Hi!

I’m planning to move to the US on TN visa early 2025 as a Canadian citizen (no properties) as my common law moves to the US for schooling - we plan to return but not 100%.

It is my understanding that he will continue to be a Canadian tax resident as he will be on a US student visa, but is the fact that my common law is a Canadian tax resident (although he will be physically living and studying full time in the US) likely to make me a Canadian tax resident as well? What about the fact that we technically do plan to return?

Thanks in advance for ANY insights y’all may have!

Opco shares are owned by holdco 1. Holdco 1 shares are 50/50 owned by holdco 2 and holdco 3 . How do we remove holdco 1 and have holdco 2 and 3 to own 50/50 shares of opco without incurring a tax bill? Would section 85 rollover work?

Hello, I started a full-time job in July 2024 and am now resigning to begin another full-time job. I’m currently filling out the TD1 form for the new job. I claimed the personal tax credit with my previous employer—should I claim it again on this form to transfer it to my new employer?

Also, I started a part-time job last month but did not claim the personal tax credit for that position

If a deceased person’s estate received a $2000 death benefit, do I include it on their final return? Or do I need to file a T3? Or does it go on the beneficiary of the estate’s T1?

Hi all.

We have a licensed vehicle dealership that leases vehicles to customers. I am trying to determine if the vehicles we lease out would be considered Class 10 or 10.1. Does class 10.1 apply when we are in the business of leasing vehicles?

We buy the vehicles and then lease them to customers at a marked up price. The leases are 6-8 years in length. At the end of the lease we will sell the vehicle for whatever it is worth at the time. There are currently about 50 vehicles being leased and several cost more than the $37,000 limit for class 10.1.

I have received some different opinions from different accountants. One suggested we treat them as inventory and write down the inventory each year instead of claiming CCA. Hoping to hear some thoughts.

Thanks.

Daryl Boychuk And Stèphane Prud’homme Summaries of CRA Roundtable Discussion

Official answers coming out in the next few weeks and will supersede these notes.

Question 1.-Safe Income and Pref Shares – Pref shares are acquired in exchange for common where company has shares with an accrued gain.

a. What portion of the gain is allocated to the pref shares? Not the same as non-share consideration, instead follows portion of safe income the exchange shares would have been entitled to before the exchange.

Question 2.-55(2) and intra Corporate Dividends

a. 2015, and 2016 positions are still valid for well-established divided policies and don’t hit the purpose test for 55(2.1)(b). Open for business for ruling on purpose tests.

Question 3.-Notifiable Transactions (237.4) same or substantially similar NT 2023-05 back to back arrangements.

a. What is the scope of the term financing? (Debt or equity)

i. Not restricted to debt, can include equity component, but informed by the back to back loan rules. Straight equity probably ok. Can be used as an information gathering tool.

b. What role does taxpayer intent/purpose play in determining whether such a transaction is a notifiable transaction.

i. May be used to better target audit resources or department of finance policy. Not looking to have them filter on purpose or intent.

c. Is there an inherent materiality concept.

i. No, but having said that there is some flexibility. If they exercise the care diligence and skill to see if it was a notifiable transaction. Know or should be reasonably expected to know. Process penalties will have oversight from Ottawa. I expect there to be a certain amount of exercise of discretion.

Question 4.-Eifel and the Excluded Entity Exception

a. Where all or substantially all of their businesses and activities in Canada and Canada is taxing all of the income would these rules apply? In the given example you have to see whether it carries on business inside and outside of Canada then you need to go down to the second level and apply the “all or substantially all” which requires both a qualitative and quantitative approach. 90% approach has never been taken as a hard rule by the courts or the CRA.

Question 5.-EIFEL and the ATI Calculation where the TP has Non-Capital Losses

a. Does Adjusted Taxable Income require an iterative approach? Not really. The relevant variable only be nil or positive, but this may not be consistent with policy and there may be an amendment coming.

Question 6.-EIFEL pre-regime election and amalgamation – Do deeming rule take into account “excess capacity otherwise determined” and “excess interest”

a. Yes continuity of interest will apply. While the references are not included to the transitional rules on a textual, contextual and purposive approach this makes sense.

Question 7.-Post-Mortem Pipeline Bump Problems – Do the bump denial rules cause the charity to be a specified shareholder when they have entitlement to 11% of the shares before they are acquired.

a. Nope. They would not consider it to be a shareholder beforehand.

Question 8.-Application of 55(2)(b) (can there be two capital gains on one disposition?)

a. One capital gain (or loss). Purposive approach to prevent the doubling.

Question 9.-Regulation 105 (If CanCo pays NRCo to provide services in Canada. NRCO subcontracts part of the Canadian services to a third corp.)

a. New position is that services are subject to reg105 withholding. Reimbursements of disbursements can be excluded from reg105 withholding, but not subcontractor fees and will apply for payments made after Sept 2024. This will produce a lot of pressure for 105 waivers

Question 10.-Intergenerational Business Transfers. If there are two separate purchaser corporations with two children will it still work for an intergenerational transfer?

a. Provided the multiple dispositions occur at the same time it will generally be ok.

Question 11.-Global Minimum Tax Act – How will the CRA administer it when the international guidance is not brought into Canadian Law yet?

a. Will consult with department of finance when there is divergence, but will follow Canadian law. Sometimes in may change an interpretation, sometimes it will require a change in law.

Question 12 - Flipped Property and Corporate Property Transfer a. Heads up 365 day holding period or gain on disposition will be fully taxable, but the exceptions to not apply to 85(1), winding ups, or other common transactions.

Question 13 (12 omitted) Convertible Debs and Part XIII Tax (214(7) is the excess participating debt interest? Conversion premium will potentially result in an excess will be the value of that the values of the common share exceed the value and ones issued after December 3, 2024. But the excess will not generally be participating debt interest.

Hi all,

Question pertains to the sale of a public company's shares that were bought both on cash and margin. Let's say I bought 100 shares of a dividend paying-company entirely on margin, and have been deducting the margin interest, and somewhere down the line I buy 200 more shares (in the same account), this time with cash. I now have 300 shares, 100 that were purchased on margin and 200 with cash.

If I were to sell 50 shares, is there a way to determine whether those 50 shares are deemed to be the ones bought on margin, or the ones bought with cash? This would be for the purposes of determining whether the margin loan must be repaid - if the shares are deemed to be the ones bought with margin, then my understanding is that CRA stipulates that the margin loan must be repaid with the proceeds (or else the margin interest is no longer tax-deductible), whereas if the shares sold were the ones bought with cash, the margin loan can remain outstanding. Is there some sort of first-in, first-out rule that would apply in this situation?

Thanks very much.

Like many people, I applied for the disability tax credit this year and got approved back in June! It's over 6 months later and I'm still waiting for my tax readjustment that was supposed to be done by November at the latest.

I understand that they're busy and their timelines are always a joke, but I've been calling on a weekly basis to get an explanation or a new projected date and nothing. I recieved an email when they missed the 2 month deadline (which I had 0 hope for) but it was silence when they missed this one.

Is there someone else I can reach out to? Other posts said to contact your MP but I don't know how that would change anything. The customer service has no answers and winter heating bills are coming up.

My wife is a dual USA/CAN citizen and we were looking into potentially buying a home in the next few years but we heard that it's best to keep the property under just my name so US capital gains tax doesn't affect it if we sell later and property value increases.

However, if we don't put her name on the home, does that mean she can't withdraw from her RRSP Home Buyer's Plan?

My wife got a letter in June regarding a tax review for childcare expenses which she missed entirely. So CRA put it all to $0 and now asking her to deposit the return back. We used two daycares for our children and one of them is now closed so we don’t have the receipts or a contact for them. I do have the receipt for the second one. What are my options here?

I am about to inherit my grandfather's commercial lot early next year with my brother at a South East Asian country. I have not filed a t1135 ever before in my 20 or so years here in Canada, although I have a small vacant residential lot that I've had before I established residence in Canada with an ACB of $25,000 (I do not derive income from it, just a pain to cut all the overgrown grass every year with some buddies). With the acquisition of the commercial lot, the ACB will shoot way upwards of $100,000.

I also am part owner of a house in a different location and I don't declare that on T1135 either because it's personal use property. Does that sound right so far?

I'm nervous about receiving the commercial lot because I have to file a T1135 for the first time. My fear is how I would explain to the CRA the sudden filing of the T1135 for the new inheritance with the aforementioned residential lot? Would they find it strange and come asking? I know the alternative of not reporting is real bad.

I hope I could get some enlightenment here, and anyone who could allay my fears or give advice will be highly appreciated.

Thanks!

u/taxbuff , I have a scenario, if I buy an apartment in UAE and put it on rent, what are the tax implications? If I have to 5% tax in UAE, do I have to pay taxes in Canada as well? is it tax difference that needs to be paid?

CRA issued a manual refund to me on the 27th of November, curious if anyone knows the timeline of when I should expect it into my account?

CRA reps I spoke to weren’t incredibly helpful, so I’m just looking for an idea (if at all possible)

TIA!

Hi there, I'm a Canadian Citizen living in Canada. This year my mother (living in France with my father) transferred my parents' home to me and my sister (50% each)

When she did it, she put it under usufruct, i.e., my parents can continue to both live there, don't pay us rent/ they pay all bills etc.

My question is how do I report this for my taxes coming tax season in 2024? My portion is more than 250k, if relevant. No intention to sell until (hopefully very far in the future) they pass away.

Not sure what I need to declare at this stage or if this is many years in the future upon sale item.

Thanks

Ever since Amazon.ca started auto collecting and remitting GST/HST on all orders it has helped sellers who can shift the bureaucratic burden to Amazon as well as avoid the GST/HST collection fees from Amazon. Some may point out the ITC's for FBA fees which is true, but avoiding the tax collection fees amazon charges exceeds any benefits one can claim with ITC from FBA not to mention the simplification of accounting and time saving.

However even after this convenient change the bureaucrat mess at the CRA still expects you to remit GST/HST even if Amazon already does this task. So if you sold $100k in product and amazon remits $13k in GST/HST on these orders to the CRA, the CRA will still expect you to send them $13k (double dipping). To the CRA its not about the outcome, but the bureaucratic process.

Im voicing my frustration with the current process to see others insights on this or if there is any new upcoming ruling in the process.

I am a non-resident Canadian, I have been living out of the country for 12 years, and officially declared non-resident with CRA and paid all obligations in full in 2015.
Since that time I have been working/paid internationally, and have not paid or filed any taxes in Canada.

Things have slowed down a bit, and I am considering picking up some remote from a Canadian company. The employer would be paying me as an employee, with a T4 at end of year etc.
I expect the amount in any given year, will be under the basic personal exemption of ~$15k CAD.
The work will be done outside of Canada, but income paid to me in Canada.
Will I need to file an income tax return? If there is tax withheld, and I do file a return, will I get a refund? If I do work and bill via invoice, I know there has to be a 25% withholding tax paid to CRA, but I can't find answers about T4 work for non- residents. And, will this impact my CRA Non-resident status?

I'm a pretty small fish, usual annual income has been hovering around U$50k, foreign property value approx. U$100k, one (untouched) RRSP in Canada ($40k), country of residence has no tax treaties with Canada.

I've reached out to a bunch of people about this but no-one seems to have any solid answers. Any advice appreciated!

I am 35 and have an Ontario Holding Company with approximately $1,000,000 CAD in it that I have made from my business.

Nothing is for certain, so I am curious how much I can make a year in dividends if the business disappeared today.

For simplicity sake, let's say I put all of the $1,000,000 CAD into Enbridge (paying a 6.04% annual dividend) That's an annual Dividend of $60,400 CAD. Let's also assume I have $0 in T4 salary if I choose to take a break from working.

After collecting that dividend in my hold co and paying all $60,400 CAD to myself personally (whatever the most efficient way to do this is i.e. dividend payment to myself) - How much will I end up with personally after taxes?

My understanding is this falls into the "eligible dividends" category. But I'm curious with this example How much I would actually net personally in my account after taxes.

Hello,

I got an asset class 8 20% CCA year of acuistion was 2021 cost was 1200, I simply never claimed CCA on it,

I want to claim CCA how can I do it properly? the asset is just sitting on the statements as Fixed asset.

As the book says "Claiming CCA is optional, and I can claim any amount from Nil to Maximum, Unclaimed amounts remain on hand for future" how this will work in reallife?

Thanks

Hypothetical scenario:

Purchase AirBnb in a corp for $1,000,000 + land transfer (let’s say $20k). ACB = $1,020,000.

Operating AirBnb as a CCPC and generate $30k/yr net income for 5 years, so $150k of retained earnings over the period.

AirBnb property appreciates 20% over 5 years and is sold for $1,200,000. After paying 5% in real estate fees, net proceeds are $1,140,000.

Capital gains are $1,140,000 - $1,020,000 = $120,000. Assuming a 50% inclusion rate and 50% tax rate, you pay $30k in capital gains.

Let’s say the property is sold to a non-HST registrant (ie the seller is responsible for paying HST on the gross proceeds). $1,200,000 * 13% = $156,000.00.

Am I doing the math correctly? You would owe $186,000 in tax (HST + capital gains) + $60,000 in real estate fees. On a $1,200,000 sale the net proceeds (after real estate fees and tax) are $954k. Am I missing something?

So this year I had a squirrels(dead) and raccoons (moved) who decided to live rent free in one of the rental.

They got into the ceiling/attic and caused so much damage.

I had to pay around 6000$ to replace the shingles, soffit and facia.

Another 5000$ for the balcony repair + tree abatement.

These animals costs me an estimated 11K+ (Don’t get me started on insulation - that, frankly, I can’t deal this year and hopefully when money gets better, I tackle it)

Since it’s not an improvement this time and putting it back to its original state, can I claim it as maintenance/repairs (current)?

If you’re reading this and own a property with a tree : make sure there’s safe distance between trees and your roof! Once rodents get into your property, the costs are to cry for 🥲

So I am an American, making money through tiktok, but I am currently residing in Canada for university. Do I pay taxes in canada? Or just the American 1099 form that is sent to me through Tiktok?

Hello!

I have a few questions about completing form T776. This is the very first time I am completing this form, and I have some uncertainties which are listed below. Any support or insights here would be greatly appreciated.

Information:

• Information Pt.1: I am a 50% owner of the rental property. For tax purposes (And also in reality) everything is split exactly 50% between myself and the co-owner).
• Information Pt.2: The rental period is starting December 1st 2024. This means that I am only renting the property for 1/12 of the year.

Questions:

• Question 1: How does this work for listing expenses on T776 for things such as property taxes (With 50% ownership and renting for only 1/12 of the year)?

• Question 2: Would it be correct that the 'Total Expense' section would be calculated as 100% off annual property tax expenses * 8.33% (1/12 of the year)?

• Question 3: Would it be correct that the 'Personal Portion' section would be calculated as 100% of annual property tax expenses * 50% (50% ownership) * 8.33 (1/12 of the year)

• Question 4: Would all expenses in Part 4 of the T776, the 'Expenses' section, be calculated the same way?

• Question 5: Is there anything that would be different in completing this section (Part 4) with the fact that the 50% ownership is split between myself and my common-law partner? (We are not filing taxes together)

For anyone that takes the time to read this and respond, thank you so much. This is my first time completing this and I feel I have a good grasp on most elements of the form, though I can't find definitive information regarding my above questions.

Hey everyone,

I’m living in Toronto and graduated college this past March. For some context, I’ve only been in Canada for 3 years, so I’m still getting used to the whole tax system. I’ve been filing my taxes, but honestly, I don’t really understand them that well.

This year, I didn’t have a traditional job at all. I’ve been freelancing as a filmmaker, doing a lot of yard sales, and selling stuff on Facebook Marketplace (flipping clothes and furniture). Most of the money I make is through e-transfers to my personal bank account. I pay rent and have spent around $4k on an indie short film recently.

I’m not really recognized as someone who has a regular job, since I just make money from random things and small business-style activities. I’m not sure how to handle my taxes properly or what I need to do to make sure I get the best tax return possible.

Can anyone share advice on where to start? Should I be treating this like a business? Any tips, resources, or info on how to approach taxes in my situation would be super helpful! Thanks so much!

We are leaving Canada on December 31,2024. Can we mention that date in our normal tax return due April 30,2025. We don't have any assets in Canada which will attract departure tax. Is there any other return or form we need to file. Can someone please share some insights on how to approach in such situation. I am aware that we will be considered tax resident for FY2024, but by mentioning the departure date in the T1 return will we automatically be considered as non resident for Fy2025? Thank you!

I just got a job producing some art for a french client and it's of decent size ($2000 USD). I am working from Ontario fully remote. How should I go about filing/reporting this income? Will I have to file in France?

My father inherited a property from his parents in Europe. It's worth about €30K and he sold it for €50k recently. We aren't sure what the tax implications are. Would he be taxed on the full €50k right now or only when he brings it to Canada? If it's just transferred to Canada piecemeal over the years or if my father gifts it to his own children does he still pay tax? Just a note that he's already paid the inheritance tax in the European country.

Who would be an appropriate person to navigate this with, a lawyer?

I know for first year I do not need to report and file t1135. I plan on keeping my ETFs/stocks that I have been buying since last few years in Fidelity US brokerage. I’ll not buy anything there anymore.
So for preparing t1135 in the coming years, do I put the cost basis of these securities as the price of them on the day I entered into Canada permanently?
Also I plan on using the website adjustedcostbase.ca for help in preparing t1135, anyone got experience with this site ? EDIT: Not a US citizen or GC holder.

So my wife's sisters mom(different mom same dad) got funding through some disablity program of the bc government she's funded until 19 and she know lives with us full time

We get paid 1000ish a month by her mom once funding comes in

Funding is supposed to be used to help house cloth and feed her general cost of having a teenager

I've been wondering how the taxes work on this as we are family so the approval to get funding was a bit diffrent I think

I know that they look at the 10 year period prior to losing your DTC. (ex if you lost your DTC as of January 2025, the "10 year period" would be from January 2014 to December 2024). ALL grants and bonds paid during this 10 year period is refered to as the assistance holdback amount.

So if I make a single withdrawal after losing my DTC (before I turn 49), would I have to pay back the ENTIRE assistance holdback amount?

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp/canada-disability-savings-grant-canada-disability-savings-bond.html

Under "Proportional repayment rule", it states that the entire assistance holdback amount would need to be repaid. Is this still true?

Edit: The link given above is published by CRA and was last updated on 2024-11-28. It says to contact the ESDC for the most up to date information. I am so confused.

Edit 2: Here is the link from ESDC: https://www.canada.ca/en/employment-social-development/programs/disability/savings/withdraw.html

This link was last updated 2024-07-08. Under "You are not DTC approved and are under the age of 60", it says "The amount you need to pay back is $3 of grant and/or bond for every $1 withdrawn, up to the total amount of grant and bond paid in the periods as described above".

So which one is correct?