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There are some frequently questions you might have in your mind. If you have any other questions, please contact me directly or send me an email. Contact Us page.
portion of my truck if used for work?
- You were normally required to work away from your employer’s place of business or in different places.
- Under your contract of employment, you had to pay your own motor vehicle expenses
- You did not receive a non-taxable allowance for motor vehicle expenses.
And your employer has to complete and sign CRA Form 2200 (declaration of Employment, and the employer has to answer “yes” to questions 1 &2). The types of expenses you can deduct include:
- Maintenance and repairs
- License and registration fees
- Capital cost allowance
- Interest you paid on a loan used to buy the car
- Eligible leasing costs.
Since you use your car for both employment and personal use, you can deduct only the percentage of expenses related to earning income. To support the amount you can deduct, keep a record of both the total kilometers you drove and the kilometers you drove to earn employment income. Please note that the CRA consider driving back and forth between home and work as personal use.
Roth IRA is non-taxable in Canada. According to the Canada – U.S. Tax Treaty, Roth IRA will lose its “pension” status should a Canadian resident make any contributions to it; the only exception to this rule is if the payment is a rollover contribution from another Roth IRA. If any other contributions are made, the resulting growth from the time of the contributions will be subject to Canadian income tax in the year of accrual.
When the property is sold the U.S. will attribute 50 per cent of the gain to the husband and 50 per cent of the gain to the wife (US does not have spousal attribution rules). For Canadian purposes, the results may be quite different. CRA could argue that since the wife has contributed 100 per cent of the funds to purchase the property she should be taxed on 100 per cent of the gain. If this is the result, the U.S. tax paid by the wife, if any, could be forever lost for Canadian tax purposes.
1. Tax was withhold from winning from blackjack, baccarat, craps, roulette or big-6 wheel;
2. You also had US gambling losses. Under Canada-USA Tax treaty , losses incurred on wagering transactions of Canadian residents, the gains of which would be subject to the 30% withholding tax, shall be deductible to the same extent that losses would be deductible if they were incurred by a U.S. resident. So it means the gambling losses can be used to offset some or all of the gambling winnings for the same year, but you have to keep a good record for your gambling losses.
A US C-Corp- there are good side and bad side to the C-corp. Good side is the estate taxes as the corporation never dies if the owner dies. Bad side: if you sell the property and your property appreciated in value then the capital gain will be taxed at 35% tax rate for a corporation; while as an individuals the tax rates that apply to net capital gains will usually depend on the individuals tax bracket (for 2014 up to $36,900 of gain for a single taxpayer is exempt). Although the maximum net capital gain tax rate rose from 15 to 20 percent in 2013, a zero or 15 percent rate continues to apply to most taxpayers.
I cannot cover all issues here if you need more info please contact me.
Elections or additional forms (IRS Form 3115) may need to be filed with your 2014 tax return. These form and elections are MANDATORY in 2014 and going forward.
Because you owned a rental property prior to 2014 and claimed current and previous years repairs and depreciation. It tells me that you need to review all previous years depreciation and repair/maintenance expenses and may need to make adjustments under the new regulations. Please contact my office for further assistant. 2015/02/10
Update:2015/02/13-This afternoon, the IRS released new rules related to filing Form 3115. Although I am still analyzing the full extent of this IRS release, it appears that the intent of the IRS pronouncement is to provide relief to small taxpayers from the burden of filing the 3115.
There are two ways to take distributions from 401K (if your plan allows you, please contact the financial institution to find out):
- a loan; or
- a hardship distribution.
1. If your plan allows you to take a loan, then you can take a loan to avoid any taxes or penalties; You can take a loan amount equal to the lesser of half your account value, or $50,000; the loan repayment period is 5 years and you have to pay it back monthly.
2. If your plan allows you for hardship distributions, then you have to pay tax plus a 10% penalty (if you are under 59.5 years of age).
My first suggestion would be that you take a loan from your 401(k), because it is a non-taxable event.
The least favorable suggestion is taking a distribution under the IRS’s hardship rules, if your plan allows it. This distribution would be fully taxable and there is a penalty of 10%.
- Cost of traveling by airplane, train, bus or car from a home to a business destination.
- The cost of lodging
- Half the cost of meals
While the cost of airfare to travel for business does qualify as a tax deduction, the IRS does not allow business travelers to take a deduction if they use frequent flier miles or similar program to travel. So there is no tax deductible expense when using frequent flier miles. Since tickets purchased with frequent flier miles are not tax deductible, you should paid for your tickets and save frequent flier miles for personal travel.