Questions tagged [canada-revenue-agency]
The canada-revenue-agency tag has no usage guidance.
100
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Is the Canadian capital cost allowance applicable in the year an asset is sold?
My company sold an asset near the end of the year. Can I claim CCA for the portion of the year the asset was in use? Based on my understanding of Schedule 8 Part 2 Note 18 and 19, this does not seems ...
- 101
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31
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In which direction should a Return of Capital (ROC) affect the Adjusted Cost Base? (Canada, CRA)
I'm trying to accurately track my Adjusted Cost Base for a few different mutual funds, and one of these funds has reported a negative amount for box 42 of the T3. -- this cell reports the Return of ...
- 511
3
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42
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Reduce income tax payable in Canada for an individual taxpayer
For the 2023 tax year, in Canada, how can I reduce my personal taxable income/taxes payable on my T1 tax return? I know I can use my RRSP and a spousal RRSP as a deduction against taxable income up to ...
- 131
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1
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52
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Instalment interest calculation in Canada for individuals
I made no instalments payments in 2023 as I thought my net tax owing in 2023 would be below $3000. I received instalment reminders from CRA and I ignored the emails. Now, I believe my net tax will be $...
- 131
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0
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42
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Can you withdraw capital gains from a stock sale and still deduct interest on the original cost basis?
Say you borrow 50k and buy 100k of shares.
Then the stock rises to 100k
You sell half and cancel out the loan, but also have 50k of capital gains.
If you withdraw the 50k gain to maintain the original ...
- 21
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1
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172
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PST Canada on software development to be used by BC company
A quick question to sole proprietors - if I provide software development services, do I need to charge Provincial Sales Tax (PST) on them (living in BC, companies that I work for are in BC as well).
- 113
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62
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Tender Offer from Canadian Company as a US investor
I am US investor that holds shares in a Canadian company inside of my ROTH IRA. This Canadian company has recently announced a tender offer at a higher price then the current market price so I am ...
- 111
2
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1
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167
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(canada corporate tax) Assets dont add up to liabilities and equity due to rounding errors. How to fix?
My accounting software (waveapps) and all my invoices/receipts/bank statements rounds up to the cent. But all of the underlying T2 schedules and forms from the Canadian Revenue Agency are rounded to ...
- 511
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31
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How to apply Canada's superficial loss rule for multiple sales?
I know that a capital loss cant be claimed if you repurchase the asset within 30 days of the sell date.
DATE ACTION SHARES TICKER CAP GAIN
1. Jan/01 BUY 1,000 MSFT -
2. Jan/...
- 1,570
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1
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309
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When is interest incurred while trading on margin deductible in Canada?
To clarify my understanding of margin loans in Canada: the interest expense incurred while trading on margin is deductible, as long as the stock pays dividends, right? Also, if it is deductible, would ...
- 1,570
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21
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Calculating Foreign Exchange Capital Loss on Margin Loan Repayment
Let's assume I convert 10,000 CAD to 5,000 USD and hold it for one year. During that year, I also make some trades using money borrowed from the brokerage firm (i.e. trading on margin). Afterward, I ...
- 1,570
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46
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What legal dictionary does the CRA use for business and tax terminology?
I am currently looking for the technical definition used by Canada's Revenue Agency for these words:
Payment
Capital Debt Obligation
To determine whether payments made towards my margin loan in my ...
- 1,570
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2
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85
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How to calculate capital gains cost basis with delayed forex conversions when trading in USD in Canada?
Scenario 1: Immediate FOREX conversion
➤ On June 1st, I purchased stock ABC with a cost basis of $100,000 USD. The exchange rate on the day of the trade was $130,000 CAD.
➤ On June 10th, I sold stock ...
- 1,570
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1
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2k
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How is Canadian capital gains tax calculated when I trade exclusively in USD?
99% of my entire net worth is denominated in USD, and I only trade in USD stocks & bonds.
Does Canadian capital gains tax only trigger when I attempt to convert those gains/losses into CAD? In ...
- 1,570
2
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0
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97
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Tax obligations for deemed non-residents in Canada
I live (and I'm resident) in a European country (Austria, that has a tax agreement with Canada) and spent 8 months in Canada last year (2022) due to a research stay (I worked on my Master Thesis in a ...
- 230
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45
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Tax deductible expenses in Canada when moving for work
My husband and I moved for work in Nov. 2022 from Ontario to BC. We own a home in Ontario which has been vacant since (could not be rented due to slow demand in winter time although we had been trying)...
- 175
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1
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79
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Canadian FHSA to RRSP after 15 years
I am a Canadian Resident Tax Payer.
I regularly max out on my RRSP contribution room.
I never owned a home, I have been renting because I move around a lot because of work (Canada & USA).
I am ...
1
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1
answer
65
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What time period determines the long-term capital gains tax for foreign individuals in Canada?
Let's say I am either a resident of the US or Mexico. If I have a stock I have held for more than 12 months while abroad, and then sell it within the first week of my arrival in Canada, would it be ...
- 1,570
3
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1
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164
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Payments to CRA don't count toward your balance with CRA until you file your taxes?
I had a lot going on in the past year, so instead of filing my 2021 taxes on time, I paid what I thought was likely to be in excess of what I would owe. I did this before the filing deadline.
I just ...
- 173
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553
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Rental income: What distinguishes co-ownership from partnership?
I own a condo unit with siblings, which we rent out. The unit was purchased for eventual habitation by parents, when they are older and need to be close. We are still paying mortgage on it.
Canada ...
- 173
3
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2
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990
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How do I contact the IRS about my tax return from a non-US phone number?
I am a Canadian living in the US temporarily. I filed my taxes and got my tax return, but the Canada Revenue Agency (CRA; the Canadian equivalent of the IRS), requires that I get some "proof"...
- 151
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1
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384
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Is a depreciation claim on a rental property basically always worth it in Canada, given stable income?
As I understand it, in Canada (unlike the US) there is some freedom in how much depreciation expense you can claim for a rental property every year, from 0 all the way up to 4% of the yet-...
- 153
3
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1
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128
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Is the RRSP Contribution period 12 months or 14 months?
Assuming a clean slate (i.e. no carry-forward contribution room) I always thought the one could make their RRSP contribution any time within the calendar year + 60 days after the end of the year.
If ...
- 312
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1
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138
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How much must one pay tax in Canada if received income from Switzerland?
I am a Canadian Citizen, who lived and worked in Switzerland for a full year. During that time, my only source of income was the company I was working for there. Swiss government deducted a particular ...
user68310
8
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1
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418
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Does Canada respect the tax-free status of National Savings certificates for residents who left the UK?
I know Canada and the UK have a tax treaty that is designed to prevent double-taxation. But I don't know if it extends to honouring the tax-free status of government-issued savings certificates.
...
- 181
2
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2
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462
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What happens if I don't claim all installment payments on my Canadian income tax return?
The Canadian income tax return line 47600 is for "tax paid by installments".
Assuming I overpaid, if I enter less than the amount I actually paid (making the total owed or refunded be zero), ...
- 1,566
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1
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141
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Canadian Taxes: Can I claim the full flat rate (currently $23) for a meal even if the meal costs less?
Here's the link to the CRA website but it doesn't seem to specify this. It seems to say $23 but I am not clear on this and it would seem odd to me to claim $23 for a $10 meal. Thanks in advance.
https:...
- 11
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71
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Paying tax on rental property in UK as a Canadian resident
We left the UK in 2013 and have rented our apartment to friends and family ever since.
We make almost no money from the rental, it barely covers costs and have had to pay out for repairs since we have ...
- 11
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2
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942
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What are the risks for a Canadian opening a Delaware corporation?
I am a Canadian, living in Canada, born in Canada to one Canadian and one Canadian/American parent, which makes me an American "Person". This means I am responsible for filing and paying ...
- 109
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1
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107
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I'm being asked for installment tax payments, though I'm a salaried employee. How do I make the notices stop?
I'm in Canada.
For the past several years, I worked as a freelance contractor. Since January, I have held a full-time position.
I'm certain that I don't owe any income tax. My pay is subject to hefty ...
- 316
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1
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136
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Canada: province of residence on December 31 for emigrants
Page 1 of the Canadian T1 asks, "Enter your province or territory of residence on December 31, 2019." If I emigrated from Canada during 2019, what do I enter, and why? Specifically, are there ...
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1
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139
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Received lump sum payments for OAS, GIS application (for last 3 years) with one T4 slip in 2019. How can we still qualify for "refundable tax credit"
My uncle & aunt in Canada applied for their OAS (Old age security) & GIS (Guaranteed Income Supplement) & Allowance payments in January 2017 and they were qualified to receive all benefits ...
- 185
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1
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93
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Filing taxes for Canada after becoming non-resident
I left Canada for SE Asia in January 2020, and this will be first year that I'm filing to the CRA from outside of the country, so there are a few things that are unclear to me. I'll probably talk to ...
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99
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Will CRA suspect, if you never filed and now retroactively files taxes?
Someone in family employed for past 15 years, but his income never outstripped ON's Basic Personal Amount. It's $13,229 in 2020 He just found today if even though he never had paid any tax, filing ...
user40269
2
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0
answers
67
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Revenue Recognition, Foriegn Currency, and Exchange Rates
I live in Canada, and run a small hobby website (under a sole proprietorship) which earns advertising revenue from various sources. Some of that is paid in CAD, some in USD, and some in EUR, etc.
My ...
- 206
2
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1
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74
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Canada Tax work space in the home expenses with no income (T2200)
I'm trying to assess if I can claim on the work space in the home when I'm not getting income from my company.
There's a line that makes it seem like I cannot, though I might be reading it wrong.
...
- 123
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1
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180
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Gift amount allowed for directors in a company in Canada
What is the maximum amount can a small business owner give a director in their corporation as a gift? We are in Canada.
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227
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What does it mean to reduce tax on Lump Sum payments, rather than Salary?
See screenshot from the CRA T1213. In requesting to reduce the tax withholding from an employment payment, you can select either 'Lump sum' or 'Salary'.
What does "Lump sum" mean? How is it different ...
user40269
3
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0
answers
166
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Will I get trouble with CRA, if I withdraw yearly maximum Capital Gain without paying tax in ON for many years?
Assume I get 0 income and my Capital Gain doesn't fall. I live in ON. Call F the maximum federal ($12069 in 2019), and P the maximum provincial ($10582 in 2019) basic personal amounts. Retirement ...
user11761
3
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Does money spent from lawsuits get reported in tax?
I had the unfortunate experience of taking my landlord to court. We eventually reached a settlement where I got some money. I strongly believe I should have gotten more and have evidence to support ...
- 264
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1
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144
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Can you legally increase your TFSA contribution room over the government's provided maximum ($63 500 in 2019)?
I saw this idea in Reddit comments by u/differing:
I often wish I invested early in the weed stock bubble in my TFSA, not so much for the returns but more to supercharge my TFSA room and transition ...
user44213
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0
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324
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Is it possible to export GIFI from QuickBooks Online?
I use QuickBooks Online for my business transactions. Now I need to do corporation tax return and I want to use UFileT2 for this.
So I need to import data to Ufile. For import I need to have GIFI ...
- 740
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323
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Are friends and family discounts or employee discounts taxable?
I recently read this article which says in Canada:
"barter transactions are only taxable when the goods or services you're giving up are of the kind generally provided by you in the course of ...
- 2,592
3
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0
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119
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Is there a way to transfer a cultural donation tax receipt? (Canada)
Canada specific question.
My father is planning on making a cultural donation to a museum. He will receive a 100K tax receipt for the donation. My marginal tax rate is significantly higher than his, ...
- 2,592
4
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1
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101
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Employment travel expense tax deduction
I am currently located in Ontario, Canada. I work full time as a security guard and am required to regularly secure a client's building. According to the Canadian Revenue Agency link here, anyone ...
- 171
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112
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How do I find out what are the min and max withholdings from each paycheque?
Gill, Madura. Personal Finance, 4th Canadian Edition 2019. p 86. Emboldenings are mine.
Taxes Paid on Earned Income
Your income is subject to personal income taxes, which are taxes imposed on income ...
user40269
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405
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Can GST tax input credits be claimed for Meals and Entertainment which are 100% deductible for income purposes?
Typical meals-and-entertainment operating expenses for business are limited to a 50% deductible towards income calculation. There are exceptions. The rules listed by the CRA allow higher percentage to ...
- 511
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176
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Deducting your own rent you incurred while renting out your own place
Person X wants to earn some extra cash
They rent out their condo for $1400 a month.
They need somewhere to live now, so they rent a basement suite for $1000 a month
Now they make $400 a month profit
...
- 273
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45
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Made a mistake reporting total income on T1 tax forms
This is a bit embarrassing but apparently, I made a mistake on my income tax return. In particular, the "total income field". In my first tax return(2017), I thought this was "monthly income", but ...
- 11
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410
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Can the CRA peek into the amount of a Canadian bank account forthwith?
I mean without any search warrants or court orders.
I ask because for the 2018 tax year, my brother in Grade 12 earned a total income of $500 CAD from only interest. The bank issued a T5 statement ...
user40269