dougd wrote:It's not a question of "believing" anyone. Your comment only said "certain" costs without definition. Given the consensus developed with responses from a number of contributors led me to the conclusion I was barking up the wrong tree. I won't claim the fees.
It's been that way ever since CRA changed the rules many years ago to make interest taxable as accrued. Prior to that people used to hold compound interest bonds in taxable accounts letting the interest accrue tax-deferred to maturity. (Imagine pseudo-RRSPs that some people created in the early '80s out of 30-year GoC strips that yielded 15%.)Brix wrote:Can't seem to find a convincing, authoritative answer to this newbie question.
Probably to appease the folks who benefited from the previous regime. This "quirk" also has some useful tax planning opportunities, e.g. buy a 30-day cashable 1-year GIC mid year and then decide if you want to cash it in late December (to crystallize interest and pay tax on it in the current year) or hold it into the next year (to defer the interest and tax owing until the following April.)My present circumstances happen to be such that this seems far too good to be true, and frankly I can't think of a rationale which would explain why it should be so.
CRA wrote:Term deposits, guaranteed investment certificates (GICs), and other similar investments
On these investments, interest builds up over a period of time, usually longer than one year. Generally, you do not receive the interest until the investment matures or you cash it in...
The amount of income you report is based on the interest you earned during each complete investment year. For example, if you made a long-term investment on July 1, 2006, report on your return for 2007 the interest that accumulated to the end of June 2007, even if you do not receive a T5 slip. Report the interest from July 2007 to June 2008 on your 2008 return.
Note: Your investment agreement may specify a different interest rate each year. If so, report the amount shown on your T5 slip, even if it is different from what the agreement specifies or what you received. The issuer of your investment can tell you how this amount was calculated.
For most investments you made in 1990 or later, you have to report the interest each year, as you earn it...
jf wrote:BUT what bothers me now is that they said that they have no record that the one they sent to the old address has been returned to them. The T4A contains my child's SIN.
AltaRed wrote:FWIW, we have received mail like that many times over the years. The important looking stuff gets "moved" written on it and re-mailed. Anything else we just tossed.
jb007 wrote:According to some posts I read here Canada does not appear to have a gift tax, which is great news. I am interested in finding out more about this and how it work though. For example:
Would we need to include the total amount of the gifts received in our taxes?
also, doesn't large sums of money transfered into accounts raise red flags? would we then need to explain where the gifts are coming from and why?
and is there a frequency rule? ie <1 gift a year?
jb007 wrote:According to some posts I read here Canada does not appear to have a gift tax, which is great news. I am interested in finding out more about this and how it work though.
stick_on_a_carrot wrote:Hi there. My wife and I are contemplating the possibility of renting out our house (only property we own), and then renting an apartment ourselves. I'm just wondering which of the following income tax scenarios would apply in this case.
1) Pay income tax on full amount collected from the rental of our house.
2) Pay income tax on the difference between the money collected on the rental of our house and the amount of rent we're paying for the apartment.
3) Pay no income tax at all since the house in question is our only 'owned' property.
4) None of the above.
Any information would be greatly appreciated.
izzy wrote:As I'm sure you expected the least favourable interpretation will apply for tax purposes.-i.e. alternative no 1 (minus expenses)
If you own no other property on which you claim the principle residence exemption and you don't claim depreciation then alternative no 3 may apply but for capital gains purposes only and just for 4 years unless for example you moved across the country for work reasons (or other reasons which CRA deem acceptable) when you MAY be able to make a case for the principle residence exemption to apply for longer.In this case you should definitely seek informed professional advice as there would be pretty stringent conditions.