Under the C-8 Act, the Government has implemented a 1% annual tax on the fair market value of “underused residential property” owned by non-resident, non-Canadians. For instance, a home bought for $1,700,000 in 2018 with a current fair market value of $2,000,000 will incur a $20,000 tax.
Category: Tax Tips
Canada Sales Taxes: GST, PST, RST, and HST
Canadian governments (Federal, Provincial, and Municipal) charge you taxes for different reasons. Some of the most well-known taxes are the following: I explain Sales Tax in this article. When you purchase a good or service you need to pay an extra percentage on top of the original price to the merchant or service provider. The merchant in…
Canada’s First Home Savings Account (FHSA): A Tax-Free Way to Save for Your First Home
Canada’s tax-free First Home Savings Account (FHSA) is a tax-exempt savings account designed for residents to save for purchasing a home. Similar to RRSP and TFSA, the FHSA is a registered savings account that can hold a variety of investment securities, including equity investments like stocks, fixed-income investments (bonds and GICs), as well as other…
Read More “Canada’s First Home Savings Account (FHSA): A Tax-Free Way to Save for Your First Home” »
Filing a Dissolution Notice for Canadian Businesses: What You Need to Know
Canadian businesses are required to submit a dissolution notice upon closure. Sole proprietorships and partnerships submit a form titled “Dissolution or Change of Proprietorship (or Partnership)” to the provincial Corporate Registry office, while corporations submit an “Application for (Voluntary) Dissolution” to the same office. Additionally, corporations must provide a copy of their corporate articles of…
Read More “Filing a Dissolution Notice for Canadian Businesses: What You Need to Know” »
How to Prepare a T5 Slip
A T5 slip reports dividends paid by a Canadian corporation to its shareholder(s). In order to prepare a T5 slip, you must follow steps below. What is a T5 Slip? A T5 slip reports dividends paid by a Canadian corporation to its shareholder(s). Preparing a T5 Slip In order to prepare a T5 slip, you…
LLCs for Canadians is a good idea?
A limited liability company (“LLC”) is a common type of entity used by U.S. persons investing in or operating a business in Canada. While it may not be optimal many Canadians use LLC’s to invest in or operate a business in the United States. LLC’s can be created in a number of States and may…
Working Remotely Could Impact Your Taxes
When COVID-19 struck, many employers quickly switched to a work-from-home model for their employees. Many of them began working in a province other than where their office was located. While some workers have returned to their offices, as the pandemic drags on, more offices continue to work remotely with no back-to-office dates in sight. If…
What Is a T4A Canadian Tax Form?
T4A, we are talking about T4A Statement of Pension, Retirement, Annuity, and Other Income, not T4A(P) – Statement of Canada Pension Plan Benefits,or T4A(OAS) – Statement of Old Age Security or T4A-RCA Statement of Distributions from a Retirement Compensation Arrangement. A T4A slip is a Canada Revenue Agency (CRA) form that summarizes all compensation your…
It is time to say goodbye – The End of Free Google Business emails
No sure if you received an email from Google, regarding Google Suite Legacy Free plan will be end at July 1, 2022. It is sad, but it is time to say goodbye. But the next question is whats your choice? upgrade to paid plan, the cost would be $7.80 CAD/month/user. This cost could be huge…
Read More “It is time to say goodbye – The End of Free Google Business emails” »
A Quick Guide to Bookkeeping For Cryptocurrency
Cryptocurrencies and other digital assets are increasingly attracting attention and interest from consumers, businesses, and governments. However, the financial reporting of these assets does not fully comply with existing accounting standards. More and more consumers are increasing the proportion of cryptocurrencies in their personal portfolios, more and more payment solution providers are also offering cryptocurrency…
Read More “A Quick Guide to Bookkeeping For Cryptocurrency” »