Personal Finance

Tax time! I'm a public accountant, so ask me, I'll try to respond frequently

  • Last Updated:
  • Oct 11th, 2019 7:45 pm
Newbie
May 10, 2018
2 posts
I'm sorry that I didn't write correctly enough in my previous post. I live in Ontario, and my husband lives abroad and transfers money from abroad. Since I and he became a permanent resident and tax residents this year, we've filled out the Canadian tax declarations. My declaration is zero (I go to language courses), and my husband has overseas income. He pays Canadian taxes to this income (our country has a tax treatment with Canada) and sends money to my account in a Canadian bank. What is the best way to specify the purpose of payment in order to avoid double taxation since this is not my income and my husband has already paid taxes in Canada to this income? Family support or personal funds?
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Aug 30, 2011
3311 posts
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Ottawa
Genia28 wrote:
May 12th, 2018 10:24 am
I'm sorry that I didn't write correctly enough in my previous post. I live in Ontario, and my husband lives abroad and transfers money from abroad. Since I and he became a permanent resident and tax residents this year, we've filled out the Canadian tax declarations. My declaration is zero (I go to language courses), and my husband has overseas income. He pays Canadian taxes to this income (our country has a tax treatment with Canada) and sends money to my account in a Canadian bank. What is the best way to specify the purpose of payment in order to avoid double taxation since this is not my income and my husband has already paid taxes in Canada to this income? Family support or personal funds?
Either is fine. You may have to provide more information if FINTRAC asks.
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Mar 10, 2018
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Genia28 wrote:
May 12th, 2018 10:24 am
I'm sorry that I didn't write correctly enough in my previous post. I live in Ontario, and my husband lives abroad and transfers money from abroad. Since I and he became a permanent resident and tax residents this year, we've filled out the Canadian tax declarations. My declaration is zero (I go to language courses), and my husband has overseas income. He pays Canadian taxes to this income (our country has a tax treatment with Canada) and sends money to my account in a Canadian bank. What is the best way to specify the purpose of payment in order to avoid double taxation since this is not my income and my husband has already paid taxes in Canada to this income? Family support or personal funds?
check you that country is on this list. If it is no problems.

https://www.fin.gc.ca/treaties-conventi ... e--eng.asp
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Mar 1, 2006
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My parents have a cottage in their name, but i'm renting it out for them. So on Airbnb my name is listed as the person who signed up and it's my bank info given, but the insurance policy will be under their name as it is their name on the cottage.

Just wondering what will happen when tax time comes next year? Am I simply able to pass off that rental income slip off to my parents to file with their taxes along with other expenses for the cottage?

Thanks
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Jan 27, 2007
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Peterborough
JayTee1 wrote:
Jul 19th, 2018 9:10 am
My parents have a cottage in their name, but i'm renting it out for them. So on Airbnb my name is listed as the person who signed up and it's my bank info given, but the insurance policy will be under their name as it is their name on the cottage.

Just wondering what will happen when tax time comes next year? Am I simply able to pass off that rental income slip off to my parents to file with their taxes along with other expenses for the cottage?

Thanks
Who has the risk of loss or expectation of profit. If you are getting the $ and incurring the costs, then you report it.
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May 19, 2015
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How do I apply tuition credits? For next year's tax season I have income that I will probably have to pay taxes on. I have quite of a bit of tuition credits since I never used it and they have rolled over year after year. Thanks!

EDIT: is there a way to check how much tuition credit I have or how much left if I use some?
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Newbie
Jul 19, 2018
2 posts
Hi if anyone can help me understand this more clearly. I Netfiled my taxes and it said Assessed the same day on my CRA account, but it says assessment date July 30th and can view NOA on the 30th as well. It doesn't say my refund even though I am getting one but when I check my Statement of account it tells me refund issued on July 30th. Now between now to the 30th would anything change or has everything already generally been processed?
Sr. Member
Jan 3, 2007
523 posts
59 upvotes
Toronto
My wife runs an online business from home, but her name is not on our deed and i pay all of the utilities, mortgage, and property taxes. When it comes time to file taxes, is she still able to claim all of that (certainly not the whole thing, but as a percentage allocated to function as the business) as her business-use-of-home expenses? In other words, does it matter which spouse pays the bills if one is to claim home expenses when self-employed?
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Aug 30, 2011
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SignedA wrote:
Jul 20th, 2018 7:26 pm
How do I apply tuition credits? For next year's tax season I have income that I will probably have to pay taxes on. I have quite of a bit of tuition credits since I never used it and they have rolled over year after year. Thanks!

EDIT: is there a way to check how much tuition credit I have or how much left if I use some?
Since "You have to claim this amount (tuition carryforward) in the first year that you have to pay income tax" the CRA will make the claim for you if you don't do so, or will adjust the amount claimed. If you use software, it will calculate the claim for you (assuming you have indicated the carryforward amount or have used the same software program since you claimed the tuition originally).

I haven't checked, but I expect that your carryforward values are shown in My Account https://www.canada.ca/en/revenue-agency ... duals.html. If you haven't yet registered for My Account, it's worth doing so.
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Jul 24, 2003
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Last edited by manho on Jul 29th, 2018 11:09 pm, edited 1 time in total.
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Mar 29, 2003
3012 posts
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Vancouver
Hi, what's a fair price to pay to have your corporate taxes done by an accountant?
Jr. Member
Dec 5, 2016
193 posts
25 upvotes
Hi - need help with my situation:

We have a retired relative (earns no income) who will be providing day care for our child.
I understand if we start paying the relative we can claim the child care expense on our taxes and the relative will have to include this payment as income on their taxes.

My question is how much will we have to pay the relative to balance out the money they are receiving from the government from having no income?
Is it worth paying the relative at all (i.e. it might be better for us to reduce our taxes - but in the end not better for the relative)?
Newbie
Jun 10, 2017
59 posts
18 upvotes
Hi Guys, I am looking for some suggestions:

I am currently working full time and also do some work on the side. I invoice my client as sole proprietor. I suspect the side work would earn me around 12k-15k by the end of the year. My wife is not working currently. She does however supports me in this work. Is it possible to transfer the income from my side job to her and possibly save some tax. My client doesn't know her directly so they don't want to receive invoice in her name.

If not what would be the best way to save taxes in this case. Thanks
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Mar 3, 2018
1063 posts
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GTA
Lgupta wrote:
Aug 10th, 2018 6:27 pm
Hi Guys, I am looking for some suggestions:

I am currently working full time and also do some work on the side. I invoice my client as sole proprietor. I suspect the side work would earn me around 12k-15k by the end of the year. My wife is not working currently. She does however supports me in this work. Is it possible to transfer the income from my side job to her and possibly save some tax. My client doesn't know her directly so they don't want to receive invoice in her name.

If not what would be the best way to save taxes in this case. Thanks
If you transfer this income to your wife you would lose your spousal claim of $11,800. Almost a wash except for the difference in tax rates between you and your spouse. And then your wife would have to pay CPP on self employed earnings where you may have maxed out your CPP through your work.

Generally you can claim her time / work as an expense if it is considered reasonable. But it may not amount to any significant savings as a family as mentioned.

Another strategy would be to contribute the income to a spousal RRSP if you have the contribution room and funds. After three years it can be withdrawn as her income and you get the current year deduction.
Newbie
Jun 10, 2017
59 posts
18 upvotes
DaveTheDude wrote:
Aug 10th, 2018 7:17 pm
If you transfer this income to your wife you would lose your spousal claim of $11,800. Almost a wash except for the difference in tax rates between you and your spouse. And then your wife would have to pay CPP on self employed earnings where you may have maxed out your CPP through your work.

Generally you can claim her time / work as an expense if it is considered reasonable. But it may not amount to any significant savings as a family as mentioned.

Another strategy would be to contribute the income to a spousal RRSP if you have the contribution room and funds. After three years it can be withdrawn as her income and you get the current year deduction.
Thanks Dave. I didn't think about CPP. I think RRSP would be a good option unless I see an opportunity to create a corporation. Do you think creating a corporation would save taxes and at what income level would you recommend I should incorporate?

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