Assuming that the total asset cost for the taxpayer is sufficiently high when combining taxable and RRSP accounts, would these RRSP assets be reported on the T1135 (Foreign Income Verification Statement)?
Probably section 7 if the answer is yes ?
If no RRSP withdrawals were made, is there supposed to be income reported next to those assets on the T1135? (You can assume some dividends were paid by...
I see that it is now possible to pay taxes owed to CRA (T1, T2, payroll, GST/HST) by credit card using a service offered by Plastiq . Until May 31, they are reducing their fee to 1% for MasterCard payments (regularly 2.5%). This seems like a pretty good deal for anyone with taxes owing, a MasterCard offering >1% in rewards/cash back, and the ability to pay off the credit card by its due date.
Has anyone used this service before? It's listed on...
Timely blog post by Canadian Investor at How to Invest Online detailing the Canadian provider's estimates of upcoming reinvested distributions.
Of note to Canadian broad market indexers, XIC has a ~1.5% distribution while ZCN(same index) is only at ~.75% with VCN at ~.5%. Several of the narrower (divs, fundamental, low vol) funds have substantially larger distributions.
To avoid, trade before 1pm close of market December 24th - Shareholders...
Hi guys. First post here. Registered here as I have came across this forum after several google searches regarding general CRA taxing.
Anyway, I come with a question and would like your input.
I am currently single. Got a job about a year ago, making good pay. I have been able to save quite significantly, and invest in some securities as well. I can only see this increasing in the future. I have a very good relationship with my grandparents. I...
Hello, is it possible to defer dental expenses for my wife? She is/was on maternity leave and extended maternity when she underwent some dental work, thus she had much lower income, and later no income. Can we defer her dental expenses to a year with a full income? Will it make a difference if possible? Thanks for your help
First time I got a value on this line item. From reading the below, the value on this line takes away your RRSP contribution room, however you can't deduct it from your income. That doesn't seem to make sense at all? I rather contribute to RRSP so that it can be deducted from my total income. Am I missing something here?
I haven't received some slips from my broker for interest income and some dividend income. I would like to my return completed and filed as I would like to take a trip. I was thinking of going over my statements and calculating the dividends and interest and inserting that information. Have you any advise or suggestions?
I need some help with a tax question. I did some short selling of stocks for the first time this year and I am not sure how to report the gains & losses on my income taxes.
If I follow the CRA booklet, short sale gains are treated as income so I assume they should be reported on line 121 (interest & other investment income)
If I have losses, how do I report them ? Do I have to file schedule 6 for business losses ?
Watching the Nightly Business report on PBS one of the correspondents reported that 3 out of 4 Income Tax filers in the USA get a refund . Average refund is $2900.
Is this true in Canada ? If so I been doing something wrong for 50 years since I cannot recall a refund like this ever. I have felt lucky to not have to pay something.
I logged into the site today and there was nothing there! I had etf's and a dozen stocks in
the shareholder account. No information or emergency phone numbers in case of fraud .
I called the phone number and no messages about server problems or anything . No news
reports of hackers - no info about what to do...
Anyone know anything about this ? Help !
Hello - I tried doing a search for my question but didn't find anything (or maybe was searching wrong terms).
I have two daughters (8 and 11) and am trying to give them a head start in financial education so that they are better prepared when they are older (e.g., they have 'spending' and 'saving' accounts (in jars), having a 'simplified' bank book to track their money, learning about wants versus needs, etc). That has been going well, but this...
I'm in Europe at the moment but the guy picking up my mail said that Brookfield sent a K-1 US tax form for BIP.UN (Brookfield Infrastructure Partnership) and I own the Cdn listed one on the TSX. I haven't a clue as to why as it is in my TFSA so I wouldn't get a T5013. I'm only a CDN citizen and resident with zero ties to the US, and the IRS already withheld 15% from the US dividend portion of the payout.
I have just received a request from CRA for all prospectus, offering memorandums and financial statements of the fund for each year invested for VWO (Vanguard Emerging Market ETF). This is 8 years for me. Anybody have any idea where to find them? As I hold a number of Vanguard US ETFs in a US$ account I can only assume this will be death by a thousand cuts. Please don't tell me I should have saved them as I clearly didn't. I have two weeks.
I have been using globeinvestor's free portfolio tool to keep track of capital gain/lost in the past. However as my US holding increases, it is becoming difficult to to know my gain/lost in Canadian for each holding. It is time consuming to figure out the base cost of a US holding when it was bought and sold multiple times. Is there a free tool available that can help?
This is my first year having taxable investments that weren't just plain stocks. I just got the T3 for ZEA which is BMO's international fund. The tax program asks me to tell it which foreign country the foreign tax paid is associated to, but this is written nowhere on the T3 or on BMO's fund information page. Do you just select Other since it is presumably from multiple countries?
Did a couple of searches and didn't see anything on this...helping a young relative...
Relative started 2014 in ON; lived in NS from Aug through Dec 31. But moved back to ON in Feb 2015. Expect he will nowstay in ON permanently. Which province to file in? Is there even a choice?
I have limited room in my non taxable accounts (ie RRSP/TFSA). I am deciding where to put bond funds, an S&P 500 index fund and a REIT that has 50% Return on Capital and 50% taxable income properties.
So assuming a 100K investment for ease of simplicity and that there is only 100K room in non taxable accounts:
Bond fund - 2.75% yield or 2750 annually - 100% taxable
REIT fund - 6% yield or $6000 of which 1/2 is taxable immediately and 1/2 ROC....
There is no shortage of confusion and misinformation out there when it comes to filing your taxes, from skewed perceptions about reporting income to simple misunderstandings about revenue agency rules. We bust 10 of the most common myths.
I am Canadian and I hold shares in a US company which issues dividends. Got T1042-S. I'm using Turbotax. Do I enter dividend amount under Foreign slip Investment Income or Investment income exempt under a tax treaty or Other income
A nice summary to novice investors about the tax differences between ETFs and mutual funds.
It does point out a difference between ETFs/mutual funds that originate in the USA and those that originate in Canada.
In the USA, both mutual funds and ETFs can take advantage of tax lots to minimize taxes. From what I understand, tax lots don't exist in Canada. So ETFs/MFs that originate in the USA have a tax advantage over ETFs/MFs that originate in...
One advantage of long term investing is the ability to defer capital gains, and thereby defer tax. Until I saw this post, I never had seen an analysis of the increased return associated with deferral of capital gains.
The author in the link makes the case of a $300 K investment that has appreciated to $400k. Assume a 15% capital gains tax rate. By deferring capital gains, you defer tax of $15,000 every year. So the government has given you...
Received T3 from HR REIT which has some US exposure. It has some box 25 income. On the reverse side of the T3 is the following note regarding Box 25 (foreign non-business income): 'include this amount on line 135 of your return and on Form T2209, Federal Foreign Tax Credits'. So I plug the Box 25 value into TaxFreeway T3. But when I navigate to Form T2209 with the 'Navigation' menu on the left, all the fields are blank. And it appears the only...
I realize that I'm really just restating the flat tax / fair tax model, but the more I hear about it, the more it makes sense.
The US has reached the point where roughly half their citizens don't pay any federal income tax at all. That seems extremely unfair to me, and signifies a tipping point of sorts. It can't be healthy to be relying on the passivity of a minority of your population to support the entire society. From here, it can only get...
I am a US Citizen living and working in Canada, and my wife is a US and Canadian Citizen. We are looking for a tax accountant familiar with the tax implications of US citizens living in Canada, and can help us do our CDN and US taxes. If anyone has any good references, could you send me a PM?
We have at work employee benefit plan .
Employer, every paycheque, deduct $ for Group Insurance and
LTD payments. Can I claim Group Insurance and LTD payments as medical expense? or it's somehow already included in T4?
P.S. I have nothing in Box 85 on my T4 (as well as my wife)....
A heads-up to anyone who owns or owned Abbott Laboratories (ABT - NYSE) in a taxable account and received the AbbVie Inc. (ABBV) spin-off in January 2013.
Your T5 might show a rather large dividend as a result, but fear not, Information for Canadian resident shareholders concerning the Canadian Income Tax Election on the spin-off of AbbVie Inc. from Abbott Laboratories covers the information you'll need should you want to defer the tax on the...
My son has asked me for help on an issue about a RRSP for his wife.
My DIL has just returned to work after a 1 year maternity leave.
A spousal RRSP is out (this year at least) as he has no more contribution room.
My DIL does not have an RRSP but has a fair amount of contribution room. She has no money. Her tax bill this year (2014) is pretty high. Also a RRSP would be available to take out in the future for HBP when they decide to buy a house...
I read it was possible for a surviving spouse to rollover the RRSP of the deceased into its own, thereby delaying taxation upon the death of the surviving spouse.
In practice, is there anything that prevents the rollover to be repeated ad infinitum if the surviving spouse finds a new (ideally younger) life partner afterwards?
My understanding is that as an employee & shareholder of my CCPC, I can receive a loan from the CCPC for the purposes of purchasing a principal residence. I understand that I have to repay the CCPC using set terms and standard rates...
CRA Bulletins:
IT-119R4: suggests a written agreement regarding the loan is preferable, but not necessary, and that it has to be because the employee was an employee and not a...
A friend is incorporated, (CCPC), and is trying to open a brokerage account for his corporation and his bank has asked him to complete an IGA (intergovernmental agreement form) where he gets to specify if his corporation is active or passive.
He is NOT a US citizen, and has no links to the US.
We have a large family and we have been considering getting a nanny to help out. I am only earning rental income and dividends (not a huge amount but enough to pay the bills). My wife is currently a stay at home mom and thinking of starting a small business or some real estate investment (but also would only earn rental income). We have been holding off on a nanny for years because of cost, but has become a necessity for sanity with so many...
There.s a capital loss from a stock in sold in 2013 that I.ve been carrying forward unused on tax return. If the sale of a secondary residence in 2015 results in a capital gain, can the prior capital loss be used to offset the gain? The thing I.m unsure of is whether stock market capital losses can be applied on property capital gains.
I moved to the US in 1987 and left a RRSP behind in Canada. Since I couldn't contribute to it and because I thought I couldn't touch it until retirement, I basically ignored it and never told the US about it. It just rolled over and now amounts to less than $8000.00. On a visit to Ontario last year, I thought I should look into the matter and discovered that I should have been reporting this to the IRS. I since found out that the US has changed...
Without stressing the limited grey matter I have, I need two things to clear up the fog on how charitable donations can be self serving when you have capital gains.
1) I need an initial benefit statement as to how the marginal tax rate when applied to 50% of net capital gains can me be mitigated and to what extent.
(2) An example that demonstrates the math and the factors that decide how this mitigation does better or less better.
I'm 68 and a newbie here. My sin is that I did not comply with submitting gains and losses in my tax returns of past years. I have the time and the intelligence (I was a dummy when working!) with the advice of those of you who know better, as to how to effectively and efficiently resolve any residual problems with the CRA in getting this behind me.
(1) Since working in 1974 I cannot remember all the years I was negligent in reporting losses and...
I had a rental property which I sold in September 1 2013. The renter left on June 1. I made a number of trips from my residence which is 300 kilometers away to attend to the property . In addition there was utility ,property taxes and insurance payments for that June 1 to Sept 1 period. I don't believe that I can use these expenses towards the rental arrangement. I incurred a significant capital gain. Can they be applied towards increasing my...
How do I report interest income that was paid in 2009 and then retracted in 2010? I purchased a cashable GIC in 2009 that paid semi-annual interest of 2% if held to maturity, but the rate was reduced to 0.05% if the GIC was cashed before maturity. I received one semi-annual interest payment at 2% in 2009, and then I cashed the GIC early in 2010. The overpayment of interest was subtracted from the capital that was paid out when the GIC was...
We have approximately 28,000 in CG tax to pay this year. In all the reading I've done, I see no way (other than using offsetting losses) to reduce this bill. The CG come from selling stocks to rebalance the portfolio. I guess we just have to do the right thing and pay up on April 30th next year. Or am I missing something?
We are non-residents of Canada, reside in the US. My wife has both Canadian and US citizenship. She retains a savings account in Alberta which gets a small amount of interest each year (less than $100 Cdn).
Must we prepare a Canadian federal income tax return?
I am thinking that we do not, but we do need to report this on the US side.
My wife is starting a new sideline business. She paid for some training and certifications in 2014, but won't book any clients until 2015.
As far as I understand it she there's no need for a business to show a profit in order to claim expenses, you just have to have the expectation of profit at some point, but will having no income be a giant red flag to CRA? Since my wife has plenty of regular employment income, I'm worried that it will look a...
I've been using the same accountant for years. Unfortunately this year he is retiring this year. So now I'm stuck without someone to do my taxes. My friend is using TurboTax and he says it's pretty easy. I'm not sure if I should try to find another accountant or go the software route.
Is there anyone else that made a switch from an accountant? What are you using now?
I was going to add to Estate of Deceased but thought this was different enough to merit its own topic. It applies to Quebec.
I have been asked by someone appointed as executor whether they should consider resigning as executor/liquidator of an estate that is insolvent, i.e. the executor already knows the estate does not have enough assets to pay off creditors, including CRA/QC. The individual passed away after Nov 1, 2014 so the tax return is...
Here is a quick scenario, my clients job was restructered and now shes been offered a package. I'll use round number for easier arguments sake. She was with the company for the past 7 years, they have a matching group plan. She typically has about $4K in contibution room left that she uses to max out the RSP at tax time. The received this severance Jan 8th 2015. Assuming not all of it can rollover to her RSP can she use 2015's RSP...
I am about to make a big ticket purchase online. The seller is in the USA. The product is to be delivered by mail. However I am pondering the idea of specifying a billing address in Alberta although the shipping address would be in Quebec to avoid the provincial sales tax that applies to my province of residence.
Simple question : is this legal or is there a way to make it so ?
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