Edit to add: I don't think this really has much to do with my own status as a PR and that the principal residence sold was located in Florida. It's really a case of the principal residence was sold, then a new one was established, but later the second principal residence was turned into a rental, and then a third property was purchased and became the principal residence . Does that cause any problems with income taxes?
I have a question regarding the notice of redetermination I received for CERB.
In the 12 months before my application for CERB, I earned more than $5000. A few months ago, I received a letter from the CRA requesting proof of income to determine my eligibility for receiving CERB. I sent in 12 monthly invoices for that entire year, demonstrating that I earned more than $5000 in that year.
I asked a few questions about incorporating in THIS thread, and I got a lot of great answers. And a very special thank you to Hamor who took the time for a phone call and gave me lots of great first hand advice, which is very much appreciated.
I wanted to create this thread to list as much helpful information for anyone else that might be wondering about this too in the future. And to answer some more questions along the way. Please keep in...
Is there an extension to filing income taxes for CRA? There is this in the US.
My situation is that the returns show no tax due. But I would like to have sufficient time to go through the forms that my CPA has produced; hopefully leisurely before they are submitted (with the upcoming due date it won't be so leisurely but maybe I can do it).
Last year (2021) was my first time with T1 and that was much...
Trying to dig a little deeper into this from a tax and retirement planning perspective, so we can ignore things like liability protection inside of a crop.
Let's say someone makes a 100K per year as a side business, and they don't need this income for years, so they can put the money into a corp and invest it, or they can take the income as sole propertior.
As as sole prop, they'd pay tax at their marginal rate, but would also increase their...
I've used UFILE for a few years. For T5008, I've always used the Capital gain section to report each trade to show the net gain/loss by adding each sell transaction there.
Not sure if this is new or I just didn't notice in previous years, there's actually a T5008 under the T5 section in the interview.
This indeed makes me confused.
Can I just follow what I've been doing and ignore the T5008 under the T5 section? Seems to me these two are...
If you are a factual resident of Canada because either you aren't resident anywhere else or you have more ties (other than property) in Canada, can you use a foreign address on tax return and to open brokerage/bank accounts in Canada? In other words, to be a tax resident of Canada are you obligated to rent property in Canada and is there a minimum period?
Also, if you are a dual resident but are a factual resident of Canada for tax under a tax...
According to you qualify for the Ontario Energy and Property Tax Credit if you rented, and your landlord was required to pay property tax .
The StudioTax form asks for property tax paid for your principal residence . For highrises, I find it hard to imagine each tenant asking the landlord for the portion of the property tax paid for the individual's unit.
Should I leave this blank and will CRA automatically determine this?
Anyone know how to enter an amount for Line 47600, Tax paid by instalments in Turbotax. Double clicking the line does nothing and won’t allow me to enter anything.
According to one of the criteria for the Ontario Energy and Property Tax Credit is that you must be currently or previously married or in a common-law relationship .
What is the reasoning for this? It seems quite arbitrary and discriminatory based on family status.
Afternote: And the same criterion applies to the Ontario Sales Tax Credit , the next section on the same webpage as above.
When I hold, say Barrick Gold in the US, is the dividend considered eligible dividends in Canada for taxes even it's paid in USD?
For some reason I want to journal the US version of the Barrick Gold stock to Canadian version, do I need to report this transaction as a sale transactions thus making the capital gains/losses tax reportable?
This is the first time this has happened. I always go to My Account (CRA) to ensure I have all the T slips posted on their site. I reckon in this way there won't be any SNAFUS. For some reason I'm still not seeing a T5 from TD which is a biggie ... all my dividends and gross up for 2022. I downloaded the available one from Feb. 15th ( e services) in my TD trading account but nowhere to be seen in My Account (CRA). I thought about phoning TD but...
For 2021, I ended up paying tons of fines because I wasn't able to give priority to submitting my tax return promptly. By the time I was, a family situation arose that took priority for several months. Having paid an estimated amount owing on-time didn't help because this year was a black swan, and my actual amount owing was much more.
Knowing how long it takes me to prepare my return (not because my finances are particularly complicated, but...
There are quite a number of posts that list when certain tax slips, i.e. T3/T4/T5 etc. should be available to the investor. So let's pull everything together in one topic.
On one hand Tax slips - Personal income tax - Canada.ca You should have received most of your slips and receipts by the end of February. However, you may not receive your T3 and T5013 slips until the end of March.
CRA offers a bit more in Tax slips: Get a copy of your...
Is the ACB of inherited stocks and property (from a deceased parent) at the time of death or date of inheritance? Additional information: Deceased assets are abroad and being a non resident of Canada. The surviving child inheriting the stocks and property is a BC resident. The deceased parent left no will.
If it's the former and when the property is abroad, it can become tricky to trace back the value of the property at time of death (when...
If your holding an A series Mutual fund at a Broker in 2022 the broker was/were mandated to switch you to the closest F series. Was this a taxable event?
Thought I'd see if any Turbotax paper filers here:
I checked the box in the CAI worksheet in the software that I live outside a CMA but when I go to print the shortened paper return (pdf) for mailing, the X doesn't populate in the check this box if you reside outside the census metropolitan area (CMA)... on the return.
The X shows in the software program in the right place and also in the CRA full copy version pdf.
for self employed individuals, what is difference between a travel and moving expense? is it merely the duration or purpose of the move? both seem to require a trip for carrying on business..if you work from home remotely, i understand that a move for no real business reason is considered non deductible entertainment..an example is given in this document of someone moving to Toronto from Brampton because they don't like the commute.
In 2022 all the severance I received was put directly into my RRSP so I cannot deduct legal fees. I had other income but not related to the legal fees.
In 2023 I have severance that was not put into RRSP so I plan to deduct this carried forward legal fee.
Is there something I need to do in my 2022 tax return to CARRY FORWARD the legal fees or do I simply not deduct them and use them on my 2023 tax return? I'm wondering if there's some schedule...
Wife and I own a property that we rent to her family members. Rent is probably below fair market value but is not an inconsequential amount. The intent was (is) to make some income on this arrangement but allow family to have a nicer home than they could otherwise afford. The house was paid for in cash, no mortgage. In an alternate universe that cash is invested in Vanguard Total (US) Stock Market Index Fund, making some money.
I do 7 taxes ( all family members) using U-File online. It’s been great and have been using it for 20+ years. Anyways coming to the real question, my daughter worked for a company from Jan 2022 to June 2022 until they close down and filed for bankruptcy. She has no T4 for this period and it seems like the few employee/ owner is long gone and not responding to emails to send an electronic copy of T4, also her CRA my account does not have this...
I'm close to retirement but have a vacation property. Eventually, I'll probably sell the vacation property, either because I need the money for spending, or because I'm not healthy/eager enough to enjoy it. I always assumed there would be a big unavoidable capital gains tax liability on date of sale, but, I just found out that RRSP contribution room can be used to reduce capital gains income. (For some reason I didn't previously know that RRSP...
Received severance from my employer in 2022, part of it was designated as Retirement Allowance. Still have more severance coming in 2023 later.
To be honest, I always had a poor understanding of the Retirement Allowance but understood it could be directly put into my RRSP without eating up RRSP contribution room.
I was told that the Retirement Allowance shows up on my T4 in Box 66 as Other Income and I would report it on my tax return Schedule...
So I am doing a tax return for my 88 year old step father and it looks like he will owe some money to CRA for 2022. I am also going to have to amend his 2021 tax return where he will also owe CRA some money. He is a little old and in a different city then me, so getting him to pay this on his own is problematic and it might be easier for me to pay it myself and when I see him next he can reimburse me. He usually gets refunds so I have not had...
Part of my compensation consists of payment in RSUs (shares of a US corp).
Whenever I sell these (5-6 times per year), I sometimes incur a small capital gain, or loss.
Any Capital gains, I report, and deduct all transaction fees as an expense on the gain.
Any Capital losses, I cannot claim as they are by definition Superficial (purchased a few days by the company before I sell them). Sucks to be me since I have $1500 in...
I have used Studio Tax for years including pension splitting for couples. This year, it is not doing the pension splitting accurately. It tells me that a split will not be beneficial. But if I enter a $10,000 split, our taxes go down by $33! I would rather have the $33 than give it to CRA ;) Besides this would have increased cost of ST to $15+33=$48!
I may try running on other software just to confirm. I have used Genutax, but don't think it...
Suddenly we're confronted with the situation that 2 of 3 of my children worked (minimally) in 2022. Never thought the day would come and I am totally unprepared from a tax perspective. My youngest child hasn't worked, but earned a little bank interest. Eldest turned 18 in 2022.
A few really newbie questions if you don't mind:
1. Do my kids that worked in 2022 have to submit their own tax return? My two older children worked at Christmas time,...
Would anyone know the answer to the question of who would pay tax on a RRIF payment in the year the annuitant dies? Not sure if it matters if the payment had already been paid before or after death but in the case I am interested in the payment was physically made after death, for the year of death. So the annuitant was alive on January 1st of that year but the payment required for that year was paid after their death.
Last year I received a sizable severance payout. I had a fairly large amount of RRSP contribution room so had my employer contribute the severance to my RRSP. I paid for an Accounting firm for advice on how to best distribute the severance and apply RRSP. The severance was actually paid mostly in 2022 but part in 2023.
Question: Suddenly I am hearing about Alternative Minimum Tax and wondering if it applies to those using significant amount of...
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....
I started a sole proprietorship side hustle in 2022 that generated a relatively small amount of gross income (< $10,000). I purchased a modest amount of computer equipment (<$1000) in 2022 exclusively for the business. I believe this equipment is a capital expense (Class 8?), so would typically be depreciated each year.
Is anyone familiar with the immediate expensing property which would allow me to expense 100% of the equipment in its...
Decided to log into MyAccount today (Jan 14, 2020) and noticed that CRA says I have $12,000 in current available TFSA room (when I know I actually have zero room).
I know there is some lag between investor contributions and CRA getting notified by financial institutions, however I have allocated to my TFSA the first week of each year since inception. Is it possibly my brokerage is more than 1 year behind schedule in reporting to CRA? Or do...
I am wondering if a person would be eligible for the First Time Home Buyers Tax Credit of $10,000 in 2022 resulting in tax savings of $1500 under the following scenario.
The person purchased the property in 2022 and lives in the house, but also rents out 3 of the 4 bedrooms in the house to others. At first glance it looks like it may qualify as the person occupied the home and it is their primary residence. If the person only stay there a year...
Can someone throw some breadcrumbs for me to follow please. Right now I am just digging up blind holes.
will the CRA consider the entire capital gains on primary residence in the US, from purchase in 2010 to sale in 2022, when we were tax residents of Canada for less than 6 months by the time the sale was consummated ?
Situation:
Wife and I sold our primary residence in Florida in 2022. We purchased in 2010. It was our primary residence...
Hi,
We are returning to canada next yr after 27 years in USA, both Canadian/USA citizens, lived in canada for 22 yrs then moved for work.
I know we have to file USA taxs for life, and also Cdn taxs, I am just a bit fuzzy about the T1135,
we will have >$100,000 cdn$ in our american bank account, do we file T1135 for the first yr upon our return, or do we have a exemption for the first year ?
we have IRA,ROTHS,HSA . I believe IRA do not...
In 2022, my son has a smallish net capital loss on his Schedule 3 Line 19900. Something in the neighborhood of $250. In 2020, he had a smallish taxable capital gain on his Schedule 3 Line 19900, which was reported on Line 12700 of his T1. Something of the order of $400.
He's hesitating between the following 2 plans:
Plan A: Using form T1A, apply the 2022 net capital loss of $250 against the 2020 taxable capital gain. This will reduce his 2020...
Not sure how common spousal loans are, but was wondering how they work in practice. Typically you have one high income earner and the spouse a stay at home parent who makes very little or nothing.
OK, high income earner loans 100K to spouse and then of course needs to charge interest at the prescribed rate. OK fine. So now in 12 months that 100K loan requires a $1000 payment. How exactly is the $1000 supposed to be repaid? Would it be from a...
This is a question relating to the Canada T3 form of the ETF that is iShares S&P 500 CAD hedged, held at a Canadian brokerage, the Montreal office of Interactive Brokers. Some units of the ETF were sold during the tax year.
What is the meaning of the quantity of the Canada T3 box 21 labelled capital gains ?
Is this quantity the capital gain calculated by the brokerage on the owner's transactions? Is this quantity the capital gain within the...
Hypothetical question for me, but this happened to someone we know in another country.
Suppose we have an upcoming need for U$, so convert C$10,000 into US$. We let it sit there for a year and then decide to convert back to C$. Meanwhile the C$ has weakened against the US$ and we make a 15% gain. Say C$1580 gain?
Same question, except in this case we used the C$10,000 to buy Bitcoins. In this case, Bitcoin price increased from US$12k to...
My broker sent me both the T5 and Form 1042-S for the foreign income received and taxes withheld. Is the Form 1042S reportable or is it a duplicate of the foreign income in the T5?
I''m using UFILE tax program 2022. (many years)
I'm filling out taxes for Dad who is 80+ and widow.
What surprised me is that he owes more taxes to the federal gov't as compared to Quebec, first time ever.
Am I the only one with this question is this weird?
My friend who is a nurse was paid too much CERB in 2020, paid it back in 2022 and now has the choice of applying the repayment amount to either tax year 2020, tax year 2022 or splitting it evenly.
What's a good sanity check to decide what year?
I don't think she wants to play with modified versions of her 2020 and 2022 tax returns.
Does CRA cross check on the Box 21 Proceeds total against our T3 Proceeds total?
I held a company which was acquired during 2022, I sold all shares a week before the merger date. These sell transactions were recorded as usual on T5008 (with Box 21 procceeds and Box 20 ACB with date of sell). However, on the date of merger, the brokerage also recorded a Exchange entry on T5008 and shows the total amount of sales proceeds above in Box 21 but...
We (my wife and I) are planning to permanently return to Ontario, Canada from the USA (having lived-in the USA for the past twenty years) and have decided to import our two automobiles. I understand that importing vehicles from the USA in to Canada can be a nightmare requiring much paperwork and I would therefore like to hear from forum members who have had to import their vehicles from USA. Some of the questions I have in mind are : Whom should...
My FIL passed away last year. My MIL is still alive. They owned their home JTWROS, all registered accounts were passed to MIL via beneficiary/successor holder designations and the only other asset was a single joint bank account with my MIL, so there was no probate, etc. - everything just flowed to MIL. MIL still lives in this house and I expect her to do so for many years to come.
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