Whittle Away Debt Lootcamp
 
 
 

Accounting & Tax Expert — Jeanne Krahn-Matthewson

 
 

Answers from Jeanne Krahn-Matthewson

Apr 23, 2012

Q:

We are going to get a gift ($40K-$45K Cdn) from my parents who live outside of Canada to put towards our mortgage. Just to confirm - we won't pay any taxes or need to declare this gift since it is not part of our income? If so, what are the documents or gift declaration papers we will need to present if asked by Revenue Canada in the future? asked by V., Montreal, QC

A:
Under Canadian tax law, gifts are not taxable. For the discussion of gifts, please see this past question. read more »
 
 

Mar 24, 2012

Q:

I have saved a modest amount in my RRSP and am receiving a monthly pension from my job. How can I get money out of my RRSP without have to pay so much in taxes? Would you suggest little amounts each year or bite the bullet and take it out in larger amounts? asked by Heather, retired, Dartmouth, NS

A:
I would suggest withdrawing little amounts from your RRSP over time (vs. large amounts less often) so as to not push your taxable income into a higher tax bracket. read more »
 
 

Mar 13, 2012

Q:

I'm currently preparing to become a day trader and have heard that it would be a good idea for tax purposes for me to incorporate. Can you advise if this makes sense? asked by Anonymous, Mont Tremblant, QC

A:
Whether to incorporate or not depends on your personal circumstances. read more »
 
 

Mar 12, 2012

Q:

In my RRSP portfolio, I have a number of investments that pay eligible dividends that remain in the portfolio as cash. Would withdrawing the cash qualify for the federal dividend tax credit or is the money treated differently because of being held in an RRSP? asked by Anonymous, Winnipeg, MB

A:
All money withdrawn from an RRSP is taxed as regular income. The dividend tax credit and capital gains treatment are lost as the investments are held in a registered retirement plan. read more »
 
 

Jan 28, 2012

Q:

I plan to move to Germany in the spring to work for my Toronto-based company's German subsidiary in Frankfurt. I plan to live, work and study there for 2-4 years and then come back to Canada. What should I do with my RRSP, TSFA and savings investments while in Germany, to minimize double taxation on interest gains? asked by T., European Sales Manager, Toronto, ON

A:
For Canadian tax purposes, you are deemed to dispose of almost all of your property at its fair market value on the day that you emigrate from Canada. This will include all non-registered investments that you have. You are not, however, deemed to dispose of your registered investments (RRSPs and TFSAs). read more »
 
 

Jan 13, 2012

Q:

My husband and I are Canadians, looking to purchase a rental property in Florida. What are the tax implications when buying foreign property? asked by Anonymous, researcher, Stratford, ON

A:
The tax implications of a Canadian resident purchasing a rental property in the United States are as follows... read more »
 
 

Nov 27, 2011

Q:

I recently got married and am wondering about filing taxes this year. My husband is a student and received funding while completing his PhD thesis; this funding is tax free. Should we be filing our taxes together and should I be claiming him as a dependant? We're both in the dark as far as new rules for completing taxes now that we're married. asked by Anonymous, administration, Lethbridge, AB

A:
As soon as you are legally married, you must tick the marital status box on page one of your personal tax return as ‘married’. For maximum tax efficiency, you should file your taxes together. For 2011, if your spouse’s net income is under $10,527, you are able to claim him / her as a dependant. Your claim is reduced by the amount of your spouse’s net income. Either spouse may claim medical expenses, public transit amount, children’s fitness amount and charitable donations paid in the year. The spouse with the higher income will usually claim the donations, transit passes and children’s fitness amount while the spouse with the lower income (if taxable) will claim the medical expenses. Child care expenses must be claimed by the spouse with the lower income (except in certain circumstances). read more »
 
 

Nov 27, 2011

Q:

My parents want to sell a property and send me the money from the sale. Will I have to pay taxes to the Canadian government for the money that was earned by my parents outside Canada on the sale of this property? asked by M., Montreal, QC

A:
Under Canadian tax law, gifts are not taxable. read more »
 
 

Nov 27, 2011

Q:

If I have paid taxes through payroll tax deductions throughout the year, will I owe any taxes when it is time to file my yearly income tax return? I do not have any deductions or any other income. asked by L.V., admin, Calgary, AB

A:
If the correct amount of taxes are withheld at source (per the payroll tax tables available on the Canada Revenue Website) and you have no other income or deductions, you should not owe any additional taxes. read more »
 
 

Nov 21, 2011

Q:

With the economic downturn, my husband of 31 years has taken a job 1,550 km away from our main residence. We have decided to purchase a home in the area. How will this affect us tax-wise? asked by Anonymous, grant writer, Mackenzie, BC

A:
On the initial move to the new location, your husband is able to deduct expenses paid for moving himself, members of his household, and household effects to the new location. These include meals and lodging while en route. These expenses may be deducted only to the extent of income earned at the new location. Any unused amounts may be carried forward and deducted only against income earned in the new location in the following years. read more »
 
 

Nov 14, 2011

Q:

I owned a waterfront lot in my hometown of Manitoba which I bought for $9,000 in 1981. I recently sold the lot for $139,000. What kind of capital gains tax can I expect and is there any way of decreasing them? asked by Sharon, executive assistant, Lake Country, BC

A:
Capital gains or losses result from the disposition of property. A capital gain or capital loss is the difference between (1) the amount received as proceeds of disposition of the property in question, and (2) the property's “adjusted cost base” plus any costs of disposing of the property. The adjusted cost base is the cost of the property which includes all costs associated with the acquisition - such as brokerage fees, real estate fees and legal fees. read more »
 
 

Nov 13, 2011

Q:

I’m a contract worker from the Philippines, supporting 6 kids back home. I am not married and my common-law partner who lives back home is unemployed. For the 3 years that I’ve been in Canada, I have been told that I cannot claim support for my 6 children, even though my common-law partner is unemployed, because they are in the Philippines... asked by Mom of 6, cook, Edmonton, AB

A:
Subject to certain conditions, you may claim the personal amount for your spouse or common-law partner regardless of whether that person is a resident of Canada. Similarly, you may claim the eligible dependent or personal amount for an infirm child or grandchild (dependent on you by reason of physical or mental infirmity) of yourself or your spouse or common-law partner, whether or not that child or grandchild is a resident of Canada. read more »
 
 

Nov 9, 2011

Q:

How much should I charge for mileage/km if I use my SUV for business operations? Does the size of the vehicle matter? asked by Anonymous, courier driver contractor, Vermilion, AB

A:
For 2010, CRA considers the following to be a reasonable rate for business use of a vehicle: $0.52 per business-use kilometre for the first 5,000 kilometres driven in a year and $0.46 per kilometre thereafter. read more »
 
 
 
 
 
Ask The Question
 
 
Loading
 
 
 

Sponsored Link

The girlfriend’s guide to finance

It’s Your Money, Honey

From the founders of Golden Girl Finance:

It’s Your Money, Honey

A girl’s guide to SAVING, INVESTING,
and building WEALTH
at every age and life stage

Buy Now

 
 
 
 
 

Our Experts

 
Rhonda Sherwood

Rhonda Sherwood

Wealth Building Expert

Wealth Advisor, ScotiaMcleod, CFP, FMA

Questions answered: 11

 
Trish Petersen

Trish Petersen

Relationship with Money Expert

Founder and Certified Money Coach, TrishPetersen.com, MSc, CPCC

Questions answered: 2

 
Lynne Triffon

Lynne Triffon

Retirement & Estate Planning Expert

Financial Planner & Vice President, T.E. Wealth, CFP, R.F.P.

Questions answered: 8