Personal Finance

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

  • Last Updated:
  • Dec 13th, 2017 8:37 pm
Member
Jul 9, 2009
245 posts
7 upvotes
Toronto
don242 wrote:
May 1st, 2017 12:51 pm
Not sure what that word was supposed to be. Auto correct did something that I missed!

Basically the software was just assuming your wife wasn't working so you were getting the credits for that. The amount you owe is over the 3000 mark. Not sure why (all kinds of possible reasons), but if that continues the CRA may ask you to start making instalments in the future.
Thanks!!!
Newbie
Apr 29, 2017
6 posts
Conquistador wrote:
Apr 30th, 2017 8:11 pm
How did you not receive a statement of adjustments when the sale closed with the cheque for the proceeds which would have shown all you're talking about including the deduction to pay the lawyer's bill, adjustment to property taxes, and expenses? This should have been the normal course.

Not sure what you mean by "get a delay" but if you think CRA will allow an extension, it ain't going to happen. If you can't get the SOA, you should be filing based on your best guess and be conservative with the estimate.
Thanks so much for your post. I was mixed up a bit with my terminology and you led me in the right direction. Again, great help and thanks again.
Member
Jul 11, 2008
445 posts
96 upvotes
Removed $50,000 from mutual funds in *non-registered* savings account in 2016 since we felt we may need to use those savings for a down payment sooner than expected.

The T5008 slip from CRA indicates for box 21 (Proceeds of disposition or settlement amount) as $50,412. Box 20 is left blank - I'm trying to figure out what the adjusted cost base is ?

Simple tax indicates the "type of income field" as mandatory - if I choose "investment" my tax return changes from $0 return to $17,000 owing - doesn't add up - I only removed funds from mutual funds to secure holdings/savings. My best guess is it has something to do with box 20 (adjusted cost base) being left blank. Any advice?
Deal Fanatic
User avatar
Nov 19, 2004
7220 posts
993 upvotes
Cambridge, ON
adilh53 wrote:
May 1st, 2017 11:10 pm
Removed $50,000 from mutual funds in *non-registered* savings account in 2016 since we felt we may need to use those savings for a down payment sooner than expected.

The T5008 slip from CRA indicates for box 21 (Proceeds of disposition or settlement amount) as $50,412. Box 20 is left blank - I'm trying to figure out what the adjusted cost base is ?

Simple tax indicates the "type of income field" as mandatory - if I choose "investment" my tax return changes from $0 return to $17,000 owing - doesn't add up - I only removed funds from mutual funds to secure holdings/savings. My best guess is it has something to do with box 20 (adjusted cost base) being left blank. Any advice?
It is up to you to calculate your ACB. You are going to have taxes owing on the capital gains. Once you figure out your ACB, the gains can be determined.
Member
Jan 30, 2013
393 posts
29 upvotes
RICHMOND HILL
RRSP planning:
first year of work espected pay $145000,no RRSP room from previous work,
can you contribute in the same year or the following year's first 2 months to use it as deduction against this income?
Member
Jul 11, 2008
445 posts
96 upvotes
don242 wrote:
May 2nd, 2017 6:56 am
It is up to you to calculate your ACB. You are going to have taxes owing on the capital gains. Once you figure out your ACB, the gains can be determined.
So is box 20 basically what $$ i bought the mutual funds for? Ie if i had $50,500 in savings which i then bought mutual funds with and the value of the mutual funds when i pulled out of mutual funds was 50,000 even then for box 20, would i use the 50,500 number? Thanks!
Deal Fanatic
User avatar
Nov 19, 2004
7220 posts
993 upvotes
Cambridge, ON
adilh53 wrote:
May 2nd, 2017 10:26 am
So is box 20 basically what $$ i bought the mutual funds for? Ie if i had $50,500 in savings which i then bought mutual funds with and the value of the mutual funds when i pulled out of mutual funds was 50,000 even then for box 20, would i use the 50,500 number? Thanks!
I can't really say since I don't know the details. But essentially you need to determine the cost to acquire the shares, plus any reinvested distributions over the period you owned the shares.

Sucks that you took a loss considering the markets right now (though depends on the funds).
Deal Fanatic
User avatar
Nov 19, 2004
7220 posts
993 upvotes
Cambridge, ON
goldenball wrote:
May 2nd, 2017 9:30 am
RRSP planning:
first year of work espected pay $145000,no RRSP room from previous work,
can you contribute in the same year or the following year's first 2 months to use it as deduction against this income?
Contribution space is based on the previous year's earnings. If you had no earnings in Canada last year, then your 2017 space will be zero. You will not be able to deduct anything until 2018 taxes.
Member
Jan 19, 2017
484 posts
128 upvotes
adilh53 wrote:
May 2nd, 2017 10:26 am
So is box 20 basically what $$ i bought the mutual funds for? Ie if i had $50,500 in savings which i then bought mutual funds with and the value of the mutual funds when i pulled out of mutual funds was 50,000 even then for box 20, would i use the 50,500 number? Thanks!
If you only made one purchase at $50500 and no reinvestment of distribution, then your ACB is $50500.
If you can't prove your ACB is correct, CRA actually calculates your capital gain using ACB of zero.
Newbie
Dec 26, 2011
13 posts
3 upvotes
NORTH YORK
if you file a paper return how long does the government actually keep that return? do they transfer it to computer and throw away the paper?
Newbie
May 11, 2014
11 posts
1 upvote
Wasaga Beach, ON
good day eh - just wondering, I'm all done my taxes, but went to the CRA website and happened to notice under "t-slips" that there is a document for the tax free savings account.

The only number on the slip is for "end of year fair market value". Does this belong somewhere on the tax return, or is it just something financial institutions have to declare for you?
Deal Addict
Apr 18, 2012
1145 posts
57 upvotes
ks_tiwari wrote:
Apr 30th, 2017 5:33 pm
Please suggest...

From Ontario moved to USA with family for the employment (US employer) (no primary ties in Canada) then after 2.5 months I moved back to Quebec for a new job.
ON to USA (in April 2016)
USA to Quebec (In July 2016)

(1) Was I non-resident for the part I lived in USA and I need not to declare my USA income (W2-slip) ?
(2) I should declare date of departure and date of arrival on front page of T1General where it ask for "If you became or ceased to be non-resident of Canada for tax purpose" or I must declare these dates irrespective of my residency status
(3) Will I be eligible to claim my moving expense from ON to USA.

How should I prepare my tax... please suggest. Thank you!
you should go see an accountant.. not sure why people cheap out when they have a complicated return..

if you have a bank account, you are still considered to have ties in canada and is a resident for tax purpose.
Deal Addict
Nov 2, 2013
4866 posts
937 upvotes
Edmonton, AB
I work for both my own corporation and other employers throughout the year. I have mileage and home office expenses relating to the corporation income. If I pay myself dividends, would I still be considered an employee of the corporation and use those as employment expenses? Or would I have to pay myself a salary to be eligible to claim the expenses as employment ones? If so, how frequent does the salary have to be?
Deal Fanatic
User avatar
Nov 19, 2004
7220 posts
993 upvotes
Cambridge, ON
johnable wrote:
May 2nd, 2017 9:34 pm
good day eh - just wondering, I'm all done my taxes, but went to the CRA website and happened to notice under "t-slips" that there is a document for the tax free savings account.

The only number on the slip is for "end of year fair market value". Does this belong somewhere on the tax return, or is it just something financial institutions have to declare for you?
You don't need to do anything on your tax return with the tfsa information. The financial institutions report it so the cra knows your activity for determining space. Also for your information, but better to rely on your records, especially early in the year because the institutions take awhile to report.
Deal Fanatic
User avatar
Nov 19, 2004
7220 posts
993 upvotes
Cambridge, ON
FirstGear wrote:
May 3rd, 2017 7:13 am
I work for both my own corporation and other employers throughout the year. I have mileage and home office expenses relating to the corporation income. If I pay myself dividends, would I still be considered an employee of the corporation and use those as employment expenses? Or would I have to pay myself a salary to be eligible to claim the expenses as employment ones? If so, how frequent does the salary have to be?
Mileage related to your corporation would be reimbursed to you by your corporation. So for you, it is not an expense. If the corporation owns the vehicle, then it is a taxable benefit to you. When you own a corporation, you should be directing these questions to your accountant.

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