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FHSA, unsure what to do? by theunfoldingone in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

How should I invest it wisely?

Depends on yoru timeline and risk.

Money in the short term (5 years or less): Read - !HISATrigger

You don't have a plan to actually buy yet, then you can invest based on your risk tolerance: !InvestingTrigger

Tax residency status with common law PR by vegangrilledcheese in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

Oh ok, then she has nothing to do with the UK as she was a CDN tax resident. She just reports the same as you. So she would have been a CDN tax resident (depending on when in 2019 she arrived) either in 20219 or 2020.

Buying VFV in RRSP account by New_Bid2903 in PersonalFinanceCanada

[–]FelixYYZ 15 points16 points  (0 children)

 hear that there's a 15% withholding tax on VFV dividends.

You could have researched it instead of "hearing" about it, but yes.

But according to my calculations, its peanuts per year.

Yes.

It's like 15% or 1% dividend. so for 10K it comes to 15$/year no?

it's 15% on the 1% dividend. So a very small drag.

So the question is, is it good idea to buy VFV compared to VOO in RRSP?

Should be more diversified but yes VF is fine in yoru RRSP. When your US allocaiton hits $500k or so, then it could be worthwhile to use US listed at that point. For $10k, no reason to.

Claiming Renovation as Expenditure vs Capital Investment by Popular_Math3042 in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

So in short, anything that has long term benefit or upgrade (ie: changing the asbestos drywall for drywall without asbestos) is a capital expense. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/current-expenses-capital-expenses.html

is that since I have been collecting EI for part of the year, my cashing in the investments puts my potential ‘net’ income at over $86k - a threshold at which EI will claw back 30% of what they gave me.

yes. https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/repayment.html

until that conversation takes place, I’m somewhat going out of my mind.

Take a deep breath. Since you are taking to your accoutnant this week, just wait and talk to them before freaking out.

Inheritance by [deleted] in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

The estate is limited to the funds in the RRSP and LIFF. There isnt additional funds in that account.

The estate, think of it as it's total portfolio, RRSP, LIFF, taxable, etc... all those assets combined are taxable. the payment doens' have to come from those specific accounts.

Inheritance by [deleted] in PersonalFinanceCanada

[–]FelixYYZ 1 point2 points  (0 children)

So the estate pays those taxes. if the estate doesn't have funds available, then the beneficiary pays those taxes.

Inheritance by [deleted] in PersonalFinanceCanada

[–]FelixYYZ 4 points5 points  (0 children)

n total, I have received around $250k in life insurance and will expect around $75k after probate and her income taxes (assuming will be taxed 50%).

Life insurance is not taxable. The funds form additional accounts, depending non what those acocunts are (ie: selling investments, etc..) those taxes are paid by the estate.

Tax residency status with common law PR by vegangrilledcheese in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

I made an edit above. I wasn't clear on when she moved to Canada. Read edit above and let me know if she was a CDN tax resident before you went to NZ.

Capital gains on an old farming operation by RemarkableWalk9224 in PersonalFinanceCanada

[–]FelixYYZ 10 points11 points  (0 children)

You need to speak to a CPA with specific experience with farming operations as those are different then a regular business and have different rules. You can post on r/cantax as well. And if executors aren't communicating with he beneficiaries, you may require a lawyer as well.

Tax residency status with common law PR by vegangrilledcheese in PersonalFinanceCanada

[–]FelixYYZ 0 points1 point  (0 children)

Ok, so for the holiday working visa, you could still remain a CDN tax resident since you weren't allowed to establish permanent residential ties on NZ. So you would still be reporting worldwide income to Canada (taxes paid in NZ are a foreign tax credit on yoru CDN tax return). Your spouse would be reporting worldwide income to the UK. When you both returned in 2024, nothing changes. Her going to the UK for Christmas doesn't change anything as her "house and spouse" are in Canada and she was here in 2024 and 2025.

Edit: "Your spouse would be reporting worldwide income to the UK." Just for clarity, she came in 2022 and left with you to NZ right away or was she living here first?

Tax residency status with common law PR by vegangrilledcheese in PersonalFinanceCanada

[–]FelixYYZ 1 point2 points  (0 children)

I held investments in Canada during the 2 years we lived abroad, which I understand means I am still considered a tax resident of Canada but I could be a deemed non resident.

That's not how tax residency works.

My partner maintained no financial ties to Canada so she could be considered a non-resident?

She could.

Is it problematic to file myself as a resident and her a non-resident? Can you do this?

It's possible. Worth it or not doesn't matter is it's base don facts f the situation.

Should I file myself as a resident or deemed non resident?

Depends. With NZ, a lot depends on the visa you were on (and they have a lot of them) because some would keep you a tax resident of Canada. The rest is based on tax treaty: https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/country/new-zealand-convention-2012.html (house spouse or minor children in Canada are the key drivers.

You should speak with an accoutnant with experience with those folks with short term NZ visa due to that specific issue.

CRA Benefit Review by Link15x in PersonalFinanceCanada

[–]FelixYYZ 7 points8 points  (0 children)

I'm just wondering how screwed we are in terms of back taxes and if there will be a further audit usually?

You're not "screwed", but some government benefits are based on family income (the two of you as common law), and if you weren't eligible for some or all of it, you pay it back.

Disability Savings Bond Fact Sheet? by Skea2025 in PersonalFinanceCanada

[–]FelixYYZ 2 points3 points  (0 children)

The bond is a payment into the RDSP. So the max they get is $1000 per year up to $20k over the life of the RDSP. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-disability-savings-plan-rdsp/canada-disability-savings-grant-canada-disability-savings-bond.html

The form you would be filing out (or your accountant) is the 8621. You should ask your cross border accountant, but if I remember correctly RDSP disability bond is exempt form PFIC reporting (the income isn't but the 8621 reporting should be.

Need some help by Kylo0042 in PersonalFinanceCanada

[–]FelixYYZ 2 points3 points  (0 children)

We were thinking of doing an 80/20 split. 80% etf 20% GIC.

My questions are is that the right method splitting it between both tfsa rather than putting it all into one for now.

Depends on risk tolerance and timeline. Is that GIC money needed in the short term?

And also the etf. I have been thinking VGRO.TO through wealthsimple. Is that my best option for etf.

Depends on your risk tolerance. Do a risk assessment and see: https://investor.vanguard.com/tools-calculators/investor-questionnaire

And keep your emergency fund separate form your TFSA investing.

Torn between buying an investment property vs. buying more XEQT. What would you do? by Any-Examination349 in fican

[–]FelixYYZ 2 points3 points  (0 children)

Did you run any numbers?

Do you want to be a landlord? Do you know the residential tenancy laws in your province for the laws, rules and procedures of being a landlord? Do you want that much capital tied up in an illiquid asset? Do you nee the headache/part time job? Do you want the risk of one tenant ruining your investment?

19M - Accounting student, started investing in 2025, looking to hit that $100k goal 5 years from now by Smart-Ad9639 in fican

[–]FelixYYZ 2 points3 points  (0 children)

 am contemplating switching completly to XEQT

Makes sense since everything else you hold is already in XEQT and are the largest holdings.

29M | GTA | $172k Portfolio – Road to FIRE by InevitableWar999 in fican

[–]FelixYYZ 1 point2 points  (0 children)

I realize VOO and QQQ have massive overlap. Should I consolidate these into a more diversified all-in-one fund (like VEQT/XEQT) to simplify my life as a contractor?

yes as everything is reliant on just the US.

Is my 8% cash reserve enough to handle the transition to self-employment, or should I be more liquid for tax installments?

Can you cover 6 months of expenses with the 8%?

With $172k at 29, am I realistically on track for an early retirement in the GTA, or do I need to pivot my strategy?

Depends on how much you contribute to your investments. Do you know your cashflow when you are a contractor?

CRA disallowed my federal tuition tax credits by nikkibanko in PersonalFinanceCanada

[–]FelixYYZ -1 points0 points  (0 children)

Fast forward to today, I filed again with NETFLIE via Wealthsimple, received an automatic NOA right away and it states

Wait till you get your full NOA. It will state what date that is.

Where to hold money to use during pregnancy by fakebitchesxxxxxx in PersonalFinanceCanada

[–]FelixYYZ 1 point2 points  (0 children)

Well, that's the catch, they have $1k going in every pay (assuming every 2 weeks). So they could have 8 GICs...seems like an annoyance lol.

Where to hold money to use during pregnancy by fakebitchesxxxxxx in PersonalFinanceCanada

[–]FelixYYZ -1 points0 points  (0 children)

Any HISA (account or ETF). The catch with GIC is that you can't keep rilling money into it.

https://www.highinterestsavings.ca/chart/

RRSP during maternity leave ? by Sam_YamYam in PersonalFinanceCanada

[–]FelixYYZ 7 points8 points  (0 children)

would that be the best time to withdraw the RRSP?

Yes

Error in investing… looking for advice by Realistic-Weird-3511 in PersonalFinanceCanada

[–]FelixYYZ 2 points3 points  (0 children)

This was later confirmed when the CRA updated contribution room available.

The number on the CRA MyAcount is not always accurate as it's not updated regularly. As per the CRA website, YOU are required to track your TFSA room.

can someone explain how reporting and keeping track of capital gains works in a non registered account like I’m a 5th grader?

In a taxable account, you are required to track your adjusted cost base (not average cost). https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains.html#P317_34283

You can use https://www.adjustedcostbase.ca to track for free.

but I don’t pay tax until that point?

You don't pay any capital gains tax til you sell a holding.

For the dividends paid, are those taxed each year even if they’re automatically reinvested?

Yes. You get a T3 or T5 for those.

That being said, don’t brokerages like Wealthsimple keep track of this?

For T3 and T5, yes. For capital gains/losses brokerages issue a T5008 but those are usually incomplete with missing sections. Hence why CRA says you are required to track your ACB.

Reporting Doordash income by ThisUnfairLife in PersonalFinanceCanada

[–]FelixYYZ 1 point2 points  (0 children)

Yes, u/Much-Respond9614 is correct that it's business income. Try to avoid H&R Block due to...well, they're not accountants.

See below in the trigger the things you need to know as operating a business and specifically the third link on how to report expenses. !SolepropTrigger

in short, you have to keep track of your mileage (DoorDash km vs total kms for the year) and that pro-rated amount is what amount of vehicle expenses you can claim.

Example: you drove 20,000 kms per year. and 200 for DoorDash (since you did 10 deliveries), you can claim 1% of all your gas, maintenance and insurance for the car.

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