Personal Finance

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

  • Last Updated:
  • Jan 18th, 2018 10:12 pm
Jr. Member
Mar 6, 2011
155 posts
25 upvotes
don242 wrote:
Jan 6th, 2018 9:16 pm
I should clarify. You can't claim the amounts reimbursed, only the part out of your pocket (so #2) . However, if the employer added the reimbursed amount to your income as a taxable benefit, then you would claim the full amount. Normally an employer won't show reimbursed tuition as a taxable benefit, but some may.
Makes sense. Thanks!
Member
May 30, 2011
370 posts
109 upvotes
Winnipeg
My common law partner and I split March of 2017. Would we still file out taxes together? They are able to claim my disability tax credit and other tax benefits from me, so would they benefit from any of that for the 3 months we live together or does it work differently?
Member
Sep 22, 2014
265 posts
78 upvotes
Ottawa, ON
My wife and I work shift work and we have our daughter in parttime daycare. The days she's in are pretty much scattered every month. Are we obligated to submit our work schedules to prove we needed daycare those days? We pay about 250-350/mo in part-time daycare.
Deal Addict
Jul 26, 2012
1005 posts
29 upvotes
cashinstinct wrote:
Jan 5th, 2018 11:35 am
No extra fees or taxes, it's disclosure only, but there are penalties if you don't file Form T1135.

https://www.canada.ca/en/revenue-agency ... t1135.html

$100,000 threshold based on adjusted cost base of the asset in Canadian currency.

Where do you hold your US stocks? non-registered account (taxable account ) ?

http://www.advisor.ca/tax/tax-news/unde ... 135-151683

SPECIFIED FOREIGN PROPERTY (SFP) does not include foreign property held within registered plans like RRSPs, LIFs, RRIFs, LIRAs, TFSAs, RESPs and RDSPs.


The amounts that have to be reported are the highest fair market value during the year.
This amount may be based on the highest month-end fair market value that appears on the investment statements.
The fair market value at the end of the year must also be reported on a country-by-country basis.

Amounts reported on the T1135 form are required to be determined in the applicable foreign currency, and then converted into Canadian dollars.

When in doubt, file the T1135. There are no penalties for filing it even if it is not required.


___

Note: this is not tax advice. I have no idea what I am talking about, links fyi only, etc etc.
What if you are borderline $100,000. On my broker last month it says $81,xxx worth of US stocks is in a value of $101,xxx cdn currency but now that the USD currency has dropped for some reason it says it is worth $99,xxx in Canadian currency now. How do you determine if you are actually over the 100k limit in cdn currency. My broker doesn't seem to give me the exact amount the stocks were worth in Canadian currency. It gives me it in USD currency it was purchased on but not Canadian. Do I have to determine the exchange rate of the day I exchanged the currency or the date it the stocks were bought? It's just that I am so close to the 100,000 amount and I can't tell if I am actually over it or not
Deal Fanatic
User avatar
Apr 29, 2008
5903 posts
1611 upvotes
Montreal
taeyang987 wrote:
Jan 9th, 2018 11:08 pm
What if you are borderline $100,000.
I would file the Form when in doubt
Penalties are so high for not doing so.

Brokers offer garbage support on this issue, you are on your own to do calculations.
Newbie
Aug 18, 2017
15 posts
5 upvotes
How do you report adsense money? Can i write off my phone and internet against it?
Sr. Member
User avatar
May 29, 2005
560 posts
83 upvotes
Nepean
T1135 and Stock Options and RSUs.

I've submitted a T1135 for a few years but I'm still not sure how to fill it properly. Here are my questions:

Vested but not exercised stock options with a strike price of $25 - what's the ACB?
Unvested stockoptions with a strike price of $25 - what's the ACB?
Vested - Restricted Stock Units at a given price of $0 but stock price was $25 at time of vesting - what's the ACB?
Unvested Restricted RSU given at 0$ but current price is $25 - what's the ACB?

The last few years I've just been giving them all the information so that they can figure it out.

Thanks.
Newbie
Nov 22, 2016
6 posts
I am setting up my holdco to own opco, and give my spouse non voting shares. It is not a services corp, should I give my wife 10% of common also so I can potentially income split? I understand the government hasnt clarified the "income from related business" part of the TOSI, but should I give her 10% anyways to be safe? My goal is to split dividends with my wife but still control the holdco. Thanks!
Jr. Member
Sep 15, 2013
162 posts
10 upvotes
Greater Vancouver
Hi James, I have about 40K saved up in my TFSA, no RRSP. I'm preparing to buy a home and my co-worker told me to open an RRSP and move 25K from my TFSA to the RRSP. Then wait for 90 days and withdraw from the RRSP as part of the HBP. This way, I am able to claim a lower tax bracket and get tax back. Is this true? How does this work?
Deal Addict
Aug 30, 2011
2678 posts
621 upvotes
Ottawa
2001CivicDX wrote:
Jan 10th, 2018 6:14 pm
Hi James, I have about 40K saved up in my TFSA, no RRSP. I'm preparing to buy a home and my co-worker told me to open an RRSP and move 25K from my TFSA to the RRSP. Then wait for 90 days and withdraw from the RRSP as part of the HBP. This way, I am able to claim a lower tax bracket and get tax back. Is this true? How does this work?
Could be beneficial for you, but keep in mind, you need to pay back the amount you withdraw from your RRSP (or else it will be added to your taxable income) Read the link for all the details... https://www.canada.ca/en/revenue-agency ... -plan.html
Sr. Member
Jun 10, 2008
948 posts
82 upvotes
2017 RRSP contribution room = 19,000
2017 Employer Pension Adjustment = 11,000 (3,000 Employee Contributions 8,000 Employer Contributions)
Bonus paid out in Feb 2018 transferred directly to RRSP = 10,000

How much of the 10,000 RRSP contribution can I claim as deduction in my 2017 taxes?

1) The entire 10K and my 2018 contribution room will be reduced by the additional 2K (assuming I have enough 2018 room) or
2) Only 8K since that was the only remaining room for 2017 and the additional 2K will carryover eligible to be claimed in the 2018 tax year onwards?

Logically, option 2 seems to be the right answer but I was tinkering around in SimpleTax by increasing the RRSP contribution amounts - instead of the 10K above if I entered 19K, it actually deducted the full 19K + the 3 K from the pension adjustment, and did not give me a number for my 2018 contribution room (If I entered only 10K then it shows me an adjusted 2018 contribution room). That can't be right is it?
Newbie
Sep 3, 2014
23 posts
WINNIPEG
I’am Canadian citizen current living in Australia ( just received permanent residency). I have been away from Canada for more than a year now. Do I need to file my tax for 2017? If yes, how?

Can I file tax in Australia and Canada ?

Thanks for the reply!
Newbie
Jan 10, 2018
6 posts
21 upvotes
Hi James,

I have a question regarding principal residences and change in use:
I bought a property in 2013 as my principal residence and rented it out from 2014-2017.
I filed a 45(2) election to keep the property as my principal residence and I believe this means that the election expires at the end of 2017.
If the property's cost base was $250k in 2013 and FMV was $400k in 2017, what happens to the cost base now that the 45(2) election expired?

If I subsequently sold the property in 2019 for $450k, would the principal residence exemption only apply for $400k-$250k from 2013-2017?
Or would it apply to all years? (450k-250k) x (5+1)/7.

Any advice would be greatly appreciated.
Newbie
Jun 5, 2010
14 posts
1 upvote
Nova Scotia
Hello,

I made an RRSP contribution in January 2017 for my maximum for the year. Then in July 2017 I signed up for a company RPP which had about $3000 in total contributions by the end of 2017.

Problem is this put me over my RRSP limit for 2017. I believe there is a lifetime $2000 amount you can over contribute and not claim, but not be penalized for, either.

This still leaves around $1000 - what’s the best way to deal with this (given nothing has been filed yet)?

Thanks!
Darren

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