I'm not sure you have the taxes right in Canada. Maybe you are looking at Provincial income taxes only and leaving out the Federal income tax? 1. Retiree in BC with $50,000 CAD pension income will pay tax, let's assume covered by tax deducted at source. Add $10,000 of investment income on top of the pension income and the m...
by DavidR
28 Jul 2023 13:43
Forum: Taxing Situations
Topic: Why am I getting advanced Canada worker's benefit?
Replies: 5
Views: 820

Re: Why am I getting advanced Canada worker's benefit?

JessiWan wrote: 28 Jul 2023 11:15 I didn't apply for it, so why did the CRA give me one advanced payment?

Also, the Canada worker's benefit is calculated based on one's income, however this year I have very little income, so I shouldn't qualify for this benefit at all. Does this mean that come tax-filing time next year, the CRA is gonna realize that, and ask me to pay this money back?

Thanks.
see here https://www.canada.ca/en/department-fin ... ments.html
by DavidR
28 Jul 2023 13:41
Forum: Taxing Situations
Topic: Finding the most accurate TFSA contribution room
Replies: 11
Views: 732

Re: Finding the most accurate TFSA contribution room

cardhu wrote: 28 Jul 2023 13:02
SQRT wrote: I don’t even bother to try to figure out the CRA figures. I know mine are correct. Never an issue.
Likewise … I have no idea (nor do I care) what CRA thinks my numbers are … mine are correct.
Mine are correct too - but it can be worth checking CRA's numbers from time to time? One year Tangerine did not report a TFSA withdrawal to CRA so CRA calculations were wrong.
by DavidR
28 Jul 2023 13:36
Forum: Retirement, Pensions and Peace of Mind
Topic: OAS amount at age 65 .
Replies: 23
Views: 2079

Re: OAS amount at age 65 .

Zipper wrote: 28 Jul 2023 11:15 I checked my T4A(OAS) for 2022.
Taxable pension $8335.44. Income tax deducted $203.52.
Possibly it was 'recovery tax' if you were slightly above the OAS clawback threshold in 2020 or 2021
by DavidR
23 Jul 2023 20:41
Forum: Community Centre
Topic: RIP Shakespeare [2023]
Replies: 29
Views: 2535

Re: RIP Shakespeare [2023]

Rest in peace, Keith
by DavidR
27 May 2023 17:34
Forum: Taxing Situations
Topic: JTWROS & Capital Gains/Deemed Dispostion?
Replies: 2
Views: 384

Re: JTWROS & Capital Gains/Deemed Dispostion?

Yes. As I think you are aware, the 'normal' treatment of course is to roll the 500 shares to the surviving spouse at cost, with no gain.
If you don't want this treatment, you have to make an election
https://www.google.com/search?q=elect+o ... e&ie=UTF-8
by DavidR
26 Apr 2023 13:05
Forum: Taxing Situations
Topic: Question about instalments
Replies: 54
Views: 2572

Re: Question about instalments

Somebody wrote
… only if balances due on Apr 30th exceed $3k on a regular basis.
Suppose you made $12,000 of instalments every year and owe $2,000 more on April 30.
You still have to make instalments for the next year. It is not just a question of the Apr 30 balance
by DavidR
19 Apr 2023 17:10
Forum: Taxing Situations
Topic: Corp vs sole prop income?
Replies: 15
Views: 735

Re: Corp vs sole prop income?

Now in a corporation, the corporation would pay a lower tax rate, but accounting and booking keeping fees are higher. Let's say that person takes that 100K per year, invests it inside of the corp for 10 years, and for simplicity's sake let's say a 12% tax rate, was offset by 12% gains in investments over the decade. Meaning after 10 years, the corporation now has a million dollars inside of it. Just so you know, the Corp's active business income of $100k per year is taxed at a low rate (12.2%) in Ontario, but Investment income is taxed much differently.. After 10 years, the owner decides to start taking that money out. If they do in a lump sum, the first 500K is taxed a lower rate and the next 500K will be higher? Or if the owner pays them...
by DavidR
14 Apr 2023 14:57
Forum: Taxing Situations
Topic: CRA - Missing T5 in My Account
Replies: 13
Views: 915

Re: CRA - Missing T5 in My Account

Found my T5 from TD Direct Investing in MyAccount today - CRA shows as processed April 13. And TD DI RSP contrib processed April 6
by DavidR
13 Apr 2023 09:44
Forum: Taxing Situations
Topic: Non-Cash ETF Distributions at IB
Replies: 35
Views: 1649

Re: Non-Cash ETF Distributions at IB

Do you mean the non-cash distribution amounts aren't included in the T3? If so, I'd be surprised. And if they're not included, where do you put the income on your tax return? There is a legal requirement to report the income. The T3 lists your income but it does not list how much of it was re-investing back into the fund. The T3 is complete for your yearly income tax reporting. It is not complete for your ACB tracking. Marcus, if I understand you correctly I think you are saying that there is no separate disclosure on your T3 of the amount of non-cash distribution. But surely the income allocated by the non-cash distribution is recorded in the appropriate box, along with cash income distributions. I believe Denis is saying that the income ...
by DavidR
11 Apr 2023 15:18
Forum: Taxing Situations
Topic: CRA - Missing T5 in My Account
Replies: 13
Views: 915

Re: CRA - Missing T5 in My Account

I don't know what is wrong with TD - CRA does not have my T5 slip for 2022 yet either.

I notice that CRA shows the 2021 T5 slip as having been processed by them on March 22, 2022. I thought that was bad. April 11 2023 and no 2022 T5 processed yet.

I don't know whether it is CRA's fault or TD's, but the T3 slips from TD have been posted for 2022. Very disappointing that T5 slips have not
by DavidR
04 Apr 2023 11:36
Forum: Taxing Situations
Topic: Line 22100 - Carry charges, interest and other expenses
Replies: 15
Views: 988

Re: Line 22100 - Carry charges, interest and other expenses

scorpionman wrote: 04 Apr 2023 08:52 if a superficial loss does not exist because the repurchased property is not an identical property, does it mean you can turn around and buy back the original property anytime?
I don't see why not. But just to be clear, the loss from the first sale is completely denied. Your comment "superficial loss does not exist" does not mean it becomes a 'normal' capital loss.
by DavidR
25 Mar 2023 09:52
Forum: Taxing Situations
Topic: CRA MyAccount
Replies: 137
Views: 16442

Re: CRA MyAccount

I received paper T4PS from my 2022 employer, but it's not showing up in My Account.T4 from the same company is there. Wait and see? Could be a long wait. My wife used to get a T4PS every year from big bank employer - it was never available on MyAccount. Perhaps next year? CRA has been slowly improving - for example T2202 Tuition certificates are now available, after years of having to nag your kid to retrieve it from the school's Portal... BTW, I don't know why they paid 'bonus' as profit sharing and didn't deduct any taxes at source, I was wondering about that and it was an unpleasant surprise to see how much I owe... I was never paid like this and they could have explained the tax consequences. :evil: Was it a bonus or an Employee share ...
by DavidR
18 Mar 2023 15:34
Forum: Taxing Situations
Topic: T5013 from TD for Brookfield LP's
Replies: 4
Views: 478

Re: T5013 from TD for Brookfield LP's

Thanks David R, I have looked at the tax statement you provided (and that is posted on the Brookfield sites) and applied the shares I owned at each distribution date to calculate the dollar amount of each of the tax characteristics. When I then compare these numbers to what has been provided on the T5013 tax slip, it appears the numbers reported on the T5013 slip are the Canadian $ equivalent of those tax factors multiplied by the USD exchange rate of 1.3013 a second time. The total distributions as reported on the T5013 for both LP's I own are approximately 30% more than I expected. I assume this may hold true for all the Brookfield LP's held in taxable accounts. If there is an error in the slip, it would be the fault of your financial in...
by DavidR
18 Mar 2023 13:31
Forum: Taxing Situations
Topic: T5013 from TD for Brookfield LP's
Replies: 4
Views: 478

Re: T5013 from TD for Brookfield LP's

Hi Everyone, Just wondering if anyone else noticed when downloading their T5013 tax slips for Brookfield Infrastructure LP and Brookfield Renewable LP that the individual boxes with the types of income/cashflows (return of capital, income, capital gains, dividends etc.) do not add up to the total distribution on the tax slip. i.e. the Total Distribution on the tax slip is $4,070 (CAD$) and the underlying types of income/cashflows total $5,230. My own calculation of the USD dividends I received for Brookfield Infrastructure LP in 2022 x the CRA rate of 1.3013, I would expect close to $4,012 (CAD$). Technically, what I am reporting to CRA would be overstated by approximately $1,200 for the one LP. The same problem exists for Brookfield Renew...