Curmudgeon
-
Posts
374 -
Joined
-
Last visited
-
Days Won
16
Posts posted by Curmudgeon
-
-
Interest that is payed out is taxed when received. If the interest is accruing and not paid out until maturity, the interest is earned for tax purposes for each 12-month period the bond is owned. If the bond was purchased in the bond market, you paid price plus accrued interest to compensate the seller for the interest accrued since the last payment date. This accrued interest becomes part of the bond's ACB and is deducted from the interest received next year, i.e., it is not considered interest for tax purposes.
-
The selection is based on minimizing family taxes. Because of the OAS and other clawbacks, this can result in the lower income spouse transferring pension to the higher income. Strange but true.
-
The reinvested dividends go into the ACB. For example, initial investment of 500 units @ $10/unit = $5,000. Later invest $150 dividends when fund at $15 for 10 additional units. Total investment now $5,150 and hold 510 units. The ACB/unit = 5,150/510 = $10.10/unit. Redeem at $16, capital gain/unit = $16 - $10.10 = $5.90. The initial investment and the dividend are subtracted out in the calculation. Only the gain on them taxed.
-
You are being taxed on the capital gain the dividend investment produced, along with the gains achieved by other investments into the fund, not on the dividend itself. The initial investment in the fund itself came from after tax earning. It's not where the investmet funds come from, it's the gains they produce.
-
Do a search for t2125 This issue has arisen many times before.
-
If the remove is still unavailable, then what I said two years ago still stands.
-
CPP contributions are on earnings greater than $3,500 (basic personal exemption) so there should not be anything in 16. She didn't make any registered pension plan contributions (different from CPP) and therefore blank. Putting 0.0 in 16 and others blank doesn't work?
-
On the top menu bar use delete dependent. A separate return (his return) is needed for him. I don't think it's possible to carry his dependent information to a new return.
-
On the Ufile T4A form, go down to Other Information and search the box for 119.
-
Ufile will claim donations only to the extent they are needed to reduce taxes payable to zero. The unused amount will be carried forward to next year's return to reduce taxes. This could be happening to you.
-
I don't know if it was a gain or a loss. Your calculations will tell you that. Although keep in mind that if you invested in years in addition to 2017, that will count in ACB.
-
Quote
You have to first claim your current year’s federal tuition fees and any unused tuition, education, and textbook amounts carried forward from previous years on your Income Tax and Benefit Return, even if someone else paid your fees. The amount you must use on your own tax return is equal to the amount of credit required to reduce the taxes you owe.
-
Read this
The No income box is at the top of Specific situations in Interview Setup.
-
You can efile/netfile for only the past 5 years (2017 - 21). Earlier ones have to be paper filed.
-
It doesn't have to be signed when net filing, only when paper filing.
-
- Click on Interview setup
- Go down to Investment income and expenses
- Click the blue arrow by Foreign income or foreign property
- Presumably this is Foreign professional income.
- The Net foreign business income in the professional income form would be after office expenses.
-
- Click Interview setup
- Go to Employment and other benefits
- Click the blue arrow by Employment income and employment insurance benefits
- Under Other you'll see what you want.
-
Since the vehicle is for 100% personal use, no part of it can be claimed for business expenses. Can't charge CCA on the leased vehicle because it isn't owned. The lease payments are charged.
-
In the pdf printing options, look for Federal tax return only. Those are the pages that have to be submitted.
-
First note the total tax paid by you and your spouse. The in your spouse's return, go down to the bottom of the menu to Controls. Set the Transfer of taxable dividends to Claim own amount. Now see what the combined tax payable is. Use the approach that leads to the lowest overall tax.
-
Refiling can be done through My Account if you have access to her account or by CRA Refile which is near the top of the UFile index.
-
Whoops, it's taken off income on line 23500 in the calculation of net income and then added back on line 42200 to net to zero so yes, it would show up in A's return (and mine) as part of taxes paid.
-
I know from my own return that UFile doesn't do any OAS tax transferring with 100% clawback. Also, the clawback is entered on line 42200, recovery of social benefits, not as tax paid. Why don't you run the returns without pension splitting to see if anything odd happens. Open T4A and pension income in the index and set splitting to no split.
-
The CRA will only accept netfiled returns for the past 4 years so 2018 - 2021. Need to paper file.
Bond interests
in Reporting income
Posted
That is correct.
Say the interest payment is $12 and the bond was purchased @ $800 two months after the semi-annual interest period began (four months before your first interest receipt). Two-sixths of the $12 is added to the purchase price so the cost to you is $804, which is the ACB. The $4 is the interest that has accrued since the last payment. When the $12 payment is received, only 12 - 4 = $8 is declared as interest.
If the bond had accrued interest, the same calculation applies. All interest accrued on the bond up to the trade date in incorporated into the price and the buyer subtracts it when declaring accrued interest.