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- Posted It will depend on which box this income was reported in.... on Troubleshooting. October 30, 2019 3:30 PM
- Posted To calculate the ACB you will need to treat each subseque... on Investors and rental owners. October 30, 2019 2:20 PM
- Posted Since you did not file the 45(2) election, the cost of th... on Investors and rental owners. October 30, 2019 2:20 PM
- Posted You may be eligible to deduct some of these costs, subjec... on Self-employed. October 30, 2019 1:45 PM
- Posted Generally speaking, inventory is held as an asset until y... on Self-employed. October 30, 2019 4:56 AM
- Posted Generally, if you are not sharing in the risk of the farm... on Investors and rental owners. October 30, 2019 4:54 AM
- Posted You should enter the total cost for the year. TurboTax wi... on Self-employed. October 30, 2019 4:53 AM
- Posted Provided that your fair market valuation was done by a re... on Investors and rental owners. October 30, 2019 4:53 AM
- Posted Transactions should be reported in the year they occur. Y... on Investors and rental owners. October 30, 2019 4:50 AM
October 30, 2019
3:30 PM
It will depend on which box this income was reported in. If this is from a limited partnership or 'other income' it will not be classified as self-employed income.
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October 30, 2019
2:20 PM
To calculate the ACB you will need to treat each subsequent purchase (reinvestment of dividends) as if you had bought the unit(s) normally. This is with the assumption that you declared the dividends as income in the year that you received them.
For instance:
You initially bought 1000 shares of Company A for $10,000. Your ACB is $10/share to start.
You then received dividends of $400 and you reported these on your income tax return for that tax year.
The reinvestment plan purchased 30 shares for you with the $400 at a cost of $13.333 per share.
You now own 1030 (1000+30) shares. And your total cost for tax purposes is $10,400 (10,000+400).
Your ACB after this round of dividends is $10,400/1030 = 10.097 per share.
You will need to do this calculation for each share purchase via the DRIP - and any sales along the way - always in chronological order. And this will need to be done individually for each different company you own. I normally set up a spreadsheet for these so that I only need to enter the amounts reported and the spreadsheet will do the rest for me.
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October 30, 2019
2:20 PM
Since you did not file the 45(2) election, the cost of the property for tax purposes (ACB) will be the fair market value of the property at the time you converted it to a rental in 2013.
If your 2013 fair market value was $100,000, and you sold it in 2017 for $130,000 then your gross capital gain would be $30,000. (This example does not include any other costs or adjustments that may have been incurred between 2013 and 2017 which would have affected your actual ACB.)
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October 30, 2019
1:45 PM
You may be eligible to deduct some of these costs, subject to certain restrictions. One thing to keep in-mind is the timing of the expenses and to determine which year of tax return they should apply to. You can find more information on what is claimable and when on the CRA site here:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...
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October 30, 2019
4:56 AM
Generally speaking, inventory is held as an asset until you sell it. When you sell the unit(s) they are then transferred to your expenses. They are normally expensed under the category Cost of Goods Sold (COGS).
Example: You buy 100 units of Widgets for a total of $100. These would be held as inventory at $100 with a cost of $1 each on your balance sheet.
Then, say you sell all these 100 widgets for $2 each. You will record a sale (income) of $200 and an expense of $100 for the cost of the widgets. (For simplicity, this transaction does not include sales tax). This will net you a profit of $100 - which is the difference between the gross sale income and the cost of the inventory which you have just expensed.
Hope this is helpful.
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October 30, 2019
4:54 AM
Generally, if you are not sharing in the risk of the farming operations your income cannot be treated as farming income. Since you are not active in farming the land you should treat this income as rental income.
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October 30, 2019
4:53 AM
You should enter the total cost for the year. TurboTax will calculate the allowable percentage if you have entered the business vs total KM's driven for the year.
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October 30, 2019
4:53 AM
Provided that your fair market valuation was done by a reputable arm's-length party for the date that the property changed status from Primary Residence you can use that valuation as the basis for an adjusted cost base for the sale.
In that circumstance, your capital gains(loss) should be: (2016 Sales price - 325,000 ) * 50%
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October 30, 2019
4:50 AM
Transactions should be reported in the year they occur. You would then carry these amounts forward to subsequent years to use then as needed.
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