AltaRed

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  1. Do not use CRA Auto-fill if you are going to input data via tax slips. The right hand and left hand don't know they are different and they will duplicate. I tried CRA auto-fill in 2016 tax return and had the same issue. I deleted all the CRA Auto-fill materials and used tax slips instead. CRA auto-fill can be a real issue because first of all, there is no Cost Data (ACBs) for anything one puts on Schedule 3, and that has to be input manually.
  2. There will be two tabs under one file. You can toggle back and forth between the two. Once both are complete, each must be Netfiled separately.
  3. AltaRed

    Changelog

    I add my name to the absolute need for a change log. It is incomprehensible an update would not be issued without advising what the changes are and whether those of us who have already filed need to be concerned. That is a Best Practice in the software industry.
  4. 1. Brokers do not (should not) be providing the Cost Base since you could have the security in more than one non-registered account and thus the Cost Base has to be aggregated across those Accounts. You have to input your own Cost Basis in Box 20 from your own records and the Proceeds of Disposition in Box 21. The software automatically calculates Cap Gains/Losses then ends up on Schedule 3. 2. I always use a separate line simply because it is easier to let the software do the math rather then me using a calculator. 3. The software automatically calculates the inclusion rate (50%) on Schedule 3 and transposes the result on Line 127 of the T1.
  5. AltaRed

    T1135 Currency conversion

    There are different conversion rates used for different things. There is the annual forex rate for 'recurring income', i.e. foreign income on tax slips like T3 and T5, but entirely different forex rates for cap gains/loss transactions on Schedule 3 (these are based on date of settlement of the acquisition and date of settlement of the disposition), as well as different forex rates for different data boxes on the T1135. For example, on T1135, in filling out Category 7, to find the 'Maximum Market Value' during the year, you have to look at the month end value of your USD domiciled securities for each month of the calendar year and apply the monthly forex rate used by Bank of Canada, not annual rate. And then for the Market Value for end of year, you have to apply the Bank of Canada December forex rate. You could have 3 different forex rates used in Category 7 on the T1135.
  6. AltaRed

    NR4

    If the bank has your non-Canadian address, and it seems they do because you received an NR4 tax slip, there is no additional reporting needed to CRA. The bank will have already withheld the amount of 'withholding tax' due....if any. If you are located in the USA, there is no withholding tax on bank interest. Of course, you must still report the interest income elsewhere, e.g. the country in which you are resident.
  7. AltaRed

    USD savings account capital gains

    Section 5 of Schedule 3... Bonds, promissory notes and similar. This was also asked in a 2014 question.
  8. AltaRed

    No Schedule 3 in Spouses Return

    Note that your share is only 50% if you contributed only 50% of the funds for the investments that produced that income. It is tax evasion to automatically assign 50/50 distribution if that is not how the investment was funded by each taxpayer.
  9. AltaRed

    JOINT account % share

    CAUTION: You cannot just arbitrarily split joint income 50/50. CRA has attribution rules about who has to claim income from investments made. If one taxpayer contributed 70% of the funds to an asset/security/bank account, then that taxpayer must show 70% on the form for that taxpayer's share of income earned from the investment. It is tax evasion under the Income Tax Act to arbitrarily assign 50/50 distribution. It is incumbent on the taxpayers to keep paper records of who contributes what to joint investment accounts to be able to divide income, capital gains, etc. on the same proportionate basis.
  10. AltaRed

    Foreign Tax Credit claim

    See my reply to the same/similar question you asked. Foreign non-business income and foreign non-business tax paid are specified on T3 and T5 tax slips. This data, if entered correctly via Interview Setup, automatically gets transferred to the Foreign Tax Credit forms.
  11. AltaRed

    Foreign Tax Credit form on UFile

    Uflle fills in the T2209 (and appropriate provincial form) automatically from data you previously entered from T3 or T5 tax slips. When you went through the Interview Setup, you would have selected T3 and/or T5 forms to fill out for each tax slip you received. On a T3 tax slip, there is box 25 for Foreign non-business income, and a box 34 for foreign taxes paid. If you fill out the T3 form correctly, Ufile automatically carries this information over to T2209. Similarly for T5 tax slip, the corresponding boxes are 15 and 16 respectively. Again Ufile carries this over to the T2209, etc. I am not sure why you are trying to fill out the forms manually?
  12. AltaRed

    T1135 form cost values

    CAUTION: It depends on what question Peter H is asking. Antoine's answer is only applicable to knowing whether the $100k CAD equivalent was in place at any time during the year to see if the T1135 is even necessary to file. The 'year end cost value' could be the same (if no US securities were sold) or it could be less if a security was sold.
  13. AltaRed

    T1135 Currency conversion

    You convert to CAD equivalent using the average annual forex rate of 1.2986 (for 2017) with a calculator or pen and paper.
  14. A few sharp users of Ufile 2017 have found the software (UFile for Windows) has an error in Page 1 of T2209 diagnostics that could result in too much of a FTC being granted from US sourced income. Column C sometimes shows numbers that reflect Column A rather than calculating the allowable Can-US tax treaty rates of Note 2. In other words, Column C data points cannot exceed the numbers of 10% or 15% as applicable in the tax treaty. If too much withholding tax was actually withheld (Column B), then Column C data is supposed to restrict the amount of the data point of Column B that could be claimed as a credit against Canadian taxes in Column E. Fortunately, in my case, foreign withholding taxes meet the tax treaty guidelines so that I am not overclaiming tax credits. This may not be the case For some taxpayers. Be aware! Added later: Column C calculation seems to be the correct tax treaty number with inputs from T5 tax slips (e.g. foreign non-business income earned as dividends), but is incorrect with inputs from T3 tax slips (as foreign non-business income)
  15. Uflie needs to post a summary of what changes when they release software updates. For those of us who have already completed tax returns, and then we get notification to install a software update, it leaves us wondering whether that update affects any of the data calculations, and if so, whether a T1-ADJ may need to be filed. UFlile just released a Windows version update but is silent on just what that update contained. Such lack of transparency is NOT appreciated.