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AltaRed

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Everything posted by AltaRed

  1. You may have indicated how much to use in the data entry section of the 'net capital losses of other years' rather than leaving the data entry box blank and letting the software decide. The amount you can use is at the bottom of Schedule 3 of your return.
  2. You start with ticking off the right boxes in the Interview process, and then the right lines will show up in the UFile window on the left. With interview based software packages like Ufile or TurboTax, you must carefully check off the right boxes in the interview process... Otherwise you don't find them.
  3. Examination fees required to obtain/keep professional licenses should be reported on Schedule 11, in essence a tuition tax credit. Such fees must be at least $100 do be covered.
  4. You don't pay any capital gains taxes on principal residences, so there are no tax deductions for principal residences. Nor is rent tax deductible either. Exceptions are for portions of property used for self-employment such as home based businesses.
  5. Property taxes, including school taxes, are not legitimate deductions on a principal residence. Only an expense item on an investment property.
  6. It has to show up on your spouse's return. If you are designating yourself as 'head of household' and have filled in relevant spousal data on the next tab, UFile should automatically populate your spouse's return for his/her 50% share of investment income.
  7. Don't use T5008 data if you are going to use brokerage ACB and Proceeds data from Capital Gains (Loss) Reports (different brokerages name these reports slightly differently). The official T5008 from your broker cannot have the Cost Basis, aka Acquisition Cost, aka Book Value box filled in because technically your broker cannot be sure of your Cost Basis : 1) especially if you transferred the asset in from another brokerage and they can't verify what your Cost Basis is, 2) you may have the same stock in another brokerage account unknown to them and you have to aggregate your holdings to get to the correct Cost Basis, 3) if you journalled a stock between USD and CAD sides of your brokerage account....it is a guarantee you brokerage will NOT have used the correct forex rate when journalling between CAD and USD sides of the account. Additionally most brokerages, but potentially not all, brokerages have corrected Cost Basis for phantom re-invested capital distributions that ETFs sometimes distribute in late December each year. Such distributions increase your cost base so if you miss that, you simply end up with a larger cap gain (smaller loss) than you might have had otherwise. CRA doesn't care if you pay too much. Most brokerages make the correct Cost Basis adjustments (Box 42 tax slip data) downward to handle Return of Capital (ROC) data. The brokerage Capital Gains (Loss) report is an information document and thus they do include Cost Basis in order for them to advise you what they think your capital gains or loss actually is. It is for you to verify from your own Adjusted Cost Basis records. I am not aware of any tool or report that aggregates multiple sales of each holding, but if you have been updating your Cost Basis throughout the year as you make the trades you would already know that information. Hint: Some people use https://www.adjustedcostbase.ca/ to keep track of Cost Basis. The blog on that site has great information on Cost Basis as well.
  8. Is the family head trying to claim the spousal deduction? He shouldn't be. Separated spouses should have essentially independent tax returns, with the only shared financials potentially being investment income or Schedule 3 dispositions for the period pre-separation in JTWROS accounts. Both of those categories (investment income and Schedule 3 can be allocated in Ufile. If that doesn't work either, then don't use the '% and transfer to spouse' options for investment income and capital dispositions. Ignore sharing and simply divide the tax slips up prior to data entry and only enter the relevant data for each spouse.
  9. If you can Netfile his 2018 tax return, then just do it. Did it for my mother 3 years ago for her 2014 tax return (died in April 2015). CRA does not care for a tax year in which the person was alive for the full year. The bigger complication is if a Balance is due. Either the executor pays it out of one's own pocket and gets reimbursed later from the Estate, or try to get the Estate bank account to pay Balance owing (the former is much easier). If there is a refund, then when it comes in, just have the cheque deposited to the Estate back account.
  10. You may need to ask a tax accountant how to deal with this. The issue here is that as of Dec 31, 2018 you were married in the eyes of CRA and have to record it that way on your tax return. It doesn't matter yet to CRA what happened after Dec 31st....that is an issue for the 2019 tax year. IF I was to make an assumption on my own, without expert advice, I would simply fill out the tax return as a Single person, not head of household, and mail it hard copy to CRA with a cover letter saying just what you said here., i.e. the bum came to live here and walked out on me, and left me with no information of any kind. From a financial (tax) perspective, this should be acceptable to CRA if you are not claiming things like family tax credits, GST/HST tax credits, aggregating charitable donations and medical expenses, etc. IOW, as long as you are not trying to claim any tax credits by having a spouse, you are erring on the side of paying more tax than you might otherwise. Edit: Others may have a different opinion, but perhaps ask a tax accountant friend in an accounting firm.
  11. If, in the Interview Setup, you check marked "Capital gains (or losses) and capital gain history", you will see "Capital gains (or losses) and ABIL" in the left column and when you click on that, it brings up the "Capital Gains and ABIL" box...and one of the selections is "Real estate, depreciable property and other properties". Click on the + sign and you will get a sheet with a lot of data entry lines. The assessed value of 2010 goes in the 'adjusted cost base of the property' data entry box. The proceeds of disposition box and expenses incurred in making the disposition are self-explanatory.
  12. Ufile populates Schedule 3 automatically as you enter your T5008 data. - Yes, total shares sold in 2018 (and only those sold in 2018) - I don't use adjustedcostbase.ca so can't help you, but it should be intuitively obvious.... Cost or Book Value is the same as 'Adjusted Cost Base" - Disposition is the total dollars you received (not including commission). Commission goes on the Expense Outlay.. Or if your T5008 includes commission cost already in the sales proceeds, leave Outlays blank.
  13. It means you already have the sheet for that open. Look just below the 'Capital Gains (or Losses), CarryForwards line. I was able to duplicate that 'error' that way.
  14. My assumption is due to claw back of tax credits, e.g. a kind of reverse incremental tax. For instance, for seniors, there is the age credit which is clawed back with increasing income (which if you fall in that realm is a reverse incremental tax). Same with OAS starting with about $77k of income. I never look at MTRs simply because of the amount of 'claw back' but for some folk, it seems to be a big deal. I would rather have so much income and be clawed back on social benefits than not to have enough income to have that "problem".
  15. Separate lines for each asset
  16. Except Antoine did not explain how to translate USD to CAD for the purpose of Schedule 3. Different forex values apply. One at the time of acquisition and one at the time of disposition. CRA is clear on the need to use forex of the day for acquisitions and dispositions.
  17. You translate the information to CAD and report it on Schedule 3 as a capital disposition. Normally, investors would have Canadian brokerage accounts and get a T5008 instead. Remember that Cost Basis must be converted into CAD based on the forex of the day the stock was acquired, e.g. 2010. Gross Proceeds must also be converted to CAD based on the forex of the day the stock was sold. I don't know on which line where you can claim the 'federal tax withheld' but you may not get all that much back from CRA in a Foreign Tax Credit. As far as I know, the tax treaty only allows for certain percentages. I'd have to dig into old files to see how it was handled for me many years ago. A good reason not to use a US brokerage.
  18. You have an acquisition cost based on the Fair Market Value of the property on the day it ceased to be a principal residence. You did get a formal appraisal or at least 1-2 market assessments from a realtor at the time it changed to an investment property, did you not? Property tax assessments are typically not acceptable since they can be quite wrong.
  19. AltaRed

    Donation

    Don't select a specified amount. If you do, the amount above what you specify will be carried forward (and all of it will be if you don't have a number in that box). Just let the software optimize between you and spouse.
  20. Costs specifically associated with the selling of the property must be deducted from net proceeds of the sale of the property, not operating expenses. In other words, you can't take the deductions against fully taxed rental income, only against 50% taxed capital gains.
  21. When you did the data entry for that specific tax slip, did you indicate this was a joint account and were sharing X% of the slip with your spouse? The individual who actually owns the holdings should be reporting the investment income on that person's own tax return (called attribution of income by CRA).
  22. A new form must be used each year. Amended return means a change to an already filed existing year's tax return
  23. No. You call roll all the trades for one specific stock into one Schedule 3 entry through proper data aggregation. You have to use another entry for a different stock. A tool that is used extensively by many investors to keep track of ACB is https://www.adjustedcostbase.ca/ It is the 'go to' place to keep track of all your holdings
  24. Since it is a capital gain/loss situation, the way to access it is through the interview tab, then select "Interview setup" on the left side, and then put a check mark in the "Capital Gains (or losses) and capital gains history" box. That will give you access to form you need to fill in the data.
  25. The T5008 and AutoFill should NEVER have anything in the Cost Base. The brokerage cannot be sure of your own personal ACB, e.g. you could have the same stock in 2 brokerage accounts which must be aggregated for ACB. Further, for those that transfer assets between the CAD and USD sides of their brokerage accounts, the brokerages never get the right forex, i.e. they use forex on date of journalling between the acounts when they should actually be using the forex in place on the date of settlement of the purchase. There are fundamental flaws both in AutoFill and brokerage data. In the past, I also found flaws regarding currency on tax slips and T5008 data. The taxpayer must ensure they are using the right currency. I have also seen the same flaw regarding RPP (registered pension plans) and unregistered pension plans, etc, etc. AutoFill is not ready for prime time. I do NOT use AutoFill at all.
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