Personal Finance

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

  • Last Updated:
  • Sep 11th, 2018 12:40 pm
Newbie
Jan 17, 2011
6 posts
Montreal
@ JamesCPA

Need advice : I currently earn 100% commission income from my employer. In order to pay less source deductions my employer has suggested that I invoice him with a GST/PST # and by doing so he could pay me without any source deductions.

I currently have a ton of employment expenses that I am able to claim against my earnings with supporting documents from my employer (T2200, T777 etc.)

Firstly, Should I incorporate or can I simply get a Quebec business number & register for PST/GST?

Secondly, How to go about remitting preemptive payroll taxes or can I simply wait until end of year to remit?

Basically need advice on best structure to enhance cash flow during the year without paying mad taxes up front through my employer.

P.S. I already max out my RRSP and earn more than needed to fund my expenses and RRSP's
Newbie
Feb 17, 2013
23 posts
KELOWNA
Hi there, thanks in advance for your help!

Does the CRA automatically get send T2202A forms from Universities? Specifically UBC?
Deal Addict
Aug 30, 2011
2984 posts
764 upvotes
Ottawa
92coreilly wrote:
Feb 10th, 2018 3:57 am
Hi there, thanks in advance for your help!

Does the CRA automatically get send T2202A forms from Universities? Specifically UBC?
No, CRA does not get a copy of the T2202a.
Jr. Member
Nov 30, 2006
162 posts
32 upvotes
I closed on our first home in late 2017. I am common law living with my fiance, who is a full time student.

We were going to use the credit, however, we do not have any room left on our returns.

I was the only one that worked in 2017, and with all my credits , my 81K gross turned into 31K taxable, so I am getting all my taxes paid back, 15.5K.

I will be carrying over all her student tuition expenses, as she will start working this April, and can claim it next year.

My question Is, since I have no room left, can we claim a house bought in 2017, our first ever house we have owned, on our 2018 return?

I've read the criteria on the website and it seems unclear to me.

Thank you
Member
Feb 2, 2007
490 posts
254 upvotes
GTA
batMan07 wrote:
Feb 12th, 2018 8:11 am
I am common law living with my fiance, who is a full time student.

We were going to use the credit, however, we do not have any room left on our returns.

I was the only one that worked in 2017, and with all my credits , my 81K gross turned into 31K taxable, so I am getting all my taxes paid back, 15.5K.

I will be carrying over all her student tuition expenses, as she will start working this April, and can claim it next year.
The tuition credit can be transferred to a spouse only in the year it was "earned", and only to the extent it's usable by the spouse. Any portion left over can be used only by the student, in subsequent years.

Therefore the tuition credit carryover belongs to your fiance and can be used only on her future tax returns.
Member
Mar 13, 2012
327 posts
81 upvotes
Sarnia
My question Is, since I have no room left, can we claim a house bought in 2017, our first ever house we have owned, on our 2018 return?
tldr: No.


From archived information:
13. In which taxation year can I claim the HBTC?

You can claim the HBTC in the taxation year in which the qualifying home is acquired.
And from this year's explanation for Line 369:
Line 369 – Home buyers' amount

You can claim $5,000 for the purchase of a qualifying home in 2017 if both of the following apply:

you or your spouse or common-law partner acquired a qualifying home; and
you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
Newbie
Aug 27, 2008
26 posts
10 upvotes
TORONTO
Hello there, I am a Insurance broker and filing my 2017 taxes online. In regards to: "Annual Union, Professional or Like Dues", I am curious if I can Claim my annual Dues for My licences required by law to sell and service insurance accros Canada. IE. Annual RIBO renewal licence fee and other Fees for other provincial licences to sell and service insurance policies. The Rev Canada website on this on one had have me thinking I can claim, but other wordings on the same site have me thinking maybe I cant claim these Dues. If you know if I can claim these or not it would be a great help so I can file my 2017 Correctly. thank you
Newbie
Jan 26, 2016
6 posts
Toronto, ON
Winding up Estate Account

I am the executor of my late Father and asking for help about tax issues with the estate account.

After probate(the bank insisted), his RIF got transferred to the estate account which is a checking account with the bank. That's all for his estate.

His last T1 return was filed and income tax was paid on the RIF transferred. Now, I plan to distribute the estate to the beneficiaries once I got the Notice Of Assessment.

Questions:

Is a T3 Trust return needed for the estate account after distribution?

Do the beneficiaries need to report that on their tax return?

Thanks in advance for your help.
Member
Mar 13, 2012
327 posts
81 upvotes
Sarnia
Is a T3 Trust return needed for the estate account after distribution?

Do the beneficiaries need to report that on their tax return?
Not an expert, but a fellow executor. Have you applied for the Tax Clearance Certificate from CRA? It is recommended you wait to receive this before doing a final distribution of the estate. Otherwise, if there are any taxes owing, even from previous years, you as executor are responsible for them. If you don't anticipate any additional taxes owing, you can do a partial distribution to the beneficiaries.

T3 - This should be filed if the estate has generated any interest income since the date of death. The CPP death benefit should also be reported on this.

As there are no inheritance taxes in Canada, the beneficiaries do not need to report the inheritance on their taxes. Obviously, they would pay income tax on any gains if they invest their inheritance.
Newbie
Feb 3, 2015
37 posts
19 upvotes
Kirkland Lake, ON
PEACEISGOOD wrote:
Feb 12th, 2018 2:54 pm
Hello there, I am a Insurance broker and filing my 2017 taxes online. In regards to: "Annual Union, Professional or Like Dues", I am curious if I can Claim my annual Dues for My licences required by law to sell and service insurance accros Canada. IE. Annual RIBO renewal licence fee and other Fees for other provincial licences to sell and service insurance policies. The Rev Canada website on this on one had have me thinking I can claim, but other wordings on the same site have me thinking maybe I cant claim these Dues. If you know if I can claim these or not it would be a great help so I can file my 2017 Correctly. thank you
I'm pretty sure licence fees are deductible as expenses against income. Memberships in Associations (such as Teacher's or Nurses etc ) are deductible as union dues. If you belong to a professional insurance broker's association then they would be 'union dues'

See- https://www.canada.ca/en/revenue-agency ... tions.html
Member
User avatar
Jul 1, 2005
441 posts
23 upvotes
If someone take money out of HELOC to use as down-payment of a pre-construction condo property for future rental purpose. How does deduction work for the interest on the HELOC balance? The money is used with the intention to generate rental income. But there is no actual income to deduct. Does the interest expense carry over to future date to be expensed against the rental income? Or do they become capital cost and deduct against the capital gain one day when the property is sold?

Also, once I take ownership of the property and start receiving rental income, can I start expensing the HELOC interest payment (for the downpayment) as current expense (in addition to the interest of the mortgage of the rental property)?

Thanks
Newbie
Jan 31, 2017
16 posts
Hello James (or anyone who can answer)!
My wife was on maternity leave for like 10-11 month in 2017. So she does have some small employment income. We have childcare expenses, that AFAIK are to be reported by the spouse with the least income. But in this case there is almost no income. Can these expenses be reported by me (full year worked)?
Thank you.
Deal Fanatic
User avatar
Nov 19, 2004
7911 posts
1271 upvotes
Cambridge, ON
zhekas wrote:
Feb 14th, 2018 10:23 am
Hello James (or anyone who can answer)!
My wife was on maternity leave for like 10-11 month in 2017. So she does have some small employment income. We have childcare expenses, that AFAIK are to be reported by the spouse with the least income. But in this case there is almost no income. Can these expenses be reported by me (full year worked)?
Thank you.
Lower income spouse must claim unless they were in school or had a physical/mental infirmity.
Newbie
Jan 31, 2017
16 posts
don242 wrote:
Feb 14th, 2018 10:51 am
Lower income spouse must claim unless they were in school or had a physical/mental infirmity.
I understand that. But I also know that the childcare expenses can be claimed only against employment income. So If my wife was working only month or two, can she claim the expenses that were on these months only, and the rest will be claimed by myself?
Newbie
Dec 15, 2010
24 posts
11 upvotes
Calgary
Hi, hoping James or someone else can help me out.

I'm aware that I can contribute to my RRSP one year and not claim it (in whole or in part) until a future year. Is this as simple as just keeping a tally of contributions vs. claimed amounts?

Or does the entire contribution need to be reported along with the claimed amount.


Thanks very much for all of your help!

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