Under the Canadian income tax system, you liability for income tax is based on your status as a resident or non-resident of Canada for income tax purpose.
How a non-resident is taxed differently than a resident of Canada?
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Author: Simon Zhong
Accounting equation with examples
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In a double-entry system, for every debit entry there must be a credit entry and vice versa. This leads us to the basic accounting equation: Assets = Liabilities + Owners’ Equity The above equation shows how assets are financed: either by borrowing money from someone (liabilities) or by paying your own money (owner’s equity).
What is a section 217 election?
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You have left Canada and you are happy to be considered a non-resident of Canada for tax purpose. However, you may be still paying taxes if you earn income from Canada. Canadian payers are required to withhold non-resident tax on certain types of income they pay to non-residents, including pension income. Depending on the treaty…
How to deal with your Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) balance when you emigrate?
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You might withdraw funds under the Home Buyers’ Plan (HBP) to buy or build a home or withdraw funds under Lifelong Learning Plan (LLP) to attend university or college. When you emigrate from Canada and become a non-resident, you have to repay the balance of the funds you withdrew.
Residential ties
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The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.
Emigrant for income tax purpose
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You are an emigrant for income tax purposes if you leave Canada to settle in another country and you server your residential ties with Canada.
What are outlays and expenses used in calculating capital gain and loss
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Outlays and expenses are amounts that you incurred to sell a capital property. You can deduct outlays and expenses from your proceeds of disposition when calculating your capital gain and capital loss. You cannot reduce your other income by claiming a deduction for these outlays and expenses.
Capital loss
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You have a capital loss when you sell, or are considered to have sold, a capital property for less than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property.
Capital gain
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You have a capital gain when you sell, or are considered to have sold, a capital property for more than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property.
How does a property qualify to be your principle residence?
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A property must meet all of the following four conditions to qualify as your principal residence for any year: it is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit…