I am a Canadian citizen and a tax resident of Canada. I have a question about declaring a personal use apartment in form T1135.
Back in 2022 I purchased an apartment in my home country in Europe. The apartment cost over 100.000 CAD, and as a result, I declared it in the T1135 form.
At the time (2023) I did not know that I did not have to declare my apartment, since it is a personal use property.
Be aware of the key changes that could affect your 2023 tax filings First-home savings account...
Canada Workers Benefit...
Residential property flipping...
Multigenerational home renovations...
Working from home...
Trust tax reporting...
Electronic payments. New rules now require taxpayers to make any tax payments over $10,000 electronically or face a penalty of $100 per payment. CRA has said it expects to allow a grace period before...
My uncle has his estate set up so majority of his assets are under joint with right of survivorship with his spouse/son. So that means upon his passing, these assets won't go to probate. That's said, he still likes to keep some sundry accounts under his single name totalling to under 50k.
Asking a couple of questions for him:
1. Would estate lawyer firms accept this kind of small probate case (ie. under 50k of deceased assets)?
2. If not, are...
This tidbit in the latest newsletter from Taxtips.ca caught my attention:
Salaried Employees - Home Internet Fees
In CRA's Guide T4044 under the heading of Chapter 3 - Employees earning a salary - Supplies (Computers, cell phones, and other equipment), previously indicated that You cannot deduct the monthly access fees for home Internet service. This was revised on January 29, 2021, for 2020 and later years, with a NOTE indicating You can...
I apologize in advance as these are pretty simple (silly) questions. However, since this is the first time I have ever submitted medical expenses (dental in this case) I thought I would double check a few things.
Quick Background
I fractured a tooth and decided to get an implant. $5500.
My wife happened to need three aging crowns to be replaced. $6000
Just for a simulation, I put these into Turbo Tax, just to see how they would look and...
Canadian moving to US for potentially long-term (>3y) work here, with TN.
I've read from many articles that liquidating investment account is recommended before leaving Canada.
In particular, TFSA should be liquidated totally.
I also have a non-registered margin account with Interactive broker. Let's say there're 5 US stocks in portfolio, S1-S2 is at loss totaled -$14k, S3-S4-S5 is making profit $20k.
For anyone in the know, can you confirm my understanding...
A family member passed away. Her assets consisted of: a RRIF and a TFSA, both of which my wife is beneficiary on, and several savings accounts which are held jointly with my wife (only child and sole beneficiary listed in the will). I don't believe we'll have to file a probate application. Furthermore, I don't believe we have to file an Estate Information Return. Does that sound right...
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,...
I tried to search this topic, but didn't find it has been discussed.
So, pardon me if it has been discussed and please provide me the link to it.
I will receive lump sum payout of DBP in the second quarter this year.
Since I don't have RRSP contribution room, I understand I will be paid some cash for the amount above max transfer. And I will pay tax for that.
The question is:
If I keep working, then my income tax for 2024 will be in...
However, if you take out a loan to buy the
stocks and mutual funds, the direct use of the
borrowing is for the purpose of earning income.
You can then use your $500,000 cash to buy
the house. In this case, the interest on the loan
would be fully deductible.
A tax planning tip is sometimes called the “interest
deduction shuffle”, since it involves using borrowed
money directly to buy income investments,...
I want to disclaim an inheritance but online info (link below) says there's a two year deadline (after date of death of testator, in this case my dad).
The probate process is taking longer than expected (aka family dramas) and indeed it hasn't started yet after 1 year after my dad's passing. I live in BC. Does it mean I MUST accept the inheritance after the two year deadline , are their exceptions? Indeed, why is there a deadline?
Saw mention of this on Twitter but contained few details. So I went and found the Tax Court of Canada case - 3792391 Canada Inc. v. The King . In short, it is the responsibility of the Canadian resident renter to hold back a % of total rent (25% in this case) and remit it to CRA as NR withholding tax - paying the net amount to the NR landlord.
The payer in this case, a Montreal-based owner of a gym and personal training business, rented a unit...
I'm using TurboTax. I imported from CRA the T5008 and T5. To my surprise the Schedule 3 and Schedule 3 Supplemental are still blank. The last part of Schedule 3 Supplemental has a section for T5008 and it is blank and zeros. What happened?
I switched for forms view and I can see the data from the T5008 and T5 so it definitely got imported.
Is there any difference between the web-based version of turbotax and and the Premier Online Edition (12 returns) that I bought in a box at Costco last week?
I really wanted to get a version to install locally on my computer but it seems this was not it. I see that Costco.ca has the Download version, which is likely what I wanted. I've used the installed locally version in the US and it was different than the web-based version. My impression so...
I have a friend who is a U.S. citizen living in the U.S. working in the U.S. for a Canadian company. My question has to do with U.S. Federal taxes. You might suggest he just call the HR or Payroll departments and ask them, but the company is teensy, so there really aren't those departments. Assuming they are treating my friend as a contractor, does the Canadian company have any obligation to file a 1099 with the U.S. government? Obligation or...
Situation:
Paid-off home in Toronto
Adult child getting married. Not yet in a position to buy a house/condo, and rent in Toronto is ridiculously high.
We are thinking of helping the newlyweds by fixing our basement so they can live there for a few years while saving up for a down payment.
The basement will be turned into a legal basement apartment (separate entrance, etc)
We are retired so we'll need to get a mortgage.
Newlyweds will...
I have some shares sitting around from when I worked for a us company years ago. They kick out a few hundred dollars a year in dividends. I see now that I should have been filling out a W8-BEN at the Fidelity website every three years. The US withholding has been 30% because I haven't.
Does anyone know if there's any way to claw back that historical over-withholding?
I haven't seen much discussions about the above subject. My rich friends(married couples) don't fly on the same plane. Have you guys thought about it? Thanks!
Just finished reading Daryl Diamonds latest edition of Your Retirement Income Blueprint.
Not bad, lead to a change in strategy to preserve OAS benefits from the claw back.
After graphing out pension incomes, CPP, OAS, retirement funds, and using income splitting it was clear we should draw down one of our RRSP’s up to the next tax bracket, delay CPP, and preserve the taxable account and TFSA.
Is it possible to contribute to the TSFA in kind ?
I would like to transfer positions from Margin -> TSFA without selling them.
Unbundling a bit...
They are a fixed income instrument that I would like to avoid selling / buying again (USD TIPS).
I would like to protect future additional capital adjustments from the inflation ratio adjustment by doing so (avoid fantom income)
I've tried twice and it says they are having technical issues. Want to claim some dental expenses on 2022 tax return.
It let me enter a t3 slip for 2022 that I received late.
I have to do a T1135 this year and I'm tearing my hair out trying to understand this. I've talked to two accountants and two senior advisors @ CRA and received 4 different answers. I've put at least 12 hours of time into trying to figure this out with spreadsheets and have results, but I have 3-4 diff ways to report it and do not know which is correct.
The situation:
Broker (Canadian) - doesn't give T1135 info but tried to this year but it...
I'm wondering what the most time efficient way is for tracking ACB?
I use adjustedcostbase.ca, and TDDI is my broker. Do I have to routinely check TDDI and account for all of the DRIP transactions? Or is there a better way to do this? Such as annually at tax time. I'm not even sure where to find the DRIP transactions inside of TDDI.
Just wondering if if anyone here has had the experience of of obtaining a Tax Clearance Certificate from the IRS. 'We' are about to embark on that process. 'We ' being my wife as executor of her father's estate, and me being the 'helper' with no legal standing. 'We' would be grateful if anyone had experience(s) to share. What to avoid? What worked well?
'We' did file an Estate Tax Return (Form 706-NA) within 9 months of the date of...
My uncle wants to plan out his tax for 2023 and 2024. Currently, there's a big unrealized capital gains sitting in his brokerage account like 500k. He can choose to spilt it between year 2023 and 2024, he is concerned about the AMT changes and would like to know what split offers the best tax benefit. Particularly, if he would be hit with AMT with these capital gains amounts. He has minimal other income for the year, for easy consideration,...
This is a fun incident that happened to me in 2010 that the government finally wrapped up recently (took them long enough). Made a final contribution to my TFSA in late 2010 and when I got home realized I overcontributed by a small amount (less than $100). Opps! I immediately took it out but the damage was done and with the forms I had to fill out the penalty was about 24 cents. I sent them in along with a letter saying I am happy to pay (didn't...
Is it possible to transfer a self-directed Canadian RRSP or RRIF to a similar self-directed pension product in UK, Europe or another jurisdiction?
Is there a way to legally avoid/reduce CRA withholding tax, likely 25%, on any such pension product transfer?
Are there specific international jurisdictions that reduce any net income tax liability? (e.g. new country partly offset CRA withholding tax)
In my newsfeed today was Vanguard Investments Canada Announces Estimated 2023 Annual Capital Gains Distributions for the Vanguard ETFs® TORONTO, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Vanguard Investments Canada Inc. today announced the estimated annual capital gains distributions for the Vanguard ETFs listed below for the 2023 tax year. Please note that these are estimated amounts only, as of October 31, 2023, and...
I have a question about amending form T1135 in regard to having used the wrong currency exchange rate.
Last year, (in 2022), I moved to Europe most of my funds, hoping to relocate to Europe. (My move did not materialize, yet.)
My money was moved to an euro account that did not give produce any interest, so from that point of view I do not have any income tax to pay in Canada.
However, in the process of looking into filing T1135 for...
I have been sleuthing around on Tax Preparation Software on CD for the Best Tax Refund | UFile WINDOWS to see if/when their 2023 version would be available.
Tweaking their Buy now button's link I found that indeed the UFile for Windows 2023 is available via UFile for Windows - 2023 . SAVE UP TO $8 OFF.
PROMOTION ENDS DECEMBER 11, 2023.
Pricing wise: UFile 4 for Windows - 2023, which includes 4 returns (plus 4 additional returns for modest...
I realize unlike FIFO in the US, it is not a date based system but an average cost system. Which means there is no date on an aggregate basis on which to calculate the cost basis?
But what happens with the actual average cost of those shares if you actually owned more shares than you sold (partial sales).
Say you owned 1000 shares which you bought 100 shares every year for last 10 years. It has an average cost basis, say it is $8/share. But...
My apology if this has been discussed.
I searched about preferred shares in Taxing Situations forum, but could not find specific answers.
Most opinions are to hold preferred shares in non registered account, because it is taxed less than regular dividends.
However, if investment asset is in RRSP and TFSA only, isn't it better to hold preferred shares in TFSA? All dividends are tax free in TFSA.
Unless there are huge sum of money that are over...
I have been traveling around abroad since April 2022 so even though I am not physically living in Canada I am tax resident there. I am becoming a tax resident from Spain on January 1st 2024 (Spain has a natural year tax calendar).
I would like some advice on when do I need to file my last Canadian tax return which includes the departure tax, would that be in April 2024 or 2025? In other words is my...
My spouse contributed about $30,000 to her RRSP account using her own contribution room. When claiming the tax credit, she only wanted to claim $25,000. Can she allow me to claim the remaining $5,000 to maximize the tax benefits for both of us?
I am confused about the taxes. As I am currently working for 2 employers and I am paying almost 25% out of my salary from both the employers.
I am unsure if I am paying more or less?
I am unsure if I still owe some money even after paying so much of taxes?
If I am earning 42000 as a net income, do I still need to pay taxes to the government at year end?
Are there any means to avoid/reduce paying Canadian withholding tax on RRIF withdrawals?
As I understand then Canadian tax residents ...
- Canadian tax residents are subject to personal income tax on RRIF withdrawals
- CRA permits C$2000 tax-free withdrawals per year per 65+ age Canadian tax resident
- CRA permits pension splitting
For non-residents ...
- CRA deducts withholding tax on RRIF withdrawals
- Rate of CRA withholding tax typically...
Can anybody help with this income tax question?
I am a Canadian. If I accept a transfer to US, working for the same company, what income taxes do I pay?
I will work for several months in Canada starting January 2024, then get transferred to Michigan, US.
In my mind, the taxes are:
1. Canada’s taxes for the months of residency in Canada.
2. Michigan income tax for the rest of 2024.
3. Michigan income tax for the years after 2024
A bit confused by what the cra website reports as available RRSP deduction limit.
It starts with the 2022 deduction limit of 25k.
It then adds how much I contributed *and* deducted in 2022 - 5k.
says I have 20k room for 2023.
However I actually contributed 6.5k in 2022. But I carried forward 1.5k.
Does it mean I have 20k room available or 18.5k in 2023?
The website says 20k but I'm not sure about the carried forward amount.
Welcome insight on non-Canada jurisdictions that offer Canada-like pension income splitting?
In Canada, per CRA, pension splitting rules allows a couple to reduce personal income tax. If a husband and wife had $10 and $90 of pension income then they could each report $50.
I am actively exploring tax residencies other than Canada for retirement - years in which I would have RRIF withdrawals.
Given unequal RRSP pots between husband and wife then...
Can I leave Canada for, lets say three years, and become deemed non-resident without filling up form NR73
I will not have any address abroad (so far USA and Mexico) acting as a perpetual traveller. (by RV)
My intention is to send CRA simple letter informing about my date of going abroad and asking to deduct monthly tax (25%) from my CPP/Old age pension. My annual income is about 10K. No need to report to CRA.
no house,...
Does UK HMRC tax authority legislation on one-time, tax-free withdrawals apply to Canadian RRIF pension?
HMRC, UK tax authority, permits a one-time tax-free pension withdrawal. Up to 25% of pension pot value may be withdrawn tax-free, up to a maximum level based on lifetime allowance.
I'm a Canadian tax resident with a RRSP (UK QROPS origin). Open-minded geography for retirement. Motivated to migrate portion of Canadian self-directed pension...
I would very much welcome guidance in regards withdrawal tactics from a Canadian RRSP whose origin was a QROPS transfer.
- In early 2015, I completed the transfer of an occupational UK pension into a Canadian RRSP (Scotia iTrade)
- All aspects were duly filed and CRA ok
- I understand that relevant UK legislation changed after my transfer date
- At some future date then I will seek to make withdrawals from the Canadian RRSP
- I am keen to avoid...
Subsidies to rich seniors make no sense Last year, the federal government spent $69.4-billion on elderly benefits. That will jump to $101.3-billion in fiscal 2029. Debt servicing costs are set to rise to $60.7-billion in fiscal 2029 from $35-billion in fiscal 2023. Together, those two line items will grow by $57.6-billion by the end of the decade...
Remove age from the equation for a moment, and answer this question: what conceivable reason is...
In this thread , Springbok describes a situation with a big capital gain that makes him (her?) reluctant to sell a position.
Let me describe a similar situation, much simplified because I am posting without a calculator at hand. I am going to use BC tax rates because they come to mind easily, top marginal rate because it's as unfavourable as possible.
Suppose you own some highly appreciated securities and the position is large enough that you...
I have a question related to a GIC I am a joint holder with my deceased mother. I am her adult son. The joint aspect was just for convenience and my mother would have claimed 100% of the interest on her 2024 tax return had she survived to the maturity date. The GIC in question matures in the summer of 2024. I have read several posts and I am not sure if I have 2 options here for tax purposes. I understand that under current rules, the...
If some US companies merge and you are a shareholder, they file a form 8937 which usually describes how the transaction is treated in terms of cost basis allocation, tax free status, etc.. for tax purposes in the US. Can this form be used to generally apply the same treatment in Canada for a stock & cash merger? If not, is there some other way to figure out which of the many possible ranges of basis between 100% realized gain and 0% realized...
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