Hi,

I have a question regarding my taxes(Located in Toronto, ON). I am fully self employed, and file 2 seperate T2125 each year for my businesses. I realized that last year (2023), I did not file a second T2125 for one of my businesses because it has been dormant since 2022. I intend to continue it at some point, but not at the moment. It currently still has about 10K in UCC carryingover according to my 2022 fillings, but has no income/expenses or any sort of activity for the year 2023.

My question is, since there is no activity, should I contact my accountant to file a second T2125 for the year 2023 listing 0 income since there is no activity or is it largely unnecessary? Will I lose the 10K in UCC if I don't file for 2023?

Thank you for your help!

Hi all,

During the day I work a salaried, T4 job where I get a T2200 as I work remotely. During the evenings (and some weekends) I operate a Sole Prop (HST registered) where I provide consulting services (tech) to a variety of clients (again, fully from home).

Last year when I completed my taxes using Wealthsimple, in the section for my T2200 I provided the total square footage of my home and the square footage of my office. I provided costs like internet as T2200 expenses and provided that expense number based on the % of the home I was using as an office. In the section for my T2125 I did not provide any expenses for internet as I already submitted that in my T2200.

Lately, I've been trying to understand if I actually am able to submit it as an expense on my T2125 as well because I am technically using it for the business as well. This makes sense to me, however, I am unable to find any documentation on this situation and I don't want to assume. Does anybody have any experience with this?

edit: for some added context, I have a bedroom in my home that I converted into an office. 50% of the time I use it in my full time job, and 50% for the consulting side-business. I do not use this office for anything else

edit 2: sorry, I meant to say I submit my WFH T2200 expenses on my T777. Wealthsimple makes it seem like one form

I have been waiting for my DTC to be approved/granted by CRA, but I am considering filing my 2023 return before the DTC is fully confirmed. Can I obtain a re-adjustment if/when the DTC is done?

A disaster hit my family and home, we have been given financial support from a municipality, $4600 a month. We also may get financial assistance from the province up to 400k less insurance and deductibles.

Is this a taxable event?

It seems like I would be depositing and then withdrawing the money within the span of a month, would it still be tax deductible?

I recently applied for the DTC. I became disabled in 2022, but I didn’t get a family doctor until March 2023. He put on the form that my impairment started in 2022, but like I mentioned he didn’t become my doctor until 2023. If I get approved will they only approve it for 2023?

I'm considering a 4-6 month internship at a Taiwanese manufacturing plant starting in 2025. Will I remain a Canadian tax resident during this period? How would I file my 2025 taxes if I accept this opportunity?

And would I still be able to keep my Canadian bank accounts/credit cards open during this period? Or will I have to close them?

I know that when you donate to say PC charities Loblaws DOES NOT get to claim a tax refund for the donation, unlike what people parrot.

My question is and I will use a real example: Purdys is selling a chocolate bar and donating $2 from each bar to children's hospitals. Is this the same thing as the above? Or do they get to claim a tax rebate for the donation?

Just curious...

Received my NoA today and to my surprise I was charged a $1,000 penalty for being noncompliant. I had no idea mandatory efiling is a thing now after 2023. It was my last return to dissolution. Do you think CRA could reverse this? I will call them today but sometimes the agent you talk to doesn't always know what they're doing.

Edit: thank you all for the information. Appreciate it a lot! My revenue was definitely less than $1M (only around 12K) and net los of $33. I didnt realize the website says "proposed changes" so I will try and see if I can contest it. Thanks so much!!

I was paid some retroactive pay and am looking at my paystub and am worried I haven’t paid enough tax this year. My retro and regular salary has grossed me $86,000 so far this year. I’ve paid $10,200 fed tax and $5340 provincial tax.

The tax calculator on nuevoo.com says with an 86k salary I should have paid $14,000 fed tax and $6600 provincial tax. It also says cpp is $3500 (mine is $4055) and EI should be 952 (mine is 1049).

1. I’ve paid about $10k into a defined pension plan. Does this money get deducted from my income like an RSP does for tax purposes?

2. How accurate is this website? Is there a better website I can be using to check? It seems slightly off since my cpp and EI numbers aren’t correct.

Thanks!

Throwaway account for privacy reasons.

Hi all, thanks in advance for your help. Here's the situation. My only remaining parent passed away in Canada and I, as the only child, am the executor. I'm also a non-resident living in the US (I'm a dual citizen).

My parent's Canadian bank is telling me they will have to withhold 25% of my inheritance because of my non-resident status.

Upon some research, there seem to be indications that this 25% may be redeemable in certain circumstances (but what circumstances exactly?).

I'm also unsure whether this 25% tax is applicable to all assets (RRIF, TFSA, chequing/savings accounts, house, etc.) or only ones that generate income.

I have a meeting with my parent's estate lawyer coming up but I'm trying to wrap my head around some things beforehand.

How worried do I need to be that 25% of the estate will be taken by CRA simply because I'm living abroad at the moment?

Hi, A client's 10 quarters GST return were due and filed last month, the latest GST is now over due. There was an amount due for each 10 quarters and payments were submitted along with them. CRA had deducted around 15k in March (I am assuming this was calculated by CRA for those 10 outstanding GST returns) now after assessing the due GSTs, there's a 6K in CR balance on CRA online portal.

1. Their CRA online portal shows a $6k credit in "current balance" and $8k Credit in "current interim balance", this is due to latest GST return over due? Shouldn't the CR balance be reduced if a GST return is over due?
2. When filing the last GST due, a payment should not be submitted because there is already a CR balance, correct?

3 How can client request CRA to to send them a cheque for the CR balance, or is it better to file the GST returns for upcoming quarters and CRA will apply the balance to it?

Does a significant jump in income trigger an audit from the CRA?

I am a salaried employee who will see his income DOUBLE due to stock market trades and interest income from a fixed deposit. Will this trigger any reviews or audits from the CRA? The CRA will see all of my gains from stock trades on t5 slips and employment income from t4. Am I just stressing over nothing?

Would this matter more if I was self employed or running a business?

ty

Closing on a house. My name only on title. Married. Since my spouse will lose eligibility for the FHSA it makes sense to me they can pull it out also without penalty, but what is the answer?

I am trying to file NR6 in time for 2025 tax year so that it can be approved before I get the rental income in January. How were you able to submit this form online? I am on the CRA ‘submit documents’ section but I don’t see any option for the submission of this document.

Thanks

In April 2024, I submitted a T1 adjustment for my 2021 and 2022 tax returns to include some business income losses. A few months later, I received an audit request for the 2022 return and a month and a half ago, I received confirmation that the audit was completed and successful.

Since then, I haven't obtained a notice of reassessment. I called again and I'm told my case has been closed and that if I want to obtain my adjustment, I need to file the adjustment again.

The auditor said that within a month of him closing my case, I should receive something from the fiscal center and to keep on waiting. But on the other hand, CRA agents are telling me that if anything is to happen, my case needs to remain open for changes to be made. Did the auditor mess up and close my case when he shouldn't have?

Am I really supposed to submit an adjustment request again?

Anyone still experiencing issues with RAC? Going on 2 weeks. Still cannot create authorization requests or submit signed authorization signature pages. I think they’re slowly working on rectifying these issues because at least now I can see tax slips.

Hi, I left Canada in February 2022 to the UK. At the time I was on a working holiday visa and planned to return to Canada at the end of those 2 years. I ended up getting a more permanent position in the UK and now have no plans to return to Canada anytime soon - I am on an additional visa now.

When I left Canada, I did not realise there was anything I needed to do in terms of declaring residency etc. I have filed my Canadian taxes for 2022 and 2023 from the UK - I did earn Canadian income in 2022 but not 2023, and have just included my UK address as a factual resident.

Since December, I have had a more permanent job, living situation, visa, and exchanged my Canadian drivers license for a UK one. I now feel that I am no longer a factual resident. I have a very small amount of money in my Canadian bank account (BMO) but not much - I do not have any pensions or property and the few things I owned are just at my parents'. I do not have a dependent or a Canadian spouse.

I know about file NR73-23e but did not fill it out when I moved as it did not (and still doesn't) seem to apply to me. Can I refile my 2023 taxes with a departure date and explain that I thought I would be coming back and now my situation has changed? Do I need to refile all my tax returns since leaving Canada? Something completely different?

Any help is very appreciated - I find I keep reading contradictory things and I just am not sure where to go! Thank you.

Hello, hoping to get some clarity here on my tax situation

In 2017 I moved outside of Canada because my employer moved me. I was a deemed resident because I am a Federal Employee.

I sent a letter to CRA saying I wanted to designate my condo as my principle residence while I was away under section 45(2) and then I reported the rental income and never claimed CCA.

I returned to Canada this year and am buying a new house.

1. I had initially intended to resume occupying my original house but since I had a kid in the last year we chose a different house. Between 2022-2024 I guess I am liable for capital gains tax? I see there is something about indefinitely extending my election but since I didn't reoccupy the house that doesn't apply does it?

2. Since I didn't physically live in the house, can I use the FHSA? The wording says live, but then I'm not sure about what an election is considered as?

3. How do I tell the CRA that I want to switch my principle residence to my new house and when am I liable for taxes on the original ? I assume another letter? I don't see anything on myCRA about my original election letter, how do I ensure they got it?

I am a Canadian citizen working abroad on business visas in Cambodia for 10 years. I am no where near an expert on taxes. I just used quicken every year before I moved abroad. My understanding is that I would be classified as a Non-resident, having no significant bonds, only secondary, though I plan to move back home someday. So I don't have to pay taxes on what I earn abroad. I haven't paid any taxes in Canada since I left to work abroad. My income here is under 15k a year.

But now I am trying to invest small amounts ($50 a month) with an international broker with money earned abroad and not sure if I have to pay taxes with Canada or how. I believe that non resident have to pay taxes on dividends. Is this correct?

I will be moving abroad for approximately 2-3 years for work and have been looking at the implications of becoming a non-resident of Canada. I will be maintaining ties with Canada and plan to return, but my destination has a tax treaty with Canada and based on my reading this will make me a non-resident.

I do not like the implications this will have on my finances:

• Lost TFSA room accumulation
• TFSA investments become taxable
• I’m unsure of the implications on my kids RESPs but believe it will impact the ability to make contributions/receive grants
• My brokerage does not allow non-resident clients and will need to relocate
• Need to pay withholding tax on my rental income

Is it possible for arguments to be made in favour of maintaining my resident status even though there is a tax treaty in place?

Thanks.

Hi everyone,

I’m looking for advice on how to best prepare for my departure from Canada, particularly regarding any tax implications and necessary steps to make the process smooth. Here’s some context on my situation:

Me and my husband landed in Canada in November 2021. I entered Canada as a citizen (but was never a Canadian resident before 2021) and my husband is on a PR. My husband is planning to apply for citizenship beginning of 2025. However, we plan to leave Canada before reaching the 60-month mark (late 2025/early 2026).

We’ll be returning to our home country, where I own a property, and one of the reasons I’m planning to leave before the 5-year mark is to be exempt from the deemed disposal tax on my overseas home.

I have a few questions:

1. Exit Prep: What should I prepare for before I leave Canada, specifically for tax and financial purposes?

2. Banking & RRSP: Should I keep a Canadian bank account open? It may be necessary for paying any taxes? I also plan to keep my RRSP but would love any insights on managing it from abroad. If anyone has experience maintaining a Canadian bank account or RRSP from outside Canada, are there any specific banks or providers that are easier to work with internationally?

3. Exit Timing: Is there anything else I should consider to ensure I meet the exit timing to avoid deemed disposal on my overseas property? For what reasons could I not be exempt from deemed disposal if I depart before 60 months?

4. Residency Status: Are there any specific steps to ensure I’m properly considered a non-resident for tax purposes when I leave Canada? I’d like to avoid any misunderstandings about my residency status.

5. Filing Final Tax Return: What’s the best approach for filing my final tax return? Should I plan to work with a tax professional familiar with exit requirements, or is it fairly straightforward? I normally file my own tax return myself.

6. Departure Tax Exemptions: Are there any other specific exemptions or deductions I might qualify for, based on my situation (leaving before 60 months, already owning property abroad)?

7. Citizenship: Are there any issues related to my husband applying for citizenship?

Any insights or tips would be really appreciated. Thanks in advance!

Partner and I have a property we'd like to sell next year (not principal residence) which is currently in my name only. I'd like to spread the CGT over this year and next if possible. Can I transfer half the property to my spouse this year and elect to pay the CGT on that half then pay the remaining CGT when we sell next year? Also - is the provincial assessed value acceptable to use as the fair market value?

Edit for clarity: Thanks for the responses so far. I paid for the property but I intend to gift half to my spouse. We want to use the proceeds of the eventual sale for another property in both names.

I was recently given a re assessment where the CRA removed all of my child care deductions. My ex partner and I each pay 50% of the child care and I’ve never had a problem until last year (2022 taxes) where the cra outright rejected my receipts (typically she would pay and she would issue a receipt stating I had paid her which of course I have) I sent in my documents at tax time when I was first asked for the documents now I’m being asked for completely different forms. Do I have any options here? Send a T778 and dispute? I’m also the lower earner between my ex and I so not sure what to do here. Should I dispute 2022 and 2023? Not looking to pay $900 given I paid those child expenses. Thanks in advance

Hi everyone,

I'm French and moving to Quebec at the end of the year with my boyfriend who's Canadian, and we'll apply for PR through the common-law partner sponsorship (inland). I’ll arrive with an eTA and, once I get the AOR, apply for an open work permit. I’m currently living in France and working for a French company that wants to keep me on remotely for a few months, likely at least six, but we’re still finalizing the details.

From what I understand, entering Canada as a visitor lets me work for a foreign employer for up to six months under the "digital nomad" policy.

Here are a few questions I have (any insights are appreciated!):

• Once I have my work permit, can I continue working on a French FTE contract, or is that risky? I read about potential issues with establishing a "permanent establishment" for my company, any insights?
• My company is also open to hiring me through a third party like Deel or Remote once I get my work permit, is this the recommended way to do it?
• Would it make more sense to set up as a freelancer? Should I open a company in France or Canada for this? I think it would be easier for me to do it in France and bill in euros but wondering if I can do that.
• I’m guessing if I work for my French company past six months, I’ll need to declare my full income in Canada. But if I only work with them for six months and then find a job in Canada, should I split my taxes between France and Canada?

Really, any insight is highly appreciated!

Thanks so much for any help!

Hello everyone,

I'm facing some difficulties with gas receipts data entry regarding the sales taxes

some gas staitons have

HST 13% and gas amount
some show both
FHST and HST
others GST 5% HST 8%

and the most recent one is like

100$ including
FHST 4.42
PHST 7.08
FET 6.81
PFT 10.01

My question is the GST/HST rt0001 is for both, I can't find anything related to FHST,PHST,FET,PFT on governmet website https://www.ontario.ca/document/harmonized-sales-tax-hst

Thanks in advance

TL, DR:

• Register your email with the CRA, either while filing your return or log in to My Account
• Use app-based 2FA, disable both email and SMS/phone call 2FA after completing the process
• If you see any fraudulent activity on your CRA account, call them, Service Canada and police immediately

I am a CVITP volunteer and know that anyone with an EFILE number + auto fill my return can enter anyone else's name, date of birth and social insurance number into an EFILE certified program to file their tax returns. When you do this without authorization and with the intent to defraud an individual or multiple people (by, amongst other things, illegally altering their direct deposit information so that you redirect their tax refund, GST credit/CCB to your account or a compromised account under your control, or changing the person's address with the EFILE program), you are usually committing an obvious crime: I underwent a criminal background check to get access to the system. If I did something like this, the CRA would notice and my EFILE and auto fill registration would likely be cancelled, and I would be charged under section 342.1 (1) of the Criminal Code for "unauthorized use of a computer" as well as 380(1), fraud. If the funds defrauded exceeds $1 million, there is a minimum sentence of 2 years for the fraudster.

Now, the news article is saying that H&R Block (the tax filing company) got their EFILE/My Business Account credentials stolen by outside parties, and those credentials are used to file fraudulent tax returns for non-customers. This is a major problem. While the CRA gives users (My Account, auto-fill return, etc...) the option to implement various kinds of 2 factor authentication (up to and including app-based authentication, to the exclusion of all others if desired), it doesn't mandate which one(s) the user chooses. I am a security-conscious person and encourage anyone and everyone to use app-based authentication to the exclusion of all else with no backups (being locked out of your CRA account is far better than having someone steal your information or your money), In addition, the CRA implements no security at all for EFILE. If someone knows your EFILE number and the password that the CRA gave you as a tax filing "professional" (they change it automatically when you renew your registration once a year), they can do a lot of damage because there is no 2FA here whatsoever (that alone is enough to give them the ability to file a false return). In this case, it seems like both H&R Block and the CRA have a lot to answer for. I am not a lawyer, accountant or computer expert, but I expect H&R Block to get sued and likely lose. Whether the CRA can be sued or not isn't something that I would know because it's a government agency. But catching who actually did this crime could be next to impossible, as they could very well be outside of Canada if they know what they are doing.

From my experience with this system, if the victim has an email on file with the CRA, they would immediately be notified of the "Represent My Client" access as soon as anyone uses the auto-fill system to access their information. Anyone who submits a tax return online would also get an email notifying them as such. While I understand this is something that a victim is absolutely powerless to defend against (because the CRA allows any EFILE user to access practically anyone else's tax records and file returns on behalf of anyone else), I think it is absolutely essential that every taxpayer register an email address on file with the CRA so that they know something fraudulent is happening the moment it happens and report it to the relevant agencies.

Hi guys! I just wanted to ask if the CRA accepts payment form WISE? I don’t have canadian bank account now coz I moved to US..thank you

Located in Ontario, Canada. Currently operating short term rental aka Airbnb (less than 30 days).

1. I provide meals, frequent cleaning service. Can I claim it as active business income?

2. Do I need the property under corporation to be able to claim it as active business income? It's currently owned under personal names.

3. What are other things that I need to consider?

A U.S. corporation incorporated a Canadian corporation for sales to Canadian retailers. Goods are delivered directly from the U.S1. There is no physical office or warehouse in Canada to store the goods. My understanding is that since there is no permanent establishment (PE) in Canada, the sales made in Canada should be considered a treaty-protected business and exempt from Canadian corporate tax. However, a T2 return is still required, along with the completion of Schedule 91 (Information Concerning Claims for TreatyBased Exemptions) and Schedule 97 (Additional Information on NonResident Corporations in Canada. Is my understanding correct?

Are there any benefits to keeping the corporation in Canada, or can the U.S. corporation file a T2 return without needing the corporation that the company incorporated in here?

Thank you for everyone feedback!