Personal Finance

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

  • Last Updated:
  • Feb 3rd, 2023 10:25 am
Member
Feb 13, 2017
232 posts
220 upvotes
ON
Are ETF shares in registered accounts (TFSA, RRSP) included when calculating adjusted cost basis for shares in a non-registered account?
e.g. I have VFV in both TFSA and margin account.
Deal Expert
User avatar
Dec 12, 2009
25570 posts
15423 upvotes
Toronto
cutepoison wrote: Are ETF shares in registered accounts (TFSA, RRSP) included when calculating adjusted cost basis for shares in a non-registered account?
e.g. I have VFV in both TFSA and margin account.
No, each account has different taxation.
Koodo $40/6GB
Public Mobile $40/15GB, $35/20GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii
Deal Addict
Mar 3, 2018
3056 posts
3433 upvotes
GTA
travelfever wrote: Had a conversation with friends how should one withdraw money, for how much each year and for how many years from RRSP with minimal taxes paid when retiring at 55?

For example, $300,000 in RRSP when retiring, total other income $5000 yearly. My take would be to withdraw yearly non taxable income amount minus $5000 yearly income until RRSP is exhausted to pay zero tax. My friends had different views on this.
With your plan the investment income earned will likely be more then the amount withdrawn each year. Meaning the RRSP continues to grow where as a large balance it may get taxed at up to 50% in one lump sum on death.

I would be more inclined to withdraw up to an amount that is subject to the lowest tax rate. Generally under $50K per year. Maybe clearing out the RRSP entirely by age 64 to qualify for GIS at age 65.
Deal Addict
Jul 15, 2009
2740 posts
1964 upvotes
will888 wrote: No, each account has different taxation.
Except when there's a capital loss in the non-registered account. A registered account can make it into a superficial loss.
Deal Expert
User avatar
Dec 12, 2009
25570 posts
15423 upvotes
Toronto
bubak wrote: Except when there's a capital loss in the non-registered account. A registered account can make it into a superficial loss.
Only if you sell in the non registered account and repurchase an identical property within 30 days in another account.
Koodo $40/6GB
Public Mobile $40/15GB, $35/20GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii
Member
Feb 13, 2017
232 posts
220 upvotes
ON
will888 wrote: Only if you sell in the non registered account and repurchase an identical property within 30 days in another account.
Can you expand on this
Deal Expert
User avatar
Dec 12, 2009
25570 posts
15423 upvotes
Toronto
cutepoison wrote: Can you expand on this
If you sell an investment at a loss in your non registered account and you want to book the loss as a capital loss to be used to offset capital gains, then you, spouse or entity controlled by you are not allowed to buy an identical property in any account within a 30 day period on either side of the sale. It is all explained in the CRA website. The idea here is that you are truly booking a loss and hedging against that loss.

https://www.canada.ca/en/revenue-agency ... -loss.html
Koodo $40/6GB
Public Mobile $40/15GB, $35/20GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii
Newbie
Apr 22, 2017
65 posts
47 upvotes
Girlfriend pays for health benefits through work. I reimburse her monthly for 50% of the cost - she doesn't claim the benefits cost on her taxes as not enough medical expenses to hit threshold. I however do have enough extra costs to make a claim on my return - can I add on the 50% I pay for extended health coverage onto my claim even though not direct to me
Deal Addict
Apr 16, 2015
1036 posts
1316 upvotes
yycaccountant wrote: Girlfriend pays for health benefits through work. I reimburse her monthly for 50% of the cost - she doesn't claim the benefits cost on her taxes as not enough medical expenses to hit threshold. I however do have enough extra costs to make a claim on my return - can I add on the 50% I pay for extended health coverage onto my claim even though not direct to me
Are you considered common-law partners for tax purposes? If so, you should be able to claim the full amount paid by both of you. If not, you're likely out of luck since you aren't paying the expenses directly. But, I'm not 100% sure on this. Anyone else?
Sr. Member
Mar 6, 2010
820 posts
333 upvotes
Brampton
I have made the mistake of investing leftover money in corporation account in dividend paying equities.
I want to learn how to prepare T2 tax return for the following items
1. How to calculate and report dividend income?
2. How to report currency conversions from CAD to USD?
3. How to report any capital gain/loss and ACB and any similar mumbo jumbo related to equities?
Can somebody please advise how can I learn the above from a tax professional or from someone knowledge enough?
Sr. Member
Apr 20, 2011
806 posts
73 upvotes
Scarborough
Any recommendations for experienced accountant in GTA specializing in completing income tax returns with T0776, HELOC, Smith Maneuver, etc.?
Jr. Member
Apr 3, 2004
199 posts
32 upvotes
Toronto
Hi James,

First THANK YOU for your time.

Question is my wife is getting Monovisc injections for her knees. She might have to go via the surgery route but thats not in the immediate future. Currently we are paying it out of pocket as neither of our insurance plans cover it. Is this claimable on our taxes? It costs $500/knee and has depending on time frame usually gets it every 6 months.
Deal Fanatic
Oct 26, 2008
6869 posts
2667 upvotes
BC
Pending James's response .........

my take is that if any employee health plan does cover it, then it is a valid medical expense claim for CRA.

That is, your plan not covering it is not the acid test.

See here for a general synopsis on this and similar joint pain remedies

The plans that do cover it seem to rule out electronic submission and require you to retroactively submit a written claim.
Presumably because they want to analyze the claim before accepting it.
Jr. Member
Apr 3, 2004
199 posts
32 upvotes
Toronto
Yea i figured insurance isnt the acid test. Prior to the change of insurance companies with the job she is with, the previous coverage covered it. New one doesnt. So its a decent chunk of change that hopefully we can gets something back for.
Deal Fanatic
Oct 26, 2008
6869 posts
2667 upvotes
BC
Yes, I would certainly claim it as a valid Medical Expense. Just list it clearly and leave it up to CRA to question it later if they choose to do so.
Jr. Member
Feb 12, 2013
130 posts
37 upvotes
Toronto
Sold my principal home (gift from parents many years ago) in 2022, wondering what info do I need for my accountant to prepare for my 2022 income tax return? Thanks in advance
Sr. Member
Apr 20, 2011
806 posts
73 upvotes
Scarborough
dainfamous41 wrote: Any recommendations for experienced accountant in GTA specializing in completing income tax returns with T0776, HELOC, Smith Maneuver, etc.?
Any help?
Deal Fanatic
Jan 21, 2014
7046 posts
4491 upvotes
I switched job middle of last year and now working for a company in Quebec even though I still live in Ontario. So when I receive my T4 (from previous company) and RL1 (from the current company), I just need to enter both slips and tax program will figure out everything for me? like QPP,CPP,EI,etc over payments?

Top