I moved from Canada to the US (California) in late 2014. (Thanks to everyone here who provided lots of helpful advice on the financial implications of that move!) As part of that move, I collapsed my TFSA and moved all my non-taxable investments to the US, but I left my RRSP intact.
I've just learned that I will have about $45k in Canadian income in 2015, in addition to my US income from my new job south of the border. I'm trying to determine...
FYI ..the 2015 OAS threshold of $72809 crosses an Ontario Heath Premium threshold.
2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs) located on CRA's website were posted earlier this month.
The OAS threshold for the 2015 tax year has been raised to $72809, an amount that crosses the Ontario Health Premium threshold...
My dad and I have argued at length about this at length lately so I am looking for some internet strangers to break the tie for us; I am trying my best to move towards a lazy portfolio but I still have a few individual shares from when I first started investing. One of which is a pretty large (for me) position in RBC:CA which has done quite well since I first bought it and I want to move it into my RRSP. I currently don't have enough...
Does anyone else have this situation? Say you use Turbotax and receive a T5008 from your broker that aggregates several transactions for capital gain/loss. You can enter the slip in Turbotax and it goes under the Schedule 3 Supplementary Statement line 'from T5008 slips' but let's say a handful of transactions require adjustments. Example: Superficial loss (reversal of loss on T5008), shorting options across the previous year (reverse or close...
One Good thing about market collapse, is that our compulsory RRIF withdrawal amount will be lower and as a result, so will our taxes and more of our savings will be sheltered.
The not so good thing, is that if we do the RRIF withdrawal early, as we usually do, the stocks will go into our taxable accounts at a low value.
I usually try to hold some of the same stocks in our RRIFS as we have held in our taxable account for many years. When...
I am moving to US (Arizona state), and need some clarifications about handling RRSP. I have been reading up on this forum, and also talking to knowledgeable professionals assigned by my / wife's companies, which has led to some confusion!
- TFSA: liquidate and send money as USD
- non-registered accounts: liquidate and send money as USD
- Defined contribution pension plan: will get converted to LIRA.
- SD-RRSP accounts: my understanding is to...
My wife and I have his, hers and our accounts. If I sell a stock in his for a loss can I immediately buy it back in hers or our accounts and not have the loss disallowed?
Tim Cestnick was on The Hour with George Stroumboulopoulos last week promoting his new book. But most of the time was spent answering tax questions. Most of them are basic, hence the placement in this forum.
The televised interview
Additional Q&A posted online only - Part I
I think there is a Part II to the online Q&A so check back to the website if you're interested in more from Tim.
I have some tax questions which I believe were partially addressed through some previous threads as well as the wiki, However, I have a few additional questions.
Previous threads:
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I am 24, a Canadian citizen, and have just moved to the U.S.. I liquidated my TFSA when I moved after reading it was not accepted as a tax-sheltered account in the U.S. So I am not sitting on ~$26k cash. I opened an RSP with TD Canada Trust a month ago...
I just moved back from USA recently and wonder if I can contribute to a TFSA. If yes, what is the maximum allowable amount and the deadline to contribute for 2014?
Anyone having 15% non-resident withholding tax applied to HR Reit distributions? I hold hr.un in two accounts, one with TD Waterhouse and one with Questrade. On the May 30th distribution, I noticed Questrade began applying 15% withholding tax. No withholding at TD Waterhouse. Here.s the question to Questrade and their reply. To me, it seems odd that one broker would apply tax one way, another broker another way: shouldn.t it be uniform? Any...
I'm on the hunt for a tax accountant in Vancouver familiar with the tax implications of US citizens living in Canada. If anyone has any good references, could you send me a PM?
Deceased passes in December 2014. Estate is not settled until some time in 2015.
1) Can the estate withdraw the annual minimum (for 2015) from the RIF before the RIF is transferred to the successor (spouse)?
- deceased is likely to have a lower marginal rate in the final year than spouse
2)Can the estate contribute for 2015 to the deceased's TFSA before the TFSA is transferred to the successor (spouse)
- a bit of extra...
On Nov 30 I ordered an item from Staples online and they have since told me it won't ship till 15 Dec. Today I see they have charged my credit card for the environmental fee. Does anybody have any ideas why Staples would expect the environmental fee before shipping? I've emailed Staples asking if this is policy and if so to explain why.
I spent money on Globeinvestor and specialized research reports on preferred shares. I have not been deducting these items. Can they deducted if one has income,dividends and/or capital gains from a taxable account?
I got a letter earlier this week from Rev Can saying their records indicate I have unpaid RRSP overcontribution fines I need to pay from prior years. They don't bother to tell what years or what dollar amounts they are talking about but that if I disagree with their (unstated) figures I need to send in my data.
Kind of hard to sort things out when the letter doesn't give any specifics. If anyone else gets this letter, here is what you need to...
I recently learned about a new CRA information source called Income Tax Folios . Folios will gradually replace the old CRA Interpretation Bulletins. Folios provide CRA's interpretation of the law as it applies to various tax topics. Many of the folio topics are still to be completed, but it's worth perusing folios if you have a tax question.
I worked as an IT consultant for a few months in 2014. I was operating under my own corporation in AB. I have since moved to QC and I am no longer operating my own business. I am working as a regular employee now.
There is a little bit of money left in the corporation for services that I sold in 2014 while I was still in AB. My goal was to pay myself these monies as a salary and close this bank account. Ideally, I would like to do so...
I'm trying to understand the benefit that tax deferral offers by using a corporation instead of a sole proprietership. I have a business and am moving to a corp, and don't need all of the profit the company will generate. I have been told that keeping it in the company will save me taxes, so I did this theoretical little spreadsheet just to try and understand the mechanics of it. Please have a look;
Tax Question (Canada): Capital Gains Treatment or Business Income as a Professional Investor
I was hoping to get some clarification on what my Accountant considers a “grey area” with Canada Revenue Agency (CRA), with respect to CRA's application of Capital Gains treatment for people buying and selling stocks with some frequency.
After reading articles and bulletins online explaining the difference between an investor like myself and that of a...
I sometimes use personal assets to pay for corporate expenses.
On my CCPC financial statements, there is a line that says Non-interest bearing loan payable to shareholder and it represents the amount of money the corporation owes me personally.
The corporation's assets are primarily in USD, but the financial statements are in CAD. I want to transfer the amount on that line to its USD equivalent amount - and use it to fund my RRSP which...
My spouse and I own a small CCPC which currently has two types of shares: common and preferred (both of which are owned by both of us in somewhat equal amounts).
Typically we have split the dividends paid to each of us in the proportion that we own preferred shares but this year one of us earned an employment income such that we would like to pay dividends to only the one who did not earn employment income.
I currently have a full time job making approximately $90k per year salary. If I started up a side business in the evenings/weekends that made say $20k per year, how would I be taxed? Would I be taxed straight income tax on $110k? Or would the $20k side business be taxed separately as its own?
I own a small Canadian company.
My company has no income this year but has some cash in the bank from previous year.
If I want to pay dividend from my company to myself, how much will I get after
deducting corporate tax?
e.g. If I pay dividend of $10000 or $15000 or $20000 to myself, then how much
will I get after deducting corporate tax?
I want to decide how much I pay dividend from my company to myself.
Thanks.
Is a Private Canadian REIT considered a 1) Canadian Controlled Private Corporation and also does it fall into the 2) Qualified Small Business Corporation
the reason I ask is no one (even top notch accountants) know this answer and CRA tax rules etc are just not to be found to give a definitive answer
I want to use my million dollar loss On the Victoria based Private REIT called the league under the CRA ABIL program but the accountants claim a...
I have 4 children. Only my oldest was registered for the CCTB, since he was born back in late 1997. I honestly don't recall registering for it, I believe at that time it was just a check box on my tax return.I only received it for about 2 years. Since then I was not working, and didn't file taxes for many years. In the mean time I had 3 more children. They are now 16, 14, 10 & 5.
I recently filed my taxes back 7 years, with help from a...
I am a Canadian citizen and moved to US a few months ago. I currently have an RRSP, a LIRA and a TFSA account in Canada.
I read about the new (2014) FATCA agreement between Canada and US. I understand that the RRSP is safe for tax purposes. I assume the LIRA would be in the same boat.
What is the situation with the TFSA?
Do I have do declare it when I file my us taxes?
Is CRA going to expose it to the IRS? If so, what should I...
One can designate and transfer an RRSP to a relative, can one do so with as well with a TFSA? I don't recall being asked to designate a recipient when I first opened my TFSA....but I didn't pay that much attention at the time.
How does CRA accommodate a TFSA after the owner dies? Is it transferred tax free to one's kid, or estate, or does the kid have to pay tax on that transfer...does the TFSA become earned income...
Operating Co (ABC) shares held by Hold Co. Hold Co shares held by Trust. Company XYZ is a beneficiary of Trust.
So dividends flow from ABC -> HoldCo -> Trust -> XYZ
Anyone know of restrictions to the types of assets held in XYZ?
I have heard of individuals purchasing a large cabin cruiser in XYZ.
Can't deduct related expenses but avoid taxes on withdrawing dividends from XYZ.
One CA I spoke to, thinks it is ok.
My question has to do with CPP contributions in the case of consultants who, in a given tax year, have generated income from both their own corporations and also regular full-time employment.
I worked as an IT consultant for most of 2013 and a bit of 2014. I was operating under my own corporation. Because I only had one customer, I became fearful of the CRA and the PSB rules ( so I decided to simply forego the idea of running my own...
I am a Canadian temporarily living/working in the US with a work visa, and I work for a Canadian employer. The scuttlebutt from the tax accountants is that Canada-based employer plan funds, managed by the usual insurance companies, are now considered to be PFICs (passive foreign investment companies for US income tax). The DC pension component is protected but the other employer retirement/saving plan accounts may require PFIC filing on US...
I'm not sure I full understand how this works. My gross understanding is that I can deduct 0.56$ or so for every km that I go away from my primary worksite. But I need to fill out a special form that my work has to sign saying they don't imburse me for it. But how do the details work?
Day1:
I work the half day at offsite (and the other half at primary site) and then I claim the mileage from home to offsite and back to home or whichever is less?...
1. Is anyone familiar with the province of Quebec regulations regarding university retirement accounts? From my talks with RBC Direct Investing, the investment branch of the Royal Bank of Canada, the only funds available to permanent residents of California (us), are individual stocks of Canadian owned firms, like Bombardier. According to RBC, no index funds, no ETF funds, no mutual funds are permitted. Tough for a Boglehead like me!...
Has anyone shifted their family assets into a holding company, limited partnerships, or family trust? I am looking at a few options in Canada and it seems we just don’t have that many options as compared to the US.
My situation is:
1) I would like a family structure that helps with estate planning. So a portion of our assets would be in this entity, that the children would be involved in and eventually continue to manage as they become of age...
Can I claim medical expenses retroactively?
I know I can claim any 12 months period ending in 2013 on 2013 tax return, but what if I wanted to claim for Jan-Dec 2013 and go back and claim for Jan-Dec 2012? Do I need to submit an adjusted return?
I was considering submitting Feb 2012-Jan 2013 for 2013 return to cover 2012 for now and next year I can do the same for 2013 expenses. Makes sense?
I am ashamed to admit I didn't know premiums paid to...
I know that income from a RRIF can be split once the transferor is 65, but can't find anything on the CRA site about whether that means that you have to have been 65 for the whole year, or if you have to prorate the split based on what month you were born. In other words, if I turn 65 in November of this year, and take a RRIF payment in December, can my spouse split that income fully on next year's return or not?
I've read that if you sell puts on account of capital gains and do not close out the position before year-end, you must assume a nil cost basis, pay the full tax on the gain in that year and then the next year, if you close out the position, you reverse that gain with a capital loss. This however does not make sense. If you claim a capital loss in the subsequent year, and have no other gains, then that loss just sits there, possibly for years,...
My wife has a bmo investore line trading account in which I do the trading as I have power of attorney.
We would like to know how to go about making this a joint account. Theres a good bit of captital gains involved.
I understand this would make it easier to pass on the estate for the serviver.
Also what if any are the tax problems.
Would appreciate any info on the topic. Thanx guys.
Peter
My understanding is that my RIF, upon my death, can be transferred to my grandson who has an RDSP. This would result in lower probate fees as well as it is tax free. Does he have to be dependent on me? I tried to reach CRA but could not find a tel.#.
I am a US citizen and have lived and worked in the US only, up until now.
I am planning to move to Canada in a couple of years (will be a permanent resident). I will be eligible to withdraw contributions from my current employer's 401K by the time my move is complete, and I will most likely do so.
I know there is a Canada-US income treaty, so when I withdraw contributions from my 401K, I won't be taxed double the amount I would if I lived in...
There are a number of reports that authorities will be strictly enforcing the 183 day rule for Canadian snowbirds. The consequences for being offside aren't very nice. I spend 165 days in a retirement community in South Texas. I am not clear how short trips into the USA are treated. We were looking at a cruise in late September. It starts in Vancouver and ends 3 weeks later in Florida. It goes through the Panama canal. There are about three days...
So according to the CRA, a superficial loss is the +/- 30 day window where you (or affiliate) either re-purchases or has the right to purchase the property that you sold. I'm wondering how options factor into this. Specifically, I'm wondering if the wording of right to purchase will refer to call options.
Ok, say I bought 100 shares of ABC @ $10 on Jan 1st.
On Jan 30th, ABC falls to $5 so I close out the position with a 50% loss.
I am planning to early retire at age of 44 or 45 with approx $1.4 Million. Plan to have approx 60/40 equity and bond split.
At that time I should have 75k in TFSA, 525 in RRSP and 800k in taxable accounts. I anticipate needing $40k per year pre tax or under a 3% withdrawal rate and less than my anticipated 3.2% dividend/interest/REIT payout yield per year. I realize that at age of 70+ I will have OAS clawback issues, so as such will start...
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