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clw

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Everything posted by clw

  1. Zina, have a look at Curmudgeon’s April 21st message. You cannot Netfile a deceased person’s return, only e-file works if you are a tax preparer.
  2. If your former Ontario residence was designated as your principal residence, since the date that you acquired it, then no capital gains would have appeared on your 2019 return, so there are no taxation issues and therefore no need for amendment. It would be wise to inform the CRA, of your new principal residence in Newfoundland. You can simply write a letter indicating the date of change of address and snail mail it to the CRA or better still, upload the document to your CRA My Account workspace.
  3. You can send documents through your CRA MyAccount workspace.
  4. There is a difference between reporting foreign income in Ufile and use of the T1135 form. This form is used to report investments in foreign countries that exceed 100,000 CAD$. The form is not part of the income tax return, it has no tax consequences unless you fail to file it. It is simply a ‘wealth tracking mechanism’. Foreign income is entered through the foreign income dialogue in the Interview section.
  5. If he paid income tax in Argentina, that usually results in an equivalent tax credit in Canada, to avoid double taxation. I am not familiar with the Argentina /Canada tax treaty, but I imagine any deductions for earned foreign business income declared in Canada, would depend on Canadian legislation.
  6. clw

    Income Splitting

    Happy you figured it out. With Ufile, the Interview section controls was shows up on the return; choices you make there will determine the final appearance of the return. Sometimes lines are missing in the return, because we didn’t throw the right switches in the Interview section.
  7. clw

    Income Splitting

    You can disable pension transfer in the Interview dialogue form Pensions, form T1032. Are you entering your UK pension through the ‘Foreign revenue’ dialogue in the Interview?
  8. There is also a ‘split pension report’ visible on the left side panel in the ‘Return’ menu near the end. The report tabulates split vs non-split returns.
  9. @Carolyn V, It is the 'Personal Use' form.
  10. clw

    T1135 amend

    You might ask the CRA if the T1135's are amendable without incurring a late filing penalty, but I would just correct the 2020 version, nothing more.
  11. clw

    T5008 with a capital loss

    The T5008 slips you downloaded will automatically populate Schedule 3, and calculate gain or loss. Make sure box 20, the ACB is not ‘0’. If you have a previous year capital loss, you must indicate in the Interview section that you wish to apply it to this years gains.
  12. Since 2016, the CRA requires you to declare and designate any principal residence sale on form T2091 (and TP274 if you live in Quebec). If this is the only property you own, only three numbers are required: date of acquisition, date of sale and proceeds of disposition, and no capital gains will be reported on your income tax return. If you own multiple personal use properties, you can designate one of them per year as a principal residence; the T2091 form will then apply the following fiscal rule: (years of designation + 1)/(years of ownership) = exempted capital gains, and you will be taxed on the difference between total selling price and the exempted CG. Form T2091 is accessed through the Interview, Capital Gains, Personal Use dialogue. Then click on designation.
  13. Do you mean that box 21 of the T3 slip is reporting the same information as the T5008 slips? That is unusual.
  14. If you examine your MyAccount workspace on the CRA website, you will discover that there are T5008 slips for every sold transaction in 2020. If you auto fill your return, the slips will automatically populate Schedule 3, and you will have nothing more to do. But do check that box 20 has an ACB value for each transaction.
  15. If it was declared as a rental property since 2016, you need to declare it as a final rental in 2020 on the T776. Then you should obtain an appraisal for Fair Market Value, since you are changing its use. You will need the FMV as of 2020, when you sell it in the future as you principle residence.
  16. clw

    T1135 amend

    The T1135 is not part of a tax file, even though it is Netfiled after it. It is a ‘wealth tracking tool’ which has no tax consequences, unless you fail to file the form on time. The important thing is to file the form, even if not completely accurate. Just file the T1135 form 2020 correctly and all should be well. Trying to ‘amend’ it might raise more issues.
  17. From the Interview section ‘CRA questions’, you answer ‘Yes’ to ‘did you sell a principal residence in 2020’ and click on ‘designation’. This will open the capital gains forms menu, scroll down to ‘personal use’ and click on (+). You are now in the section which will generate the T2091 and TP-274 (Québec) forms. Give the property a name and complete dates (2007 to 2020), price sold, and other requested info ACB (FMV+costs to maintain). As you enter property information, keep an eye on the ‘messages’ window below for errors or warnings. Under ‘designation’ from 2007 to 2017. The next line will ask you for change of use under articles 284 - 286 this is probably ‘No’, but study this line carefully.. When the return is generated, inspect forms T2091 TP274 to make sure they are filled correctly. You will need a realistic FMV number, before you started renting. Ask around for comparable properties. Don’t forget to complete schedule 3 for the rental portion of the condo. This is not your case, but note that when years of designation = years of ownership, only three numbers are required: dates of acquisition and disposition and proceeds of disposition. The T forms are practically empty, and no capital gains appear anywhere in the return. This is normal! Good luck.
  18. If you designate the condo as a principal residence from 2007 to 2017, the exempted capital gains = number of years designated as principal residence plus 1 divided by the years of ownership. So (11+1)/14 =12/14 of the capital gains are exempted from tax. If you complete the T2091 /TP274 correctly, you should arrive at those numbers. Hopefully you filed a change of use form for the condo for 2018 to 2020.
  19. It is always better to use the T5008, as these are the slips that are shown on the CRA My Account. If you pre-fill, they will be downloaded. Make sure that box 20 (ACB) is not empty. Manually add the aCB from your records, if needed.
  20. This has been an ongoing problem since the inception of auto fill. My approach has been to download the CRA slips, and add the RQ information manually.
  21. Yes. Also you can select any 12 month period, as long as it ends in the taxation year. It does not apply to your case as you arrived in 2019, but you could have claimed expenses from say Feb 2018 to Jan 2019, March 2018 to Feb 2019, April 2018 to March 2019 and so forth.
  22. Yes, you include it in your medical expenses.
  23. You control this in the Interview through form T1032, selectable from the Pension Income section. By default ‘Ufile decides’; just select ‘No’ to prevent pension splitting.
  24. In the Interview, you can select the T5008 forms under ‘Capital Gains’, and complete them.They will then correctly populate the Capital Gains (formerly Schedule 3, but now part of the main return), calculating the gain or loss. The amounts in boxes 20 and 21 multiplied by the number of units yields the gain or loss, and Ufile automatically calculates this.
  25. There is no automatic transfer between the CRA and any private income tax software company due to privacy laws. Until you Netflle the 2019 return, the CRA cannot know what you will be reporting. Follow 2) and you should be ok. Since you have already requested an adjustment, and know the correct values for 2018, you can change these, so that the 2018 return is accurate, but do not Netfile or refile the 2018 Return, as the CRA already has your T1ADJ request.
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