Personal Finance

Ask me anything about personal tax and accounting related

  • Last Updated:
  • Feb 1st, 2024 10:09 pm
Newbie
Jul 26, 2020
20 posts
2 upvotes
My son is a co-op student, and his latest co-op term was in the US.
Since the company is American, it deducts US taxes.
How should the US income and US taxes reported?
What form(s) should he get from the company?

Thank you!
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
apnayloags wrote: Is it necessary to remove old tax representative from CRA MyAccount in order to file taxes with new accountant ?

Wanna switch accountants next year.......wondering if we should delist the previous accountant name/info as they been filing our taxes
No, it is not necessary. Once your new representative is authorized, your might want to deauthorized the previous one, unless you want them to have access.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
kennyg1966 wrote: Capital gains after selling a property

I paid $35000,00 for a house 21 years ago. It’s a duplex. I lived in one side and rented the other. I’m potentially selling it for $190000.00 ++soon. I have lived in it for all but two years. Will I be subject to capital gains.
Also rental income was only collected for maybe 10-12 years . It was my primary residence for 19 of the 21 years
Thanks in advance
Yes. The portion of the gain that can be allocated to the unit you lived in, for the time it was your personal residence would be exempt. The remainder is not.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
jeeva86 wrote: I have a rental property acquired in 2021, property tax for that year only came out now and thus I just paid it. Do I claim this as a 2021 or 2022 expense?
https://www.canada.ca/en/revenue-agency ... P263_22444

In most cases, you calculate your rental income using the accrual method. For this method you:

report rental income in the fiscal period you earn it, no matter when you receive it
deduct expenses in the fiscal period you incur them, whether or not you pay them in that period
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
Aug 7, 2019
1240 posts
395 upvotes
Hi there. A question regarding calculation of the adjusted cost base for a new construction investment property.

My understanding is that the following all contribute to your adjusted cost base (ACB)

Original cost of the building
HST on the new construstion
Additional developer charges added to your purchase price (i.e. the additional charges they add on for "increased construction costs")
Land transfer tax
Closing fees


My question is, if you receive the new housing HST rebate for part of the HST, do you have to subtract that from your ACB?
Newbie
Mar 7, 2010
24 posts
5 upvotes
Vancouver
I sold a presale condo assignment in 2019, and reported capital gain. Long story short, I got audited for GST and I agree to pay it. It's paid in 2023.
Can I amend my 2019 tax return to include this GST payment, to reduce my capital gain for that year?
Thanks!
Member
Jul 6, 2009
276 posts
30 upvotes
Montreal
I live in Quebec and in 2022 I worked for 8 months in Quebec and 4 months in Ontario. Let us say I gained $60 000 in Quebec and $40 000 in Ontario. Somehow the Federal government has transmitted to the Quebec government that I earned $100 000 outside of Quebec. I filled my my return with TurboTax and properly indicated that one T4 was earned in Quebec and the other in Ontario.

What should I done to make sure the Federal government transmit the right amount to Quebec?
Deal Addict
Apr 16, 2015
1471 posts
1887 upvotes
Denis54 wrote: I live in Quebec and in 2022 I worked for 8 months in Quebec and 4 months in Ontario. Let us say I gained $60 000 in Quebec and $40 000 in Ontario. Somehow the Federal government has transmitted to the Quebec government that I earned $100 000 outside of Quebec. I filled my my return with TurboTax and properly indicated that one T4 was earned in Quebec and the other in Ontario.

What should I done to make sure the Federal government transmit the right amount to Quebec?
Unless I'm misunderstanding your question, your tax return is based on where you lived on December 31st. So, if you lived in Ontario on that date, the full $100K is taxed at Ontario provincial rates. If you lived in Quebec on that date, the full $100K is taxed at Quebec rates. This can result in either a refund or tax owing since your withholding taxes were split between the two.
Jr. Member
Jun 9, 2004
124 posts
1 upvote
We always hear about dividend vs salary for individuals having a wholly-owned corporation. What about possibility of paying yourself via a management or consulting fee?
In your T1, you would report income on a T2125 and your corporation would get a tax deduction.
Why is this not working? Because it could get reassessed as a disguised salary given it is paid from a company that you control?
Deal Fanatic
Jan 21, 2014
8518 posts
6261 upvotes
If one had some expensive dental procedures done in 2022, but they didn't start working till halfway through 2023. Can those medical expenses be claimed with their 2023 income tax?
Newbie
Feb 20, 2014
4 posts
Peterborough
Is there anyway to estimate my refund based on my end of year paystub
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Sr. Member
Nov 10, 2009
888 posts
418 upvotes
Toronto, ON
My son got some RESP money(EAP+grant) last year but he changed his mind and didn't go to school. What will be the tax implications?
I know he may have to pay the grant portion back to CRA.
Would RESP provider claw back EAP? Any penalties?
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Deal Fanatic
User avatar
Nov 19, 2004
9356 posts
2211 upvotes
Cambridge, ON
mkl38s wrote: If one had some expensive dental procedures done in 2022, but they didn't start working till halfway through 2023. Can those medical expenses be claimed with their 2023 income tax?
Eligible medical expenses are any 12 month period as long as that period ends in the tax year and you haven't claimed them before. So if you haven't claimed any medical expenses for 2022, then you could consider the 12 month period for example Feb 2022 to Jan 20223 and claim it on your 2023 return.
Deal Fanatic
User avatar
Nov 19, 2004
9356 posts
2211 upvotes
Cambridge, ON
yogiz wrote: My son got some RESP money(EAP+grant) last year but he changed his mind and didn't go to school. What will be the tax implications?
I know he may have to pay the grant portion back to CRA.
Would RESP provider claw back EAP? Any penalties?
I am surprised they let you take the money out without proof of enrolment. Grant and EAP to be paid back. Any gains would be attributed back to the contributors for tax.
Sr. Member
Nov 10, 2009
888 posts
418 upvotes
Toronto, ON
don242 wrote: I am surprised they let you take the money out without proof of enrolment. Grant and EAP to be paid back. Any gains would be attributed back to the contributors for tax.
He was enrolled but decided to drop out later
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Newbie
Dec 7, 2014
69 posts
21 upvotes
Ottawa, ON
I am a federal public servant employee with a defined benefit pension. I also contribute the max to my TFSA every year.

My question is whether it also makes sense to contribute to my RRSP. Yes, I will get a tax deduction and earn tax free grown in the meantime, but given my generous pension and potentially high income in retirement, does it make sense to contribute to my RRSP? I expect my highest earning years are still ahead of me, so using the RRSP as an income tax deferral technique may not make sense.

The only other factor is that, assume I don't take a break: I expect to reach 30 years of service at around 55, but won't be able to collect my (un-reduced) pension until 60. Therefore, could use the RRSP to have 5 years of income during that gap?

Welcome your advice.
Newbie
Feb 16, 2019
3 posts
1 upvote
Could you give more insight on the canada caregiver tax credit. In my situation I am caring for my grandma who has a disability and is married. Her spouse is therefore claiming the spouse/common law partner amount. From my research I believe I can not claim the canada caregiver tax credit because of this reason. The next question if true, is it mandatory for my grandpa to claim the spouse/common law partner amount even though they have no use of it. Or is there something I am missing in this circumstance.

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