My wife moved from US to Canada in her teens (in the early 2000s) and now holds a dual citizenship. She had never worked in the US and was not aware of the need to file US tax returns while living in Canada. We recently became aware of this obligation and are now trying to figure out the best way to go forward.
I have been reading about the following program, which seems applicable:
an elderly relative holds some bank shares with a large capital gain. I want to trigger the gain now because of offsetting medical expenses and to avoid a surprise in the estate.
Call it 700 shares with a value of 70,000 and an original cost of 20,000. Last year I sold 300 shares and declared a capital gain. I bought the shares back so the cost base is now more like 35,000 and the value is still 70,000-ish.
Hi,
I tried posting this earlier, but it didn't show up. I apologize if another post appears. I moved from the US last year. When I was doing my Canadian taxes this year, my tax accountant told me I had to file a T1135 form and needed to list all my US stocks, how many shares I own, their cost, and the highest amount they were worth during the year. I have around 120 different stocks through out the year. Needless to say, it was very stressful...
I am wondering if anyone has encountered a reliable online tool to estimate net employment income in the US. I am a Canadian citizen and am considering a job opportunity in NYC. I am trying to estimate what would my net income be to assess the feasibility of this move.
I've actually consulted an accountant who estimated that if I live and work in New York City, I should expect to retain only about 43% of my gross income. The rest would go...
If I was holding something, not working, and wanted to realize capital gains - does one have to actually sell it? I own HXT, but if I was to sell and rebuy I'd probably just rebuy the HXT again.
If US stocks are held in a TFSA, the dividends do not qualify for the dividend tax credit, but are taxed at the same rate as interest income.
Additonally, they are subject to the 15% withholding tax which can't be recouped by claiming it as a foreign tax credit.
If so, your dividend is taxed 15% plus your marginal rate for interest income. Let's say that marginal rate is 30%. That means the dividend would be taxed a total of 45%,...
If you invest in dividend paying stocks or ETF's through a broker, I assume the ETF company sends you a T5 that shows the breakdown of the realized dividend to indicate which is Return of Capital, so you know what not to pay tax on?
Have you used any? I would like to have a consultation with someone like this before I move from the US to Canada (Ontario)... I have no intention of having someone manage my money (Fee-only would work best), and I would rather not pay $350 an hour... I have a lot of investments in the US (nothing in Canada) and I need to know how I need to approach the move...
I like to keep taxing situation simple. As a result, I want to avoid ETFs that distribute involuntary capital gains that are not within my control.
A related topic is this one:
From my own experience, the ETFs below have issued capital gains that would change the ACB.
XIC
XEF
I got rid of them solely for that reason. I do not want to have an accounting nightmare.
If you know ETFs that have not ( to your knowledge ) issued capital gains that...
As a Canadian Citizen moving to the US for at least 2-3 years, is it ever beneficial to keep your money in a TFSA? According to this thread: , most recommend to ditch it.
Assume any money in the TFSA would be moved to a normal US trading account with no special status. In both cases, any capital gains are taxed exactly the same. However, if the money is left in the TFSA, you (hopefully) build additional contribution room through...
Say an ETF (VCN) holding, bought earlier in 2015, in brokerage account A shows a decrease in book value of ~10% by mid-August 2015.
Realizing that I wanted to hold VCN in an another existing brokerage account B, which holds all other equity-related holdings, I proceed to purchase VCN in mid-August.
When would I be able to sell VCN in account A, without being accessed as a superficial loss by CRA?
1....
I recently found these forums and appreciate the obvious wisdom & experience across the boards. Iwant to see if I have my understanding of the rules around gifts of securities correct.
Assume I own X publicly traded shares that have a significant capital gain embedded.
I want to maintain my exposure to the underlying stock at X shares
But I want to make donation ... so I buy Y shares (Y<
This moves the needle on...
My wife is a born Canadian, naturalized US citizen. We currently live in the US (Indiana). Her father recently passed, and while there was no will or direct monetary inheritance, his house has been sold via an estate lawyer, and after fees/debt repayment/splitting with siblings she is entitled to inherit about $10k Canadian. My question is, what are oour obligations as far as taxes go? I'm pretty sure we're in the clear US since we're...
Having moved to the USA in before 2000, then moved back to Canada, and now coming back to the USA, we are well accustomed to having to report on strange things for the benefit of the IRS. We have been dutifully filling in our 8891 for Cdn RRSP, and TD F 90-22.1, Report of Foreign Bank and Financial Accounts, (FBAR).
Now I find out that there is a new form required since 2012 called 8938 Foreign Financial Assets that seems to be because 2...
If one dies with an $800,000 RRIF portfolio (no spouse) and includes in the will to give $200,000 In Kind of stocks to a charity. The $800,000 is claimed as Taxable Income, but how much of the $200,000 is a tax credit? Would one get the full amount deducted from the taxes of just a portion of the $200,000?
Dumb question time: For NWH.UN shares sold in 2015, do I use the cost base from Dec. 31st 2014 for the tax submission for tax year 2015, or the 2015 Dec. 31st cost base?
I don't know if any of you guys can answer this one--
Let us assume I converted my professional corporation to a holding company when I retired.The retained earnings are invested in GICs and generate $40000 in interest annually.Can I donate the $40000 to charity and deduct it from earnings or is the donation limited to 75% of income as it would be if it was donated personally?
Also can the corporation deduct the donation or does it claim a tax...
My Americain mother died. She is also Canadian and lived for the last 30 years in Calgary Canada. I will receive an amount around 400,000 max from the sell of her estate. I am Canadian but live in North Carolina with a green card and plan to move back to Montreal Canada in the next 2 years. I am planning to keep the money in Montreal until I move back and give a deposit on a condo eventually. Do I have to declare to IRS? Thanks
I have been offered a part-time position on weekends that would allow me to make an additional $21,600 per year. I suspect that a lot of work will be involved in the part-time position, and that I may even have to put in more hours than what was agreed to. (This is only a guess at this point.)
From a tax perspective, do you think it is worth it for me to take on the extra work? Taxes are...
In a somewhat heated political discussion in Watercooler it was mentioned that Trudeau has promised to review income splitting should the Liberals come to power in the` next election.It was even suggested that Pension Splitting might be` in danger.Many of us older folk spent a good deal of mental energy in the old days setting up interspousal loans , spousal RRSPs etc to equate incomes ,especially in retirement,with our lower earning spouses.For...
The assumption with not working is that you're not collecting any government money.
So if I was to take 6 months or 12 months off for whatever reason, does it make sense to take advantage of as many capital gains that you can (within a reasonable amount of tax)?
I've been curious about this since I know there are going to be periods in my life where I'm going to want to take a bit of a break from the rat race to refresh myself.
We send our daughter to a private school. The school says JK and SK are fully deductible as child care expenses. But I'm trying to find confirmation of it on the CRA site and I'm not really finding it. If anything, I find stuff like that indicates that kindergarten is NOT deductible:
1.18 An educational institution may offer child care as well as an educational program. An educational program is considered to be more goal‑oriented than child...
I have both a Canadian and an American account with my advisor. Is it normal to charge the monthly fee seperately in both accounts? I am surprised there is GST on the US acct and charged in US $ :o
This was the first year that I had taxes owing and didn't pay by snail mail cheque. I decided to pay via my internet banking and had 3 choices for payees under the CRA. The first was Past Tax Owed, the second was 2014 Tax Owing and the third was Tax Instalments. I chose the second option and my money was immediately received by the CRA. When I just received my Notice of Assessment in the mail though, it says this: We have transferred $126.10...
My MIL died last year and I am working on her final return. I entered all the info from the various t-slips into U-File and hit the calculate button; total tax payable is zero for 2014.
I have receipts for about $22,000 in medical expenses that I could add to the return, but why bother since the tax payable is zero without them? Should I put them in anyway? Seems like overkill.
I learnt a lot reading this forum and I have a question about a taxing situation.
Context:
I have too much non-registered investments while I still have RRSP/TFSA contribution room.
I should have moved my non-registered investments/purchases long time ago to RRSP/TFSA since I still have contribution space left, but it's not done yet for some investments.
---
My moves in July 2014 :
I did sell VTI/IJS with a capital gain to rebuy US...
We live in a condo and recently bought a house. We will be renting the condo as of july 1st. 2015
If we refinance the condo now, does the interest of the refinance portion of the cono mortbgage be tax deductable? Is condo considered our primary mortgage tll june 30 even though we bought the house and renting the condo on it on july 1st?
I'm often using the EY tax calculator for the current year to figure out what kind of withdrawal rate I would need in retirement to get to a given amount of spendable money.
Just wondering how bad that approach might be or what better tools might exist?
I have no idea what kind of considerations this approach might be missing.
For example, I have no idea what kind of extra tax credits might be available to retirees or seniors that the EY...
CRA phoned to say they will dissallow my 2013 RRSP deduction. They were not altogether clear but sounds like, it is because the receipt is dated as bought in the first 60 days of 2013.
I have always bought my RRSP,s in the first week of the tax year as advised by many intsructional investing guide books. Perhaps my problem is regarding not declaring this buy on the previous years tax return, just so they can carry it forward. I always thought...
Hi, I have a few questions which I'm really curious about. I spent a lot of time typing out these question; I'd greatly appreciate if any of you could help me out. Even if you guys could answer a couple of these questions it'd be greatly appreciated (I'm mostly curious about questions #1 and #3 (I think I know the answers for the other ones - just want to make certain)). Thanks.
1. Say you bought a security for $100 on December 31st and sold...
Over the past months, I've unwound nearly all of my precious metals in the form of coins and bars. Going through the process of selling this stuff really makes a case for the ETFs!
To my questions:
1. Overall, I have a smallish capital loss on all this. In some areas, I have gains, but overall, I have lost money. I have carefully tracked all this on a spreadsheet. That's fine, and what I expected, but am I actually obligated to declare capital...
I just realized that in the 2015 budget there is a small business tax cut, from the current 11% down to 9% in 4 years. Now it's a good thing that there will be less tax on small business income, it means more retained earnings within the CCPC for investment. But what I'm curious to know is how will the reduced non-eligible gross-up and non-eligible dividend tax credit affect me when I withdraw money from my CCPC.
So, I have about $35K each in my RSP and TFSA. In a couple of weeks I should be moving to California on TN status. I'm unsure how long I'll considered a US resident, but it could be for a number of years.
My Canadian income so far for 2015 is $0, and I have more than $50K in Tuition credits.
I got advice to do the following (From Serbinski forum):
a) Cash in RSP to use the tuition credits.
b) Cash in TFSA.
c) Don't purchase investments in...
Trying to get some sense as to which province CRA would classify me as being resident of as of Dec. 31/14:
-- My wife (common law) and I lived 100% of time/had house in Nova Scotia until May 2014.
-- In May 2014 she moved to Alberta for 2-year work assignment. I accompanied (sort of - see below. I'm self-employed/work virtually/remotely with clients).
-- I still own house in NS. Wife and I also lease a condo in AB (both names on AB lease - one...
Is earning income from online affiliate program sales considered active business income or specified investment income? There may be some expenses - as in renting in real estate, marketing, management, etc.. but usually much lower than brick and mortar businesses. I think there is also a new form called 'internet business activities' to fill out as well now.
The one thing that I've never been able to get a straight answer on is ....how should equity options be reported on the T1135 form.
The CRA doesn't have a straight answer.
The Chartered Professional Accountants of Canada also seem to scratch their heads over how to handle options.
Here is how I've defined the four types of option positions that one could hold:
LONG CALL - This position buys the right to purchase the stock. For example, I buy...
Last night, I netfiled via SimpleTax. They asked if I would be paying CRA within 5 days. IIRC, UFile said something about 5 days when I netfiled a different return. Does anyone know what's different about paying within 5 days vs later? AFAIK, I have until the end of April to pay.
I received an re-assessment recently and the unused rrsp contribution amount (B) is now greater than the deduction limit (A). I went thru my rrsp contribution receipts and looks like I have over contributed to rrsp by accident in 2010 and it was not claimed/deducted. I am planning to submit a t1 adjustment for the year 2010 but I wonder if there are better options?
Ugh. It's that time of year again. Does anyone know how you are supposed to enter accounting fees in ufile? It is not mentioned in the interview guide. Also, why don't they allow you the choice of splitting capital gains from stock sales with your spouse like they do with the T3s and T5s? Would save me alot of time. Thanks in advance for any advice.
What is CRA's approach to capital gains in a TFSA if the gains are made through high volume activity, i.e 'day trading'?
In a taxable account this would be flagged by CRA as 'investment business income' and the gains would be taxed as earned income. I wonder if this can be avoided if the 'day trades' are performed within a TFSA.. I am assuming gains!! ever the optimist. :D.
I have recently received the letter from Service Canada telling me that I am officially old :D , and that my OAS was staring. I subsequently received the letter that, due to my 2013 income, all my OAS would be recovered . My 2014 tax return will also mean no OAS for me July '15 to June '16. So bottom line, no OAS payments in 2015. So far so good, this was expected; this is not a debate on the recovery, I'm good with that. .
I was given stock options from my work. I bought them for $0.40. Now when I sold them it was at $0.50, so I made money on it. So I figure I'll have capital gains on it.
But when I'm in Scotia iTrade it has a Book Value column which shows $0.56. And beside that is the realized gains, which says it's a loss. It looks like the reailzed gains are saying I bought the options for 0.56, and sold for 0.50....but I didn't. What is this book...
I ran two tax calculators with 50k. One as non-eligible dividends and one as self employed business income.
Total tax with the CCPC was $6750 + $3100 = $9850.
As self-employment income it was - $11,977.
That's 20% more. I thought under the new dividend credit changes of 2014, it was supposed to equalize these rates but it doesn't appear to do so.
Does this mean it's still better to have business income in a CCPC than self-employed income?
Just printed the Notice of Assessment for my 2014 tax return -- CRA's online service is fantastic.
Looks like my Ontario dividend tax credit was more than enough to offset the provincial tax due. TurboTax said nothing about this. I went through my return because the NoA said CRA had adjusted my Ontario DTC yet my refund was approved in full. So there's more than $500 left on the table. Does anyone know if I can apply that to next year's Ontario...
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