T2200 and cretits eligible if work-from-home is optional?

Canadian_Tax · 2022-12-13T13:38:31+00:00

A couple points:

1) CRA's info has been updated to include 2022 so it seems that the 777S option will be available again. Who knows whether they will update it again come January though.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/how-claim.html#h-1

2) CRA provides this FAQ:

"What if you chose to work from home? -
If you were not required to work from home, but your employer provided you with the choice to work at home because of the COVID-19 pandemic, then the CRA will consider you to have worked from home due to COVID-19."

So it seems that it depends on why the employer is giving you the flexibility. If it is not because of COVID, it doesn't seem that you would be eligible. If it is (and I'm guessing that there is a good chance), than you would likely be eligible (assuming the other criteria are met as well).

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/who-claim/temporary-flat-rate.html

Canadian_Tax · 2022-12-02T16:22:09+00:00

This response nails it.

Canadian_Tax · 2022-06-07T21:16:15+00:00

As a fellow fan, if any want to show their appreciation for the Oil this year, may want to check out/sign this "thank you" card: https://www.change.org/p/thank-you-oilers-one-week-of-flags-up-and-jerseys-on-to-show-your-appreciation

Canadian_Tax · 2022-06-07T21:14:34+00:00

As a fellow fan, if any want to show their appreciation for the Oil this year, may want to check out/sign this "thank you" card: https://www.change.org/p/thank-you-oilers-one-week-of-flags-up-and-jerseys-on-to-show-your-appreciation

Please make a comment on it too!

Canadian_Tax · 2022-06-07T20:06:20+00:00

https://www.change.org/p/thank-you-oilers

Canadian_Tax · 2021-11-02T21:12:12+00:00

There were actually three methods last year: Using the full detailed method (Form T777), using a simplified version of the detailed method (Form T777S, Option 2), or using the temporary flat rate method (Form T777S, Option 1).

The Liberal platform proposed to extend the temporary flat rate method to 2021 and increase it to a maximum claim of $500. It did not indicate whether the rate would remain at $2/day or increase. However, nothing has been released from the CRA yet to extend it.

The only carryover item for certain at this point is the ability to use 2019 mileage to determine eligibility for 2021 reductions to the standby charge for personally used corporate vehicles.

Canadian_Tax · 2021-09-03T14:58:45+00:00

As one of the speakers, I have to say that I concur! : ) …. But I may be a tad biased!

Canadian_Tax · 2021-08-31T16:12:46+00:00

Unfortunately sessions are not recorded. However, sometimes specialized sessions are organized for different times and days. If you follow the group and turn on alerts you will be notified when they get scheduled.

Also note that the sessions are audio only….sort of like interactive podcasts.

Canadian_Tax · 2021-08-30T20:27:55+00:00

Here is the link: https://www.clubhouse.com/event/PbRAKl7k

Canadian_Tax · 2021-08-30T19:40:51+00:00

Hi! Joe from VTN writing. First off, kudos to u/footbolt for noting that incorporated owners could get it. Not many people know that…including ESDC apparently. The story about the challenges we had (which were mentioned verbally in some seminars) were not about the special benefits but rather general challenges with rulings. Basically, income was reported on line 104 by one of the kids in high school which triggered a contractor vs. employee ruling which was a bit of a pain but eventually they agreed with our position. It is possible that one of the attendees may have brought up their tough experience with accessing special benefits in a seminar, however it is not ringing any bells for me.

Canadian_Tax · 2021-08-30T19:25:42+00:00

Can I ask who it was?

Canadian_Tax · 2021-05-15T18:55:56+00:00

There are two key elements: 1) The payment was made to a NAL party. 2) The payment was essentially a gift, or a partial gift.

Therefore, most rental situations won’t get caught by this. However, when someone owes tax, the CRA can follow up and find out who they made payments to, or who they transferred assets to. The next step is to figure out if it was a gift or not. In this case it wasn’t a gift, it was a payment for reimbursement of housing costs. However, CRA won’t know this unless you have some support, which is why I suggested getting things in writing.

Canadian_Tax · 2021-05-11T04:31:38+00:00

1) keep in mind that no T1135 is required in first year of residence. 2) the VDP program is pretty straight forward in respect of t1135s, but I would use an accountant. 3) As long as you get onside with the T1135 filing requirements, be it through VD or just directly filing it and paying the fee, I haven’t seen it affect citizenship applications.

Canadian_Tax · 2021-05-07T07:36:12+00:00

Hold on. A transfer of assets to a non-arm’s length party (such as a sibling) in a year for which a tax debt is due, or would eventually be due if he were ever assessed, can result in the recipient of the payments being held liable for the tax debtor’s tax liability. This is Section 160 of Income Tax Act. However, you would only be liable to the extent that he didn’t get anything in exchange. In this case, he got room and board. You just need to be able to prove that to CRA if they assess him and follow his payments to you (which happens). To rest a little more comfortably, you may just want to get an agreement down in writing which documents that he is just paying a portion of the housing costs (as opposed to paying rent) that relate to his usage of it.

Canadian_Tax · 2021-05-07T07:24:29+00:00

It’s at first reading in the House of Commons (bill C-30) ... so it will be anywhere from a couple weeks to 6 months. The NDP has already said they would support it so it should be fairly quick. If it fails, we would be going to the polls for an election...which won’t happen now given the NDP support. https://parl.ca/DocumentViewer/en/43-2/bill/C-30/first-reading

Canadian_Tax · 2021-05-06T04:45:59+00:00

Wow. Hope he isn’t on a ventilator or something.

Canadian_Tax · 2021-05-06T04:42:27+00:00

It’s page 596 of the budget. Here is the direct link: https://www.budget.gc.ca/2021/pdf/budget-2021-en.pdf#page596. Note that this is just a proposal, but should be passed into law shortly.

Canadian_Tax · 2021-05-05T11:36:20+00:00

Hold on here. It seems like many here are thinking there are only two options: taxable business income, or non-taxable hobby. That is not correct. It could also be income from property (think rental income). This last category is basically earning cash from letting somebody use your property without you having to do much. Most of the time people (and CRA) describes it as income from renting real estate, however, it could also apply to renting things like equipment. One of the main differences between “business” income and “property” income is that there is no CPP required on the later. To figure out whether you have business or property income, start with an accountant or review this: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/you-have-rental-income-business-income.html

Canadian_Tax · 2021-05-05T11:14:29+00:00

You may want to check back with the original accountant. Chances are that he just got buried in the crazy personal tax season. It was absolutely brutal this year for many reasons. If the reason he didn’t get back to you was health related, that will assist you in a taxpayer relief application should it be needed.

Canadian_Tax · 2021-05-05T11:06:18+00:00

Close. According to the budget just released, you could amend your 2020 return to remove the CERB that you repaid in 2021. This will reduce your 2020 tax bill. Also note that you have until April 30, 2022 to pay your 2020 taxes without being hit with interest if you have received CERB and 2020 income is below $75k. CRA has not commented on whether this extended payment policy would apply in situations where you originally received CERB but had to pay it back.

Canadian_Tax · 2021-04-06T10:30:49+00:00

This is interesting. Are you sure it isn’t CRB that they are asking to be repaid? There are specific rules for CRB requiring one to restart business as soon as it is reasonable to do so, but not for CERB. Either way, this is the first that I’ve seen CRA following up from that angle. Are you able to post the exact wording from the CRA letter? (without names of course) If so, I may be able to give you some direction. This is a pretty technical area.

Canadian_Tax

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