I'm taking over a small biz through a vendor take back-style deal while working my full-time job. The owner of the small biz will start by paying me a salary and giving me equity upfront, and I can buy add'l equity by hitting certain milestones.

I want to be paid in the most tax beneficial way. I already pay high taxes in NS on my 9to5 salary, and don't want to enter a higher tax bracket with this side hustle. Do I sole prop? Incorporate? Create a hold co?

Of note: my partner is a freelancer/self-employed. I wonder if he could work under the holdco that we set up?

I'm not great at taxes. Halp!

I moved to the US for work 6 years ago and my spouse and I have both been receiving W2s and some savings interests + stock dividends that didn’t get reinvested.

I haven’t filed Canadian taxes since (2019).

Now, I realize I needed to file Canadian taxes as well but life has been chaotic. I’m finally trying to catch up to filing the Canadian portion.

I’m reaching out for guidance on what I need to fill out? Any assistance is appreciated. Thank you!

For:

Non-Resident Worked in Canada 25 years before returning to the Netherlands to retire. Received OAS, CPP, and a private pension. Died in her 90's in 2023

Last year, using TurboTax for calculations, we submitted a paper 5013-g-23e, with Schedule A, B, and C with all all tax slips.

As submitted, we received a refund of $13.36, as filed, with absolutely no documentation or notice of assessment.

A week later we received a re-assessment with only a summary of income and amounts withheld, with the tax payable correctly calculated exactly as done on Schedule C.

However, they state that the account balance is $2,878.36 including interest payments, with absolutely no other information. It appears that they have neglected ALL tax credits and information on the T1 after line 77, except for the $4088.06 paid on line 48200(176)

Finally, they have not stated to what time period the interest rate applies so I can't even appeal that intelligently. The initial return was submitted in July of last year, and the assessment and re-assessment did not arrive until the third week of January, so the dates if interest payments are important. It's supposed to take 8 weeks.

So the problem is that I need to appeal this arbitrary assessment, with no real information, other than guesses, of what their objection was to the original filing.

I should add that the executor does not speak English, lives in the Netherlands, and although I am the Representative for Offline Access the CRA will tell me NOTHING because I am not the executor. The idea was that I would spend the time on the phone because having someone not speaking the language on hold for an international call for 90 minutes is just not feasible. There isn't enough in the estate to spend a lot on an international tax lawyer.

Where do I go from here?

I need to fill in either a t4a or t4a-nr for a sub contractor that was on a work visa that worked for me.

Work visa is a non resident so I’m presuming t4a-nr?

Thank you

for the 25% us tarrif on canadian imports, does that only apply on physical goods imported into the US? what about services provided by a canadian company to a US company?

Hi Everyone,

If anyone can please help me in understanding for any possible issues towards my Citizenship application in future

Filed US and Canada taxes both- Lived in Canada but filed my taxes in US as well since my wife lives there. There was no tax I was supposed to pay in US since I already paid my taxes (higher) in Canada

Question is- Will there be any problem towards my citizenship application, if I file my taxes in Canada and US both

A vacant beach lot has been floating through my family for 70 years. My great grandfather acquired it as payment for an unpaid debt, my grandmother inherited it from him, in 2016 my uncle purchased it from my grandmother for 20k (fair market value), and he subsequently gifted it to me in 2021 as I was desperately trying to buy or build my first home.

My municipality is not tiny home friendly and refused to let me develop anything on the 50x60 lot. I went through meetings, site plans, a survey and an environmental assessment with nothing to show for it. I pay about $60 in taxes annually and have no idea what the current market value sits at, but it sits next to multimillion dollar homes and "cottages" on a private road.

A family friend has offered me 100k for the property as he's confident he can cut through the red tape and get a cottage on the lot.

If I were to sell him this lot, what kind of tax implications are there? I believe there would be capital gains, but I'm not sure and I have no idea how to navigate this side of things.

My wife and I are planning to move to Canada. In my current country, taxation is based on the household, but I understand that in Canada, taxes are assessed individually. Specifically, when investing money, any income (such as interests, dividends or capital gains) is attributed to the person who provided the funds. If my wife works while I don't, the investment income will be taxed in her name, even if the assets are held in a joint account.

However, what happens with the savings we accumulated before moving to Canada? I couldn't find any information on this. Any help would be greatly appreciated!

My mom inherited a foreign property in Singapore from my grandfather. She is a Singaporean but Canadian PR and has been living in Canada since I was born. The property comes with rental income of SGD4k a month which she is also subject to taxes on the income in Singapore. She is still currently employed. We are discussing if it is more financially sound decision to sell the place or continue rent it out with an agent who helps to manage this professionally since she will retire in a couple years and this could be a good supplement retirement income. Anyone could enlighten me on the tax implications on this. 🙏

I partially own a BC corp and I am a Director there.

Last year, I moved to another country that has a tax treaty with Canada - and Salaries and Director's Fees are taxed in the destination country rather than Canada. Canada does not withhold any tax.

That being said, my accountant and I are not sure where this income would be reported in Canada. Is it on a T4? or is it in a NR4? Quite confused currently.

Research on CRA website is fruitless. CRA does specify that Director's Fees to non-residents who performed services in Canada should have T4 reporting, but does not specify non-residents who perform the service out of Canada.

It seems T4 is not required for non-residents where nothing was withheld and no service was rendered in Canada. And Salary/Director's Fee doesn't seem to fall under NR4 either.

Any help would be appreciated!

I am helping someone (who is computer/tech illiterate) with putting together a voluntary disclosure to send to the CRA. From my understanding you only get one shot at doing this and everything needs to be included in order to be accepted.

I want to make sure he has everything necessary to send but I myself am a little confused on everything that needs to be included, besides the application form and the (estimated) amount owing. I am wondering if anyone has any insight into the correct forms needed - for reference it is to correct unreported income for a past tax year. Is a t1 adjustment form sufficient to show the correction needed?

Its my first year contributing to an rrsp. Can I file my taxes prior to getting the rrsp contribution receipt in the late part of March?

I am hoping to get my taxes filed as soon as possible for a possible mortgage pre-approval that I need the express NOA for.

As an accountant with a considerable amount of tax experience, I personally have never understood the rationale for only taxing half of capital gains while fully taxing other types of income. I've heard people try to justify it in various ways but I haven't heard anything overly convincing. The most common one I hear is "it's a tax on inflation", which may sound reasonable at first blush, but here are some reasons why I don't believe that's legitimate:

- Some capital gains might have a direct link to inflation but to broadly link capital gains to inflation is inaccurate. For example, the TSX was up over 18% in 2024 and annual inflation was only 2.4%.

- Say there are 2 people who are concerned about their money being devalued by inflation so they each choose to invest their money - person A invests $100 in a GIC and person B invests $100 in a stock. If A receives $10 in interest and B's stock goes up in value to $110 - why should B only pay half the tax that A needs to pay?

- Businesses in general raise their prices annually and they are taxed on the additional income.

- Many jobs get some sort of annual pay increase, with part of the reasoning being because of inflation and they are taxed on the additional income.

- If someone chooses to hold cash and that cash declines in value due to inflation - do they get a tax deduction? No.

Another common explanation (that's a bit easier for me to believe) is that it provides an incentive for people to invest. Although that's a true statement, why is it specifically capital gains where they provide the investment incentive? It's not like capital gains are the only investment related topic where tax comes into play. If we want to provide incentives for Canadians to invest, there are many different ways to do that. We already have tax incentives like the LCGE and Venture Capital Tax Credits. And the 50% inclusion rate doesn't only apply capital gains related to Canadian investments - does the Canadian government want to give people a tax incentive to invest in foreign assets (i.e. Tesla or Apple shares)? I doubt it.

It doesn't seem fair to me that if you work your butt off at your job and make a considerable wage, 100% of it gets taxed but if you sit back and buy a stock that triples in value, only half the gain is taxable.

Hello all,

I recently moved out of the country after being a student for multiple years (never worked, and I am an international student). My move date is at the end of January 2025, so I wanted to know how I should be updating this move date when I file my taxes this year? I understand that I will have to call CRA to update them, but what about revenu Quebec?

Anything I need to keep in mind/know about this process? The more info, the better! Thank you in advance!

Hi! I’m a Canadian citizen doing residency training in the US. I have been here since June 2023. Working on filing taxes and now I’m concerned if I have to pay taxes to both US and Canada. I have received income only from the US hospital I work in. I do not have a home in Canada (other than my parents) and no other significant ties, other than a drivers license.

Do I need to pay taxes to the US and Canada ?

Thank you

Hi, my 5 year old son is autistic and started kindergarten this year. He qualifies for the disability tax credit. His needs are primarily language related so he didn't qualify for an EA in public school. As he would be unable to function in a mainstream classroom we decided to serve him to a private school where we could provide the one on one supports he needs. He qualifies for an ISP worker for after school, but we pay the salary for the school hours. Can we claim this on our taxes? It comes to about $25k annually.

I got a notice of debt that I owe $348 because earnings not deducted. I was on EI but not anymore. What does this mean? I’m a bit confused. Thank you!

Hi all! I'm trying to use CRA web forms put together T4A slips for scholarships and bursary amounts for students, but it won't allow me to create a T4A slip for only scholarship/bursary income - it requires one of 6 other boxes to have an amount in it (pension, lump-sum payment, self-employed commission, income tax, annuity, fees). None of those apply because these slips are just for reporting box 105 scholarship income, but the form won't process without them. Is anyone here experiencing a similar issue? Is there something I'm missing? Do you have a work-around? I'm extra confused because I don't think I've encountered this in previous years, although maybe I'm misremembering.

Also - is it just me or did there used to be an option to print off a set of draft T2202s and T4As before submitting? In previous years I'm pretty sure I've used that option to run my work by a couple of other people in my office and catch any mistakes before submitting. That doesn't seem to be an option anymore, although maybe I'm missing it? It's not the end of the world but it is a little frustrating.

We refinanced our previous principal residence (in Ontario) last year to get a sum for down payment to buy a new principal residence (in Ontario), and turn that previous home into rental. Let's say from 200K original mortgage balance to 300K mortgage balance, the extra 100K goes to new home down payment. I now understand that the interest on that extra amount (100K) is for personal use and cannot be tax-deductible. My issue is since the refinanced mortgage is a big chunk (300K) now, how do I separate it to claim what is the interest expense for the rental property? Do I claim 2/3 of my total interest expense as rental expense? Is there a good tool / calculator somewhere that helps with this? We didn't know this "personal use" part is not tax-deductible, had we known it maybe we should have asked the bank to split the mortgage into 2 pieces for easy tracking... Also, because of the refinance, the interest rate and amortization changed (say from 1.5% interest to 3% interest, from 25 years to 30 years), do we have to calculate the 2/3 of 300K mortgage interest, based on 1.5% instead of 3%? Thanks for any guidance.

Hello everyone. I left the country in June of 2024 and received benefits from the CRA throughout the year, which i shouldn’t have received as a non-resident. They’re now asking for 1,000 dollars back. I have no issue paying this as the fault is on me, i didn’t know i had to be a resident.

I was just wondering how I should go about with paying the amount back. I know it’s a relatively small amount, but it’s not something i can pay at once. I’m aware of payment plans, but i’m not sure how they can be set up. Do I have to call the CRA, or can I set one up myself on my account?

Thank you in advance!

Please respond to the Executor’s/Administrator’s request for your information.

This relates to the Schedule 15 and Trust Disclosure Rules, which has snagged Estates of those who died more than 3 years ago. When Bare Trusts were finally exempted, the legislation overlooked the (literal) tens of thousands of Estates who are still looking for beneficiaries, or held up by administrative factors.

This is not tax advice, just a reminder that it is the Administrator’s/Executor’s duty to ensure the Estate is compliant with all tax laws, including the Trust Disclosure Rules. Ultimately, it’s in your best interest (if you’re a beneficiary) to cooperate, as any extra costs or fines for not complying is taken out of the Estate (what you’re going to inherit).

Obviously, this is assuming the Executor/Administrator is competent in their role. For the sake of brevity, I’m not going to go into what-ifs. They can be discussed with estate lawyers and accountants.

(Implementation of the Trust Disclosure Rules can be debates separately. I personally think it was fumbled and caught up too many taxpayers.)

(This is just my opinion from working in this field, but I’m interested in reading yours in the comments)

I owe some $$ to the government. When I sell my house I'd like to enter into a repayment plan with the CRA. I want to avoid them taking all my equity if it's possible.

Now say I do this. And then spend say $10,000-20,000. If I'm unable to pay the arranged agreement, will the government consider that 10-20k i spent to be fraud?

I’ve recently moved to Canada from the US and I have a mix of RSU and stock options that have been granted before coming here and are continuously vesting since I came here. As clarification, I’m not asking any advice on US side of tax, so no need to consider that here.

I’ve read the government’s documents on this, but I’m still confused on a few things. Appreciate any help!

1. For RSU, for tax purposes, it’s treated as an employment income at the time of vesting based on the FMV of the stock on the day of vesting, correct? So, if I do not sell any of these, I’d need to pay taxes out of my pocket and there’s no way to defer tax liability even for the value increased from the grant day price (the stock price went up 4x+ between from the grant date to the vest dates in my case)?

2. If above is all correct, what happens if the sale price (FMV) of the stock went down from the vest date? Do I claim tax benefit as capital loss?

3. For stock options, I’m not sure if proceed from them is eligible for the securities options deduction. I will be selling the stock at the same time when I exercise them, so there’s no need to consider the capital gains here. The company is publicly traded in the US, so it is not CCPC. The options are granted on or after June, 2021. So to my understanding, I have deduction to the 200k limit, but I’ve read several conflicting information.

4. If I’m eligible for stock option deduction, 200k limit is based on the FMV of the stock at the time of granting, not vesting? Let’s say the grant price is 100CAD and vest price is 400CAD. And I exercise them when the FMV is 500CAD. This means I get 400CAD of proceeds per share at the time of option exercise/stock sale. In this scenario, I’m eligible for the tax deduction up until I exercise and sell 2,000 shares meaning I can get the tax deduction for 800K CAD per year (only 400K is taxable)?

Sorry this is quite a long post, but appreciate any help. Thank you!

I'm on disability my mother passed away she left me a  Hanson Trust my sister is my trustee she received a letter in October sort of like this. so my sister immediately called my tax preparer and he said oh we'll fix that you don't have to worry. now my sister has received more letters about what is going on. my sister paid the taxes for my trust. we gave all the information to the tax preparer. I'm just scared. anything to do with the government I get scared. 

I have some mental disabilities and anxiety

https://preview.redd.it/4v2ijx4u4ege1.jpg?width=1536&format=pjpg&auto=webp&s=8bd5e0558fa936a81ca4fb56eac3344a39243dbe

I'm working towards moving to EU to live with my partner as soon as my current contract ends. Regarding Dispositons of Property, is the definition of property basically any owned asset (eg,. personal belongings, real estate, shares, investments). Is this correct? I don't own any real estate, no shares or other monetary assets other than general savings, no vehicle (and I wouldn't be importing anyway), etc. I am certain the property I am bringing over is well under the $25000 dollar limit mentioned here. It is not clear what you are supposed to do if you are under this limit. Is there a special step in reporting this?

Also, as far as I understand, if I am not receiving money from a Canadian source (eg. a remote work job, owned property, etc), I do not owe any taxes to the Canadian government during my time abroad. If this understanding is correct, do I have to constantly keep informing the CRA that I am abroad every year around filing time, or is there some other process? If I am misunderstanding the above, what taxes would I owe the Canadian government while abroad?

Thank you very much in advance for all helpful answers or pointers.

This week I received a NOR that include penalties for failure to submit my T1135 in 2021 and 2022. I moved to Canada in 2020 and maintained my foreign bank accounts, which contain money above the T1135 reporting threshold.

I was notified of my (suspected) failure to submit T1135s by CRA approximately 1 year ago, probably because I incrementally wired money into Canada from my foreign bank account above the reporting threshold. I failed to submit T1135s because I did not pay enough attention in the H&R Block software and didn't think that "foreign property" essentially meant all assets abroad. Ultimately, I was overconfident in my ability to navigate the software, should have known better and hired someone to do my taxes for me - as it now turns out, a costly mistake. I mostly had money sitting abroad in a savings account, which, at the time, generated negative interest when interest rates fell below zero for a while. I did generate a small amount of income through dividends in the relevant timeframe.

While I own my reporting failure, and I'm aware that the CRA doesn't differentiate between an intention to hide foreign property vs. ignorance combined with carelessness, I was hoping that perhaps an objection could lead to a more proportional penalty. I'm also aware of the taxpayer relief option.

I'm a bit lost as to which avenue to take, or whether I should just take the L. Are there any reasons not to object? Do I stand to lose anything from doing so? Should I immediately apply for taxpayer relief? Or both?

Hello,

I'm at year end I'm willing to claim the business portion of the automobile expenses, that I paid during the 2024.
I kept detailed gas and repair receipts along with detailed KMS log, taking into account disregarding any trips to timhortons and from home to on site location.

Based on my understanding, I can claim the percentage of the business portion only of the actual funds spent on autoexpenses for example the percentage is 75% of what I paid during 2024.

so if spent 1000 X 75% = 750 would be eligible to be claimed on the corporate side, I just would like to be complient with CRA rules does this consider be taxable benefit since I am not employee and claiming

employment expenses? is is taxable benefit how to tell CRA that I paid the tax on this benefit?

How to account for this situation properly

should I simply buy another used van and make it under company name and claim 100% since it's strictly business use and have a small sedan for personal usage!

Thank you in advance

Hello,

I moved from Quebec to Ontario in September of 2023. I therefore filed taxes as a resident of Ontario for the tax year 2023. I was/still am renting in Toronto and that was my principal residence.

In Quebec, from 2017 until September of 2023 (when I moved to Ontario), I lived in a condo I owned. I put it on the market in September and it finally sold in March 2024 (shitty agent).

When filing taxes for the year 2024, I need to declare the sale of this property. Does it indeed still count as a "sale of principal residence"? Will it cause issues showing a sale of principal residence that is in a different province than Ontario, where I filed as a resident for the tax year 2023?

Thanks all for any clarity!

Hi everyone, I would really appreciate some advice on international tax related questions. I am American and worked in Quebec Canada for the last 2 years.

My previous company paid hypo taxes and filed my taxes for 2022 and 2023. After each tax return, I would send them equalized taxes for what they paid in hypo.

I have since left the company, moved back to the US, and need to file 2024. I contacted a firm to help me in Canada, and they’re quoting 4,000 dollars for the fee. 1500 for Canada filing and 2500 for US. This is a lot of money, and I’m curious about two things:

1. Could I potentially file these myself and would they be fairly straightforward to save myself the fees, or is the tax credit situation with the federal US quite complicated?

2. Will my previous company be able to do tax equalization without knowing my income etc. after I left them in October? In short, do you think they’re going to reach out to me and say “you owe us x dollars”, or could I expect them to just leave it be?

Trying to understand my situation before I drop a 2500 retainer and end up paying 4K in total for returns I’m going to owe to my previous company.

Sorry if this the wrong subreddit !