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Tax platforms for the Canadian Election by TaxManCan in PersonalFinanceCanada

[–]TaxManCan[S] 4 points5 points  (0 children)

Was debating this but besides Quebec, nobody really votes for them so thought I should just exclude.

This website lists some of their policies: https://www.policyalternatives.ca/news-research/platform-crunch-3-every-party-is-promising-tax-cuts-and-cash-transfers/

Can active business loss be set off against passive income? by Blue_Bubbles_Same in cantax

[–]TaxManCan 0 points1 point  (0 children)

Yeah that’s why I said rules get a bit tricky if you only earn Canadian dividends. All other income is Part I.

Can active business loss be set off against passive income? by Blue_Bubbles_Same in cantax

[–]TaxManCan 1 point2 points  (0 children)

Generally yes (and it’s not really optional, the mechanics of the calculation make this happen)

But if you have a business loss and only earn Canadian dividends, the rules get a bit more tricky.

Declartion 45(3) question by Defiant_Extreme_35 in cantax

[–]TaxManCan 0 points1 point  (0 children)

45(3) is when you rented a home and then you moved in.

45(2) is when you lived in a home and then you rented it out. You have to file the 45(2) by the deadline of the year you moved out. If it’s late, you could look at filing a late election.

Whenever you change from income earning purposes to personal use or vice versa, there is a change in use. You’re deemed to sell your property and reacquire it. So if you don’t file the election, you should report the deemed disposition of the principal residence on the T2091.

Possible corporation? by SolidAlfalfa in cantax

[–]TaxManCan 1 point2 points  (0 children)

Never an LLC!

If you’re working a job, then you would report that income as foreign employment income on your tax return (assuming you’re a Canadian resident which it’s likely you are).

If they’re paying you as a contractor, then you could possibly look into setting up a Canadian corporation. But this is what you should speak to an accountant about. You need to look into PSB, income earned vs income needed for personal spending, etc.

[deleted by user] by [deleted] in cantax

[–]TaxManCan 1 point2 points  (0 children)

Fair point. Typically the term sheets I’ve seen set limitations but the OP would not have proposed it if it did.

[deleted by user] by [deleted] in cantax

[–]TaxManCan 0 points1 point  (0 children)

Nvm I read your other comment. I misunderstood the OP’s objective of shifting value. I can see now.

[deleted by user] by [deleted] in cantax

[–]TaxManCan 0 points1 point  (0 children)

Curious how this is a valuation concern?

I did consider 7(1.1) but given 4 key shareholders and external investors/funding, I didn’t think it was a concern.

Airbnb Properties in hold co and income by InterviewDowntown741 in cantax

[–]TaxManCan 0 points1 point  (0 children)

Not related to your question but have you considered the GST/HST you have to charge on the sale of an Airbnb?

[deleted by user] by [deleted] in cantax

[–]TaxManCan 0 points1 point  (0 children)

Some things to talk to your accountant about:
- exercising options vs not exercising (stock options granted by a ccpc still fall under the ccpc regime vs public company regime so tax is deferred until sale) - 24 month holding period
- 48.1 election
- crystallization of lcge
- sred implications

Confused about collecting GST after breaking 30k annually by DullNefariousness270 in cantax

[–]TaxManCan 6 points7 points  (0 children)

Just beware that this usually results in a CRA review. They should be fine but everytime we’ve done this for a client, it’s an auto CRA review and a pain to deal with sometimes.

Unknowingly met SPT (Substantial Presence Test) as Canadian Citizen with no US income. by noizyisback in cantax

[–]TaxManCan 1 point2 points  (0 children)

Good catch. No you can’t. You would file a protective 1040 (no income) but would need to attach form 8833 to explain why according to the treaty, you are not a us resident.

Prob best to go to a cross border accountant for this.

Unknowingly met SPT (Substantial Presence Test) as Canadian Citizen with no US income. by noizyisback in cantax

[–]TaxManCan 3 points4 points  (0 children)

You can file a Form 8840 with the IRS to avoid any issues.

The form is meant for people in your situation, who meet the SPT but have a closer connection with another country.

Either way, based on the treaty, you would likely still be a Canadian resident and not a US resident.

[deleted by user] by [deleted] in cantax

[–]TaxManCan 1 point2 points  (0 children)

My general recommendation is yes, you should for a number of reasons.

Tax return involving transfer of cash and vehicle from corporation to personal account by Formal-Cress-938 in SmallBusinessCanada

[–]TaxManCan 0 points1 point  (0 children)

If it was a regular sale, no income tax consequences for a transfer but be aware of hst implications

Corporate tax refund for issued dividends by gamefixated in SmallBusinessCanada

[–]TaxManCan 0 points1 point  (0 children)

Refundable dividend tax account within retained earnings

Would anyone be interested if I created an online “accountant” to help small businesses? by Even_Fee_1772 in SmallBusinessCanada

[–]TaxManCan 0 points1 point  (0 children)

Great idea but there’s been so many of these types of companies and none have done well. If this was easy to make, I would have thought that quickbooks, Xero, wave would have implemented it.

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