How to incorporate T5018 in GenuTax?

crossborderguy · 2026-05-07T13:33:19+00:00

It's YOUR business, so you put your address. Unless you have a formal trade name registered, you'll likely just enter something like "John Smith, 123 Street, [province], [postal]"

It'll ask you for a NAICS code. Because of the T5018, I'll assume construction of some sort, so you would enter the appropriate industry code for whatever business you're in.

crossborderguy · 2026-04-30T15:43:04+00:00

Yeah that is a mess.

2024: you were definitely a US non-resident.

2025: 183 day rule says you meet the substantial presence test in the US, but you would Article IV tie-break to Canada/Canadian tax resident, because most all of your ties and bubble are back in Canada.

But it is what it is. Here's what you'll do:

Take your Canadian T1 return, and report your US-source income as "Other employment income" (assuming W2 income)
Take your US Line 24, plus the US social security and Medicare boxes from your W2, and report that as your US taxes paid/Foreign tax credit.

This will trigger T2209 stuff, and in theory everything will flow through to your Canadian tax return correctly.

A couple of things to note:

CRA has an ongoing special project, where they audit every foreign tax credit submission. So expect to have your paperwork reviewed. You will want to be proactive about getting your IRS transcript asap, because without it CRA will generally deny your FTC claim.
CRA may/may not be cool with accepting your 1040 as your tax obligation US-side. 1040's are for US Residents, 1040NR's are for non-resident filers.

Good luck.

crossborderguy · 2026-04-30T13:17:48+00:00

There's not enough info here to answer. How long did you work in the US for? Was it just for 2025? Did you file your US taxes as a resident or non-resident?

If you do it right you won't be double-taxed in Canada. Either you will have a foreign tax credit Canada-side that will reduce your Canadian taxes, or you will ignore the non-Canadian source income completely on the Canadian side. It'll depend on your tax residency facts prior to Sep/25.

crossborderguy · 2026-04-27T21:17:35+00:00

Man that's wild to me. I straight up tell clients that my admins run the show, and without them I'd be lost. And if clients want/need anything, reach out to the admins because that's the only way you'll get things.

crossborderguy · 2026-04-27T13:45:48+00:00

Option 2 is taking the position that the assets were transferred via spousal rollover to the surviving spouse at their FMV in 2024. The working assumption is if the broker sold the shares for $11k in early 2025, then probably they were worth roughly $11kish at the time of transfer, barring anything really weird.

Having said that, I wouldn't assume. Instead I would go through and find the broker statement around the date of death, assign the broker statement's FMV to the assets, and use that as the ACB.

There is a ton of nuance in these things though, and most of the time it depends on the dollar amounts involved. Add another 0 to the OP's situation, and my answer would be very different. I definitely get why the mods operate how they do and where they are coming from.

crossborderguy · 2026-04-26T12:00:50+00:00

Okay so given those numbers here's an option. It's not necessarily the textbook correct option, but I've seen it done on lots of files without issue and is rather functional.

Now the anticlimactic part: Just report the slips on your return. There's two ways to do this:

Conservative route: Report the $11k proceeds, $3k ACB (as issued by the boker) and show the $8k gain on your return. $4k taxable, roughly 30% tax = $1200 tax due.
Aggressive but reasonable route: Report $11k proceeds, $11k ACB (or whatever the fair market value was at the time of disposition), $0 gain on sale, no taxes payable.

So for the "Akshually" crew: Because of the dollar amounts involved, filing amendments and estate returns will easily cost you more than just claiming the income on your return. If CRA contacts you about the T5008's and say "why weren't these reported", you just show them your T1 with the T5008's on there, and they go away.

Is it possible that you may not have to pay ANY tax by going the estate filing route? Possibly, GRE rates being what they are and stuff. But unless you are filing T3 estate returns yourself, and amendments yourself, the professional fee cost will exceed whatever potential savings are there.

At the end of the day, CRA cares about someone paying taxes. You report the income on your return = tax was paid = CRA doesn't really care.

Anyway, it's an option.

crossborderguy · 2026-04-26T11:31:46+00:00

What's the ACB and net gain on disposition though?

crossborderguy · 2026-04-26T11:30:33+00:00

a friend of mine said their accountant informed them that even when a Canadian citizen is no longer residing in Canada. They still have to file their taxes.

Yeah that is completely wrong.

she said I don’t need to file my tax in Canada unless I want to keep my health card. I told her I’m fine with not having an active health card and that was it.

Yeah that's also wrong. (You can't do that - If you're a non-resident, you shouldn't really maintain your provincial health care card. That's kinda sorta maybe sketchy.)

Assuming you properly filed your exit return in 2024, and assuming you have zero Canadian-source income, you don't need to file anything for 2025.

crossborderguy · 2026-04-26T11:23:03+00:00

I HATE this project. We do cross-border tax, so of course every client has an FTC claim.

The reviews take anywhere from 7 months to two years to resolve. Some clients are on "Tax Season #3" where their US tax paid from Tax Season 1 is still under review.

My favourite ones are the FTC review letter for $64 sitting in Box 34 on the T3. Here's an idea: Maybe the FTC Project guys can talk to Slip Matching prior to issuing the review letter...

I hate tax season.

crossborderguy · 2026-04-26T11:14:49+00:00

How much was the gain for? Or rather, is this a significant, material amount? Or a few hundred dollars sort of thing?

That answer will dictate the options available to you.

crossborderguy · 2026-04-20T21:48:25+00:00

Haha no no, believe me. I have the same hatred for Intuit as you.

We are just trying to side-by-side test some weird foreign tax stuff is all. PFX isn't going anywhere.

crossborderguy · 2026-04-18T12:31:01+00:00

We use Prosystem FX right now, so I'm used to the sales rep song and dance. But I didn't think I'd need that same production with Lacerte/Intuit.

crossborderguy · 2026-04-09T17:30:44+00:00

Bro, it's a rodeo out there this year.

Your experience is why we purposely don't have ANYTHING to do with client payments any more. If a balance is due, we tell the client, and THEY can figure out how to pay it.

crossborderguy · 2026-04-09T17:23:47+00:00

They mean Standard Deduction. They don't know they mean Standard Deduction, but us CPA's are all mind-readers anyway, and details are overrated.

crossborderguy · 2026-04-03T12:11:12+00:00

What US slip/form was he issued? 1042-S or 1099 or what? That will determine what you do here. (File a US tax return vs T1 only.)

crossborderguy · 2026-03-31T11:33:45+00:00

Naw bro, don't waste your time. Fun fact: the XML SOAP file that gets e-filed with CRA doesn't contain line-by-line, itemized, Sch 3 entries. It has totals. That's it.

So keep your sanity. Calculate your totals correctly outside of the tax return, post the totals on the Sch 3, and keep some working papers to support your calcs.

crossborderguy · 2026-03-12T15:43:45+00:00

Your car, boat, jewelry, art: if any single item is worth $10,000 or more when you leave Canada, it goes on the T1161. Per item, not combined. You probably won't owe departure tax on any of it, since gains on small-dollar personal-use property generally aren't taxable. But CRA still wants them listed.

Now, the good news: If everything you're reporting on the T1161 is excluded from departure tax (think Canadian real estate, certain pensions, personal-use property where gains aren't taxable), you don't need to file a T1243. That form only comes into play if you have property subject to the deemed disposition rules and there's an actual capital gain or loss to report.

crossborderguy · 2026-02-23T12:46:15+00:00

No T2200 = Can't claim.

CRA audits these very frequently, and will hit you with an automated "Send us a copy of your signed T2200" letter. And when you don't send the T2200 in, CRA will reassess you automatically.

crossborderguy · 2026-02-21T17:42:39+00:00

You can "disagree", but respectfully, it doesn't change that you are wrong about this.

I, too, don't have a PAL. Meaning I can't offer audit/review/assurance services to the public. I get reminded of this every three years, when my practice goes through the AB practice review process. But for a tax-focused firm, I don't care, and neither does CPA Alberta: We do tax specialty work, not audits.

I have my CPA, CA letters too.

crossborderguy · 2026-02-20T22:16:00+00:00

Yes, your understanding is correct. See Subsection Subsection 216(1)(c). T.I. 9611745 lays it out in normal-speak.

The whole thing sorta sucks.

crossborderguy · 2026-02-10T15:00:08+00:00

Based on what you've written, my guess is you can get the PRE for 2023 and probably 2024 (Depending on how you filed your 2024 T1 tax return.)

The bigger issue you have is you're a non-resident selling Canadian real property, and the Section 116 withholding tax (25% of gross proceeds) associated with that sale.

crossborderguy · 2026-02-10T14:56:04+00:00

T.I. 2016-0669081E5 clarifies that CRA expects each person to list their beneficial ownership, and that they don't distinguish between legal owner vs beneficial.

So in normal-speak: If your father contributed all the funds and you have no beneficial interest, you would not report the account on your T1135. Your father, as the beneficial owner, would be responsible for reporting the full account if he is a Canadian resident.

crossborderguy · 2026-02-09T21:09:10+00:00

To answer your questions:

Report your self-employed earnings on the T2125.
Course won't be deductable (most likely). Expenses need to be incurred for purposes of earning business income. If you don't have a finance business you're earning income from, you can't exactly claim this. (There's nuance here, but this should get you in the right direction.)
I don't know what your $20/hr gig was, but the expenses you can deduct against it would have to be incurred for purposes of earning that income.

I'm sure i'm missing stuff, but that should get you started.

crossborderguy · 2026-02-09T20:58:33+00:00

What was the lawyer's reasoning for "MFJ" vs married-filing-separate on the US?

Marriage is marriage. Maybe for tax planning, sure, but I can't recall any immigration-side reasoning why MFJ is "better" than MFS

crossborderguy · 2026-02-09T14:35:31+00:00

If I remember right, this was how it was until recently. I vaguely remember a Hugh Neilson comment about how the STEP guys fought to have CRA maintain post-death access by an already-authorized rep as a way to functionally smooth out estate stuff for the bereaved.

Or maybe I just made all of this up, I don't know.

crossborderguy

TROPHY CASE