On July 17 2023 I bought a 18 month regular cash GIC (non registered, non Tax Free) compounded for 18 Months.
On July 17 2024 the interest for the first year will not be paid out but rather compund till the final maturity date. IE No intetest will be paid on the 1 year anniversary.
The interest will only be paid out at the maturity date.
I didn't apply for it, so why did the CRA give me one advanced payment?
Also, the Canada worker's benefit is calculated based on one's income, however this year I have very little income, so I shouldn't qualify for this benefit at all. Does this mean that come tax-filing time next year, the CRA is gonna realize that, and ask me to pay this money back?
Is there a simple and straight forward way to figure out what is the available contribution room for an individual? The number on the CRA site is often out dated and have no idea at what point it will be correct. The banks only have contribution number available on monthly statements, so will need to add up the total contribution from all statments since Jan of the previous year to get the total contribution, and deduct it from the last tax...
When it comes to asset location, maximizing the absolute amount of tax saved to maximize return is the priority of many. Sometimes people focus on the tax savings relative to the return of an investment. For example, assume 50% tax on fixed income and ordinary income, 25% on cap gains, and 35% on Canadian dividends. If returns are similar for each asset class, then saving tax on fixed income is the priority. But if returns are significantly...
I use to pay GST through RBC online from my personal account, which has discontinued effective May 30, 2023. There is no other Canadian bank listed, except TD Canada Trust. How should I pay GST now? Please advise. Thanks
Does anyone know if you change province (get a new health card/transfer DL) and (maybe) change your bank address to new province but still keep some ties to the other province should you also change your tax return province for the current year if you do this change before Dec 31? Or can you have docs from one province, spend time between them, and still file the old province for another year or indefinitely?
In 2022, I had the following pension income from the USA:
- Social Security
- Pension from a former employer for whom I worked for a few years in the late 1980s and early 1990s.
I retired in late 2021 and year 2022 was the first year for which I received such pension income.
I am not a US citizen and I have not filed a tax return with the IR since the mid 1990s.
Question 1:
It is my understanding that I am not required to file a tax return with...
Hello. Soon I will have a place of my own. I am just wondering, let's say I decide to sell it. Do I have to report the difference between when I bought it and when I sold it? I am not talking about capital gains tax, because I know that if I live in the condo for one year as my home, I don't have to pay any tax on any capital gain. But what I am worried about is whether my income will go up. Let's say I bought the condo for 500K, lived in it for...
For the past few years, we have been resident in Canada - but are considering relocating to the US (personal /family) reasons for a few years - before returning back to Canada.
Currently we file taxes in both countries and use the tax treaty to pay Canadian taxes and offset the US taxes. Most of our financial assets are in US brokerages (cash accounts).
Wife and I are planning to possible move out of Canada to Spain at some point in the very near future and so I am trying to figure out the best possible strategy for tax efficiency. It would be great to know your ideas and thoughts. At the moment we hold:
Joint investment non registered account: Some Bonds ETFs and mix of International, Emerging Markets, Canada and US ETFs
TFSA accounts: mix of equities ETFs
RRSP accounts: bond ETFs and...
Well 2021 is going to be my first year solely with retirement income: Capital Gains, RRSP withdrawals, and Dividends.
I just realized I am going to run into Alternative Minimum Tax (AMT) and I'll need to modify my tax spreadsheet to account for this. Once the mods are made I'll start fiddling with numbers to see how to best bring up my regularly calculated tax to at least match the AMT (because I don't ever see myself being able to recapture...
Hello. I know that when we sell gold bars in Canada, we have to report a capital gain on that year's tax. I just looked stuff up, and it seems that we have to report 50% of the gain we've made, and then add this amount to the total personal income that year, and then your personal tax rate is applied to this total.
I have a thought to minimize the amount of capital gain I've made. So instead of selling all of my gold bars in one year, I sell...
Hi there. Does anyone know how H&R Block's instant refund program works in terms of mechanics? As far as I know their contingent fees are capped by the Federal Government at 15% of the first $300 and 5% of the remainder. There is of course also a preparation fee on top of that (deducted from the refund amount). How does it mechanically work though in terms of H&R Block receiving that refund? Does CRA somehow assign the refund directly to the H&R...
Hello. I just bought a presale condo recently, and our agent has agreed to give us a commission rebate. I have been looking it up to see whether we would need to pay taxes on this money, and the general info I got is that as long as the unit is for primary residence, we don't need to report it on our taxes (despite the fact we would be issued a T4A slip). And I do intend for this condo to be my home. However, one problem is that technically this...
My wife company forcing my wife to get L1 visa in US. She lives and works in Toronto, but has also teams located in US. She estimates that will be in US about 1 month during the year. Should she also to file taxes for IRS? Any change while filing taxes in Canada for CRA? Any other impications?
So it appears that we all will get $154 free. It is a sweet refundable credit and does not seem to be income tested. You will get $231 if you are married.
Is this the so called pay back of the extra money we are going to pay for the carbon tax? I just noticed it now on line 449 of the 2018 tax return. I looked at schedule 14 and as I said, it appears we all get it. Even the filthy rich.
Anyone know more about it. Who's tax return should it go...
Pretend I make roughly $100K per year and my wife was making $50K per year and our our annual spending (including taxes) is $150K per year. My wife retires early this year 2023 but I intend to keep working for a while. Say all our investments were in RRSPs, split about 60/40 mine/hers.
I think it makes sense to take out $50k per year out of her RRSP to fund our spending, because it comes out at the lowest tax rate (I don't want to withdrawal...
My daughter in law had incorporated a company to do consulting work as it was a requirement then. Now the contractor via another of their companies has hired her as an employee, thus she doesn't need the company she incorporated. However, who knows in future if she lost her job then she could fall back and use the company to carry on her work if gets work, and thus she does not need to re incorporate a company again. Which is an exercise in...
Simple question, just want to confirm.
Fiscale Domicile:
Where by reason of the provisions of paragraph (1) an individual is a resident of both Contracting States, his status shall be determined in accordance with the following rules:
he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be...
I have had the following questions (see below) for a while. I cannot seem to find an answer, forgive me if this is obvious or already answered. This is best explained by a simple example.
Example
Let's say a couple (Person A and Person B) is just starting out. Let's assume they have no non-registered retirement savings of any type. Person A (an adult child) is gifted $100,000 from their mother. I understand that there is no attribution of...
I came across a very odd situation and I wonder if anyone else has ever seen it. I usually make tax install payments every quarter using T* bank's online system, and there is a payment fee associated with it. While reviewing my bank account transaction history for 2022, there were 4 fees charged, but only 3 install payments made. I checked CRA, and there were 4 records of install payments. So that means the bank forgot to deduct one install...
I am an investor in a limited partnership held in a non-registered account. The distributions from the LP are reinvested by my brokerage. I need to calculate my adjusted cost base.
I understand that, if distributions are NOT reinvested, the formula for ACB is: Cost Paid minus Distributions Received plus Net Income from the T5013. (Net Income = Income/Capital Gains minus Losses/Expenses).
But if distributions ARE reinvested, I assume the formula...
I'm trying to understand the details regarding ETF distributions.
As I understand it, there are some distros that only change the adjusted cost base (ACB), and nothing else.
If that's the case, then what happens to such a distro if the ETF is held in a registered account?
I assume that registered accounts don't track the ACB, since capital gains aren't tracked in a registered account.
Does such a distro simply have no effect at all if the ETF...
Let me begin by saying that I have never filed a final return for someone and am not well versed in the mechanics of such. The question I am about to ask seems kind of like huh, why would want to do that of a thing but here goes.
Let's use an example of a JTWROS direct investing account with 1000 shares of BCE in it owned equally by two spouses. After the first spouse dies, can the 500 shares (i.e. their half) that the deceased owned be...
With a sale of a mexican condo, can the capital gains tax that will be paid to the Mexican government be used as tax paid regarding the Foreign Tax Credit calculation? There is a tax treaty with Mexico so presumably the answer is yes. On Sch 3 there is a section for foreign property (stock or otherwise) disposals and a spot to note the foreign tax paid/withheld. We of course are trying to avoid double taxation.
I received a a fine of $2500 fine + interest, for 2021 tax year after filing my last 3 years recently.
I had an accountant file for me but he failed to mention there was a penalty for late filing of T1135 & ticked off the box stating I hold more than $100,000 in foreign property for 2021..
I likely could have gone the voluntary disclosure program route prior to filing but I was not aware since I had paid a tax professional to take care of my...
Looks like after being an employee for decades I might start IT consulting business.
I'd like to clarify a few things here, hoping to get your feedback and advice.
I'd like to understand the next steps and how to set everything up correctly.
I did some reading, but still have lots of stupid questions.
I am in my 50s, have a spouse, who's working part time and will help with the business, so she's expected to get paid and 18 yo son, who...
So let's say we have tax bracket A for income below $50K, and tax bracket B above it.
Furthermore we have for tax bracket A -- A-int% as the tax rate on interest and A-div% as the tax rate on dividends.
Let's also have B-int% and B-div% in tax bracket B.
So assume I have $60K of income, $10K of it in dividends and $50K in interest.
How is the tax figured out because if I stack the income so that the dividends are at the bottom, I will pay...
I plan to leave Canada this September to take a full-time job in Hong Kong. And
I will probably stay in Hong Kong for about 3 years and return to Canada in early 2027. During this period, I will live in Hong Kong, I won’t own or lease a home in Canada and I have no family member living in Canada. But I will keep my Canadian RRSP and health insurance (though I may never use the insurance...)
I am Canadian PR but not Canadian...
With possible strike of CRA workers, I decided to file today. I owe a few $$$, but don't have to pay until some time in May (forgot the exact date!). My accountant , better half looks after that anyway :)
I’ve always done my tax returns by myself. However, 2022 is different; it is the first year during which my wife and I are both fully retired. I did my tax return with UFile (but still waiting for those T3) and I am thinking of having an accountant look over it before I file with the CRA and Revenue Quebec. Wife says “Ask your friends for a recommandation of a good accountant”. My reaction is “What good is that? My friends probably know only one...
After filing taxes, i was notified that next year I need to pay instalments , because , for this tax year , I should've pay to CRA around 9K.
I never owned so large amount and most likely it happened this year because I quit job in one company, started to work in another one, got signing bonus etc. So, it's 1 time event.
Question... do I still need to pay instalments as per CRA NOA?
Can i call CRA, explain situation and ask them not to pay?
I decided to give up my car for various reasons but principally because I am not a young fellow anymore. This leaves me with a parking space which is part of my rental for my apartment. I believe I can rent it out without violation of my lease for about $250/mos on a cash basis. Thing is, is this taxable?.
About a year ago, I bought a Canadian domiciled ETF at IB for the first time. At year end, it had a large non-cash (phantom) capital gain distribution.
When I looked at the T3 from IB for the ETF a few weeks ago, I noticed that the non-cash distribution wasn't included. I sent a message to IB support and, after a few unhelpful replies, finally got this response:
Due to system limitations, Interactive Brokers is not able to process non-cash...
if you get audited for your medical expenses (seeing a therapist), is it sufficient to show the CRA your receipts. Or do they cross check your receipts with the interact transfer amount that you paid from your bank to the therapist?
The reason i ask is because i have more receipts than what i paid out from my bank...i think i paid in cash a few times but cant remember...jsut wanna make sure im covering my ass and how...
I left my taxes till the deadline...stupid I know.
I changed my phone number so I need to call CRA for them to reset my CRA account. No one picks up and I've been trying for weeks.
I usually use wealthsimple and connect to CRA so it pulls all my slip info.
Should I wait until the strike is over to get access to my CRA account? I dont know how I would go about finding copies of my tax slips and I'm afraid I'll make a mistake if i do it...
As Executor I am preparing a Final Return for a relative who passed last fall. When I go to print out the return, if I just file the return that is required, it is the condensed return. I am thinking I should probably file more details (such as including Schedule 3, medical receipts) rather than deal with CRA asking why things don't agree with the info they have on file. I am allocating income between the Final Return, the Rights Return and the...
This procedure of filing taxes is going to kill me :o
In 2022, My wife quit her job in bank and started new job in insurance company. Both jobs have DC pension. After filing taxes, I noticed that combined Pension adjustments are $45,294 (Box 52), however, RRSP contribution room for 2023 is $30,780! So, does she has overcontribution for almost $15K?!
What should we do about it? We cannot even withdraw $ from DCPP!
She also contributed another...
The question may be silly, but hopefully it's not.
I moved back to Canada at the end of June 2022 after over 30 years living outside Canada. I'm a Canadian citizen who was a non-resident for tax purposes during my years spent living abroad. I was most recently a long term green card holder until I surrendered my green card after moving to Canada with my family. My wife is a permanent resident of Canada.
Will a Canadian citizen's (also a Canadian resident, no US citizenship) US stocks subject to US estate tax upon death in any of the following situation?
1. US stocks held under a single name account at a Canadian brokerage account
2. US stocks held under a joint account with right of survivorship at a Canadian brokerage account
If positive to any of the above, what's the US stocks assets value exemption or credit (if any) is available before...
Hi Everyone,
I started day trading futures last year and have to report to the CRA. I am lost! Can anyone please provide any information on how to report properly? Vague, I know, but I am very new to this and don’t know where to start. Any help would be greatly appreciated.
We moved back to Canada in 2022 after living for many years in the US. The questions below pertain to US tax rules. I'm asking here in case anybody has experience with this situation.
When filing form 1040NR after surrendering our green cards in 2022 does the tax rate applicable to a 1040NR filing override the initial tax withholding rate for lumpsum and annuity payments received from tax deferred accounts such as 403b accounts? In other...
After filing taxes on CRA NOA appears:
- Total payable minus Total credits 9,033.00 DR
- Arrears interest 8.91 DR
CRA also wrote:
If you have not paid this balance, you can avoid additional interest charges by paying the full amount by May 24, 2023
1. Why I have to pay Arrears interest , my understanding if I pay what I own before May 1, I shouldn't be charged any fees?
2. If I pay full amount before May 24, I won't be charged any additional...
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