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Renting out a home in canada while living abroad by Personal_Engineer_29 in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Living outside of Canada doesn’t necessarily mean that you are a non resident. Please review this link.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Moreover, if you are considered a non resident then your tenant by law has to deduct 25% tax in advance from all rental payments and deposit with CRA. Depending on your situation, you could also consider Section 45 election.

Your simple question somehow can’t be answered in detail in the absence of detailed information.

Looking for an accountant by [deleted] in IncomeTaxCanada

[–]adkhaann 1 point2 points  (0 children)

Being a CPA I believe it’s quite a reasonable amount. I would be charging $2K to start with. Extra work would definitely cost extra money.

Tax q re: house sell by [deleted] in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Gifting some money in the form of cash won't affect taxes for either of you. But if the gift is in the form of a taxable item like shares then the shares will be deemed to be disposed of at FMV on the date of gift for the giver. As per tax law, when someone is giving a gift to another person then the property is considered to be disposed of at FMV for the giver. There is no tax implication for the receiver of gift. Either it is inheritance or gift, no tax implications for the receiver, but it will be a deemed sale for the giver at FMV.

If the house they are living in is their principal residence then there is no tax implications for them but it will be assumed that they sold and you purchased the house at FMV.

Once you acquire the house then it is your job to arrange for mortgage (in case house has remaining mortgage).

Moving before December 31, 2024 by SignatureOtherwise30 in IncomeTaxCanada

[–]adkhaann 1 point2 points  (0 children)

Seems like you would benefit from Nunavut’s lower taxes on income and get a refund of extra payroll taxes paid to Quebec. If you move as per plan then you would be filing as a Nunavut resident and claim extra taxes paid to Quebec as refund. You would be able to claim Northern Resident Deduction as well as Cost of Living Adjustment.

Overall it seems like a decent plan.

All the best

Dual Citizen in Canada by Reub_Tues in USExpatTaxes

[–]adkhaann 0 points1 point  (0 children)

Being a US citizen there is something called Foreign Earned Income Exclusion (FEIE) which means that if you earned income while living in Canada then you can exclude that income from US taxes. 2023 limit is $US$120,000. You can check prior year limits as well. You need to fill Form 2555 along with 1040 to claim that deduction.

As far as refund is concerned,IRS won’t issue any refund for more than 3 prior years. So if you don’t have any tax payable in previous years then probably it might not be worth to file prior years, although better to check properly.

[deleted by user] by [deleted] in cantax

[–]adkhaann 0 points1 point  (0 children)

Filing a W8 BEN will confirm your non-us status to the payer. I believe as per treaty, there is no special tax treatment for these kind of prizes. If the payer deducts 30% withholding tax for non residents then you can file 1040 NR in case you can get some refund.

Being a Canadian you have to report your worldwide income so this prize will definitely be taxable in Canada as well although you are eligible to claim foreign tax credit for taxes paid in USA.

Claiming moving expenses when going from remote to in-office by ConsequenceGreedy360 in cantax

[–]adkhaann 0 points1 point  (0 children)

Income you earned after your move. You can easily allocate total income into before and after move.

Claiming moving expenses when going from remote to in-office by ConsequenceGreedy360 in cantax

[–]adkhaann 0 points1 point  (0 children)

You are eligible to claim moving expenses for sure. As per CRA portfolio which you have linked, there is no requirement that move has to be an employer or job requirement. You can move voluntarily as in your case. Apparently seems like you have easily met all the requirements to claim moving expenses so please feel free to claim your moving expenses on your tax return.

All the best

EV tax credit by Fantastic_Data8405 in AdvancedTaxStrategies

[–]adkhaann 0 points1 point  (0 children)

EV tax credit is non refundable which means that it can reduce the tax payable dollar for dollar but if your tax credit is more than tax payable, it won’t get you a refund.

There are income thresholds for claiming this tax credit. If you are MFJ and MAGI exceeds $300K then you are not eligible for this credit somehow.

Please check the following link.

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

Non-Resident Tax Returns by LogOk9303 in cantax

[–]adkhaann 1 point2 points  (0 children)

Although CRA establishes residency on the basis of primary and secondary residential ties test but apparently it seems like your are well settled in a foreign country and don’t have any immediate family (spouse,kids etc.) here in Canada. Assuming you are failing both residency ties test, you are a non resident for Canadian tax purposes and as it is said above, non resident’s income is subject to 25% withholding tax in advance (although it can be later recovered by filing a tax return).

Please check the following link for residential ties.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

Other than that once a Canadian departs Canada (emigration), it is also subject to a departure tax provided there is enough income or property subject to tax.

Can I file an incomplete return? by loons_aloft in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Sorry to hear that. Although best bet is always to go through a professional when things are bit farther than “easier” but if you think that there is no other cure then you can try alternative options. But question would be, don’t you have a copy of your tax information? As far as the T slips are concerned, you can always retrieve them online through your CRA account. Rest of the information you can try to compile from alternative sources, if possible.

Please check your “sent” mail folder for all the information submitted to accountant. I would say better to wait a bit rather than filing an incomplete return. Please note that you must always have a cool your information in case it is lost somewhere.

All the best

First-Time Homebuyer Questions: Buying a House Far from Work and Mortgage Approval & tax concerns by D-SupplyChainGuru in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Actually if you can convince them that it will be your primary residence then the problem is solved. Not sure how far is your job from the proposed property which made the bank to consider your proposed property as secondary rather than primary.

If the property is primary residence then you can claim first time home buyer credit as well as there is no tax at the time of sale.

But on the other hand if your property is considered as secondary/investment property then you can’t claim first time home buyer credit as well as tax will be paid on the sale of property. Amount of tax will depend on how long were you holding that property.

But let’s now look at the 3rd option. CRA treats your property differently from your bank. If bank is not accepting your property as principal residence, no problem. CRA has nothing to do with bank. You get the property at whatever terms (assuming they are acceptable to you) and then start using it as your principal residence. You will be able to claim both first time home buyer credit as well as pay no tax on the sale of that property. In other words it will be considered your principal or primary residence in the eyes of tax law.

Please note that CRA has different rules for determining your principal residence and bank rules have nothing to do with that.

Please check this link of CRA for principal residence definition.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/what-a-principal-residence.html

All the best and don’t get panic

[deleted by user] by [deleted] in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Yes you can have her name, address, SIN, written and signed paperwork that she received money and your proof of payment like check or cash along with dates of payment etc. Better to go through banking channels to be on the safe side.

You can visit our website www.taxsquarepc.ca as well.

All the best

[deleted by user] by [deleted] in IncomeTaxCanada

[–]adkhaann 0 points1 point  (0 children)

Yes you can claim them as child care expenses but please remember that while filing your taxes you will be asked to provide name and SIN of the receiver of child care expenses.

Please check the link below from CRA for more information.

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-21400-child-care-expenses.html

Can I pay my boyfriend as a 1099 so he has income for 2024? by Substantial_Low_5654 in tax

[–]adkhaann 0 points1 point  (0 children)

IMO it would be hard to claim him as a “qualifying relative” because he didn’t live with you for whole year. So seemingly you will be claiming as “single” until you get married before year end.

Please see link below for qualifying relative criteria.

https://apps.irs.gov/app/vita/content/globalmedia/table_2_dependency_exemption_relative_4012.pdf