I have InTrustFor (ITF) investment accounts for each of my minor children. Their Canada Child Benefit (CCB) is deposited into these accounts and then invested and dividend income is generated. I file tax returns each year for the kids and they claim the dividend income. Normally such dividend income would be attributed back to me but there is an exception when the funds deposited into the ITF are solely CCB payments, in that case the kids pay...
With the new T3 Schedule 15 reporting requirements this year, does it actually mean you need to file for any joint account over $50,000 as it is considered a bare trust?
I'm a bit confused, and haven't seen much written about this yet to provide clear guidance. I'm hoping some of the bright minds here will know what it all means and how best to proceed.
Some details in this article that led to my question:
I am curious if anyone has direct experience with providing the CRA with any document that is the scanned copy of an original. I assume in this day and age its fine.
Explanation
I just want to get rid of paper. In this case, I am NOT talking about the digital original, like a T5 slip from TDDI in PDF format. I am talking about a receipt, or invoice, or something of the like that I scan digitally from original paper version and store safely,...
Maybe I have not been getting enough sleep, but this seems to be getting more confusing every year.
Referring to the CRA's Form T1135 - Reporting for 2014 and later tax years they have some changes from last year. The one that caught my eye is the following:
4. The reporting exception that excludes certain property from the detailed reporting requirement where the taxpayer has received a T3, Statement of Trust Income Allocations and...
If someone received the following T5 perhaps you'll know better than me. No biggie - more curious than anything else.
A mailed (not available online apparently) T5 slip from TD Asset Management has $140.27 in Box 13 (Interest from Canadian sources). It's for an ISA - TDB 8152 which pays out in my US dollar trading account at TD Canada Trust. Just above the quoted $140.27 there is FED 13 and I'm going to assume it means interest income up to...
My wife and I have our pay cheques deposited into a joint bank account for simplicity of administration, paying bills, etc. We also use the joint bank account to fund contributions to our investment accounts, both registered (TFSA and RRSP) and taxable accounts (separate individual margin accounts). The total contributions made to each of our respective investment accounts are more than adequately covered by our respective contributions to the...
As with most things government or Tax Act, this thing seems to be clear as mud. :roll:
Underused Housing Tax Act - 2022
Seems designed mostly to affect non citizens (or non landed immigrants) or those properties owned through a trust or private corporation. Even then, there seems to be quite a few loopholes ?
Something tells me I'm going to have to call KPMG next week to get a definitive answer but there's no harm in asking here.
Suppose one has an investment portfolio inside a Canadian controlled private corporation (CCPC). Reasons are legion: money from an active business that hasn't been paid out in some way, avoiding US estate tax liability, hiding behind the limited liability, whatever. The investment portfolio produces income, say interest,...
For 2023 I was able to match IBKRs T5008 numbers for US futures positions that I opened and closed in 2023.
I calculated the gain in USD and converted the gain/loss to CAD using the FX on the settlement date on the day I sold the position.
The few (3) that I am having trouble with are all trades that I did not sell in 2023 so the position was open at the end of 2023.
I spoke with someone at IBKR and they said what is reported on the T5008...
I'm doing my 2023 income tax now (using TurboTax) and have a quick question about the categories for Capital Cost Allowance, plus a related question.
The context: I'm a freelance writer, receiving modest income from my work. I claim expenses against my income, including office expenses and depreciation on my computer, printer, external hard drives, and software. I write a statement of business income and expenses each year (and make sure the...
For Tax Purposes, is a RIF transferred upon death to a spouse named ‘successor annuitant’, treated differently than if the spouse was named ‘beneficiary’?
I was named beneficiary of husband’s RRSP, and successor annuitant of his RRIF. After he died, his RRSP was transferred into my RRSP, and his RRIF was transferred into my RRIF.
I received a receipt for the RRSP contribution and a T4RSP in late January. I haven’t received anything regarding...
I apologize if I should have added to this post ( but I thought my questions where different enough to start a new thread. Since I have never personally been involved in the submission of final returns the following mechanics are a bit unclear to me and I am looking for clarification.
#1 - I understand the concept and purpose of an executor sending a letter of direction to a discount brokerage to produce the FMW of assets on the day of death....
My mom passed away at the end of September last year.
I have started getting tax documents from TD for her investments, and they cover the entire year of 2023, not just up until the date of her death. My understanding is that when she died, her estate came into existence and it is a separate entity from her. I created a trust (GRE) for the estate recently.
Do you pro-rate the T3/T5 documents from the investment co by the proportion of the...
If you are a factual resident of Canada but have the ability to work online (for a boss or self-employed) and choose to do so from various locations inside or outside Canada, is any of it deductible on T2125 or as a home-office deduction?
Or another category? And how much is deductible?
I notice that the T2125 form has only room for 1 location per fiscal period in section 7 under home-office expense.
Must this be the address that appears at...
Anyone know what the latest version of the treaty is and where to find it?
Google search. the first two hits are at CRA to html pages, dated 2008 and 2012. I can't discern immediately if these are identical and if they match the versions I can find in pdf.
A search directly at the CRA site turns up The Convention between Canada and the United States of America , as amended by the protocols signed on June 14, 1983, March 28, 1984, March 17,...
A family member works from home (WFH) 4 days a week and now that the flat rate method has been discontinued for WFH employees in 2023, she asked me about the pros and cons of asking her employer for a T2200. Admittedly, since I retired in 2021, I hadn't given it much thought until now but the little research I did for her suggests eligible expenses include utilities, house internet, rent, maintenance and minor repair costs (but not mortgage...
I did my son's tax return using Ufile.
I am going over the final T1 tax return and I am trying to understand every line.
I am down to one last unsolved mystery.
His T3 shows the following:
Box 25 (Foreign non-business income): $162.14
Box 34 (Foreign non-business income tax paid): $18.77
Being a student, his income is modest. Consequently, Ufile uses a combination of Deduction under subsection 20(12) (reported on line 23200 of the T1 tax...
I am currently in the process of doing the final tax return for my father, who passed away in January 2023 in Ontario. The estate is relatively small, valued at under $20,000. The majority of the estate consists of $14,000 USD in cash held in a Canadian bank account. The intention is to convert the USD to Canadian dollars and distribute it to the beneficiary once the account is settled.
The bank account in question has been in existence...
Phil Hogan, a BC-based cross-border tax guy states in an article at LinkedIn ( Interest will only be taxable in the country you are a resident (Article XI)
My wife and I are both residents of Canada (both US citizens, I am a Canadian PR and she is a Canadian citizen). We were not residents of the US for any portion of 2023. I am trying to unpack Hogan's statement above and how it applies to our situation. (this is my third year of tax...
A heads-up if you hold CapREIT or Allied Properties REIT. Both of these REITs had non-cash distributions in 2023 which will affect the ACB. The REIT non-cash distribution is similar to an ETF phantom distribtion. The non-cash distribution will increase the ACB for these REITs.
I wasn't aware of the REIT non-cash distribution until I noticed my TDDI account activities this week showed the non-cash distributions back-dated to Dec 2023.
I need our access codes for our 2023 tax returns, and I'm unable to get them from our CRA accounts. They are to be found on the top left corner of the NOA. I do not have printed copies of the NOA for last year.
After signing in to our CRA account and going to the Tax Returns page, when I click on notice of assessment or reassessment for 2022, all I get is a blank page. This is the case 2021, 2020, etc.
I made an RRSP contribution on March 5th, which for reasons unknown (I'm still waiting on a response from them), CIBC have deemed the contribution to have actually occurred in February 29 and issued an RRSP receipt dated Feb 29.
They also didn't provide the RRSP receipt to me until after I submitted my 2023 tax return to CRA.
This additional RRSP contribution means I will have over-contributed by about $200.
Question: Regarding the sale of FIL’s residence which has been occupied by his wife from the date of their wedding until the date of her death 2.8 years after his death - can a principal residence exemption be claimed for that 2.8 year period after FIL’s death?
Accompanying facts:
- FIL & Mil bought the house in Ontario in 1976. Both FIL and MIL remain on title until sale closing, January 2024
- MIL died in 1997
- FIL re-married...
For those with a small CCPC, how are you keeping your minute books? Does your accountant do it for you annually? Do you use an online service to generate them?
Is it correct that GICs are taxed each year regardless of the maturity of the GIC ? For example, is a 5 year GIC subject to tax annually on each year's interest even though the owner will not receive the interest until maturity ?
If the above is correct, do owners of GICs receive a T slip each year from the GIC issuer which reports that specific year's interest ?
I'm recently retired and have lived by passive low cost investing for years. Buy and hold has been my mantra. For the first time, I'm beginning to sell some ETF's and stock holdings in our joint taxable account.
Is it possible to split capital gains with a spouse? Or must it be one taxpayer filing?
I have a RRSP and a DPSP at Manulife via my company.
Can I transfer them as I please to another RRSP account that I have? I tried to read a few article as this one
but they seem to suggest that I can transfer DPSP only when I will quit the company, is it the case? I assume that I can transfer my RRSP to another institution, like I did a few times, and recently, with the form T2033
I've read that options with different strike prices and expiries are treated as the same property and have some questions about how capital losses work with options.
Scenario 1:
Jan 10 - Purchase 10 call options $70 strike for $4000.
Jan 20 - Purchase 10 call options $65 strike for $3000.
Feb 10 - Sell the $70 strike for $2000 loss.
Do I add the capital loss from my $70 strike to the ACB of my $65 strike calls? Which now equals to...
I have received a T5008 from the CRA (Securities transaction details) which shows my sale of an RRB (3% Dec1/35). TD is my broker and they came up with an incorrect book value of these bonds as 48.19975 (column 20). They sold for 184.081. (column 21)
I'm worried that they are going to hit me up for capital gains even though I have been paying ordinary income taxes on the interest and capital gains (which they seem to call return of capital?) all...
Has anyone noticed the absence of crucial tombstone data, such as beneficiary or succession holder details, on tax forms or account statements? This seems like vital information that should be readily accessible at the trustee site. It appears that Scotiabank/iTrade has obscured this information, making it difficult to locate or validate its correct during any reasonable annual review process. Am I forced to call and ask them to send me a letter...
Tax statements for a mutual fund, in a taxable account, come out 2 to 4 weeks after the deadline for T5s for example. I'm with TDDI, and I bought a few hundred dollars of TDB900 last year. I was told today that statement won't be available until March 15th at the earliest. A little bit annoying as I'm ready to file my taxes otherwise.
I think going forward, I might just sit on the cash as it wasn't...
I've been digging into my ScotiaiTrade T5 for 2023, specifically focusing on the CASH DIV transactions. After downloading all the data, it looks like I'm getting a figure around $1000 less than what's stated on the printed T5. The dividends are in USD, and I've multiplied them by the exchange rate published by BoC on the settlement day for my calculations. Unless there's a different exchange rate in play (or an issue with their...
Does anyone know if any of the management fees of mutual funds or ETFs (held in non-registered accounts) can be considered, for tax purposes, as expenses incurred to earn income?
I have a T5008 from NBDB. All the boxes are empty.
In the Securities Transactions Details , I see a list of 3 transactions.
There are 2 transactions pertaining to the 2 Norbert Gambits that I did in 2023, one for about 5500 shares of DLR and the other one for about 1000 shares of DLR, the first one showing a small capital gain (amount for box 21 slightly larger than amount for box 20) and the second one showing a small capital loss (amount for...
I filed the final return and a rights and things return for an estate that I am the executor of back at the the end of April 2023. I have patiently waited, knowing the final return must be paper filed and expected it to take some time to get assessed. We are now over 6 months since it was filed. Online it merely shows Not Received. I contacted CRA and though the agent did her best to be helpful she could not see the returns in her system. I...
Successor holder account: No
This box will show Yes if a successor holder exists at the time of death of the TFSA holder.
However, I've been very diligent in ensuring my brokerage has my spouse as Successor (and vice versa), and my current account statement confirms it. Do I need to fix something to ensure CRA has my TFSA as a Successor holder account?
Hoping to get assistance from your collective wisdom again. I'm just horrible with taxes. This is my only 'complicated' situation on an otherwise simplistic tax return. Found an old post from 2013 but it was too different to be useful and a link to a CRA page was expired.
My employer grants shares annually (some vest each year). In 2020 they had a spinoff company which we received shares. They arranged with the CRA and it is listed as an...
Is it true that if I would be actively managing my own stock portfolio, say with 100+ and frequent buy/sell a handful of stocks during the year, the CG may be taxed as business income. However, if I'd pay a financial advisor to actively managed the same stock porfolio for me, it will be taxed as CG regardless of how many tranactions the advisor makes during the year?
Thanks for your reply cardhu
Might not be the appropriate forum to review but I'll add to the above post that I'm married and my wife has zero personal income for many years. Up until 2023 our cash reserves never amounted to much interest income. Then BOOM! . I also started to collect enhanced OAS at age 70. For all prior 15 years I filed our joint T3s and T5s from our TD accounts solely on my tax return with she as spouse dependant. It was...
In June 2023, the ETF paid a distribution that was categorised as income. Both brokers deducted 15% US WHT.
At the end of the year, IShares recategorised the distribution to 100% Return of Capital.
One broker has reversed the WHT on the basis that an RoC would require no WHT be paid in the US - though obviously the full amount is taxable to me as a foreign dividend in Canada. This seems correct to me....
I am sole executor and estate trustee for my mother who died in March 2023. It took until November to obtain probate and release of funds by financial institutions. With plenty of holdback for tax obligations, I then decided to go ahead with the distribution of several small cash legacy payments to various family members. As well, the will clearly instructs the estate trustee to hold an additional legacy amount for a grandchild until age 25. In...
Say I get 5000$ withheld from my rrsp withdrawal.
Does it mean I can avoid paying up to 5000$ of installments in the year or I have to pay the 5k plus the installments?
Too keep a long story short, I messed up my TFSA contributions 2 years ago. Last year I was sent a letter from CRA indicating I needed to pay tax on the excess TFSA amount. I promptly paid that in order to stop the interest clock on the outstanding amount.
I would like to know if anyone here can advise if this tax can be claimed on my 2023 return? If so, how?
Reposting from Bogleheads Forum based on suggestion. My first post on this forum - thanks in advance! :happy
Context
I'm planning to move back to Canada (Canadian Citizen - no Green Card) in a few years after working in US for many years and have investments in a regular US Brokerage Account. I came across this article discussing Tax implications of this account in and want to confirm / correct my understanding as it sounds...
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