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Tax questions or accountant in Alberta

Tax questions or accountant in Alberta

Old Aug 17th 2016, 9:14 pm
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Default Tax questions or accountant in Alberta

Does anyone know one in Alberta Canada?

I recently got a notice from CRA that they want me to verify my foreign tax credit.

I sold my house and flat back in Lancashire so had a capital gain amount on my return, but don't have to pay capital gain in Canada.

So even if I show them my tax records from the UK it's not going to match up.

Not sure if I should just throw them all my rental statements, bank statements etc or if I should show them the math?

anyone know anything or know a good accountant (I'm in Red Deer)
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Old Aug 17th 2016, 11:26 pm
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Default Re: Tax questions or accountant in Alberta

You could try asking on the Red Deer Expats facebook page?
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Old Aug 18th 2016, 4:43 am
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Default Re: Tax questions or accountant in Alberta

Originally Posted by Fred Louise
Does anyone know one in Alberta Canada?

I recently got a notice from CRA that they want me to verify my foreign tax credit.

I sold my house and flat back in Lancashire so had a capital gain amount on my return, but don't have to pay capital gain in Canada.

So even if I show them my tax records from the UK it's not going to match up.

Not sure if I should just throw them all my rental statements, bank statements etc or if I should show them the math?

anyone know anything or know a good accountant (I'm in Red Deer)
Who told you you don't have to pay CGT in Canada? Why won't your paperwork match up? Somehow it will need to to successfully gain a credit.
Books have to balance!

Your tax records from the UK are all you can show if you are claiming a credit for foreign tax paid. Rental statements etc have nothing to do with CGT, they are income and expenses, related to income. Whatever you claim, you must be able to support it with documentation, the 'math' alone won't do it unless you have documents to support it.
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Old Aug 18th 2016, 5:02 am
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Default Re: Tax questions or accountant in Alberta

Most people in UK do not have any CGT to pay on sale of principal residence. so tax records will not show anything. If you have to substantiate the gain the only way I can see is to submit your solicitors statement of account showing how much you sold the property for and if you have it, the same statement for when you bought the property, thus showing the gain.
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Old Aug 18th 2016, 6:08 am
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Default Re: Tax questions or accountant in Alberta

OP can you explain a little more?

We sold our UK house mid 2015 and as non residents we didn't have to pay UK CGT as most non residents aren't liable if they sell before Oct 2016. But we did have to pay Canadian CGT on this sale. We got UK tax advice and used an accountant for the Canadian return.

Last edited by Snowy560; Aug 18th 2016 at 6:13 am.
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Old Aug 18th 2016, 4:05 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by quiltman
Most people in UK do not have any CGT to pay on sale of principal residence. so tax records will not show anything. If you have to substantiate the gain the only way I can see is to submit your solicitors statement of account showing how much you sold the property for and if you have it, the same statement for when you bought the property, thus showing the gain.
If the OP owned the property prior to moving to Canada then this is not relevant. CGT liability in Canada will be based on the fair market value when they moved here.
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Old Aug 18th 2016, 4:08 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by JonboyE
If the OP owned the property prior to moving to Canada then this is not relevant. CGT liability in Canada will be based on the fair market value when they moved here.

This was our situation. We wanted to do it exactly right even though it was expensive (not so much because we saw an accountant and had to pay for that, but because the Canadian CGT payment was quite a lot).

S
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Old Aug 18th 2016, 10:55 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by Aviator
Who told you you don't have to pay CGT in Canada? Why won't your paperwork match up? Somehow it will need to to successfully gain a credit.
Books have to balance!

Your tax records from the UK are all you can show if you are claiming a credit for foreign tax paid. Rental statements etc have nothing to do with CGT, they are income and expenses, related to income. Whatever you claim, you must be able to support it with documentation, the 'math' alone won't do it unless you have documents to support it.
No CGT because between my arrival date and selling date, the CGT for Canadian purposes is almost negligible.

However overseas return shows a big fat CGT balance and tax payment.

So for eg. I paid 30K GBP tax in the UK, but only claimed a FTC of 4K CAD.

Regarding the documentation that is what I am confused about. I can't show my tax assessment only, but if I show eg. my rental statements (which represented the income which I had paid tax on, and am now claiming FTC for) that doesn't fly.

Does this make sense?
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Old Aug 18th 2016, 10:55 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by Piff Poff
You could try asking on the Red Deer Expats facebook page?
I don't have a Facebook account believe it or not I guess I should get with the times and will ask my son to help me look into it.

Thanks for the suggestion.
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Old Aug 18th 2016, 10:56 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by quiltman
Most people in UK do not have any CGT to pay on sale of principal residence. so tax records will not show anything. If you have to substantiate the gain the only way I can see is to submit your solicitors statement of account showing how much you sold the property for and if you have it, the same statement for when you bought the property, thus showing the gain.
It was on an investment. Will a solicitors statement suffice? This is what I am confused about - what evidence satisfies the CRA?

Do I show them my calculations on a worksheet or is it not even worth all the work?
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Old Aug 18th 2016, 10:57 pm
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Default Re: Tax questions or accountant in Alberta

Hi, Can you explain the reason you have to pay CGT on your house sale in the UK? Only because I am curious.

S
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Old Aug 18th 2016, 10:57 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by Snowy560
OP can you explain a little more?

We sold our UK house mid 2015 and as non residents we didn't have to pay UK CGT as most non residents aren't liable if they sell before Oct 2016. But we did have to pay Canadian CGT on this sale. We got UK tax advice and used an accountant for the Canadian return.
Is your accountant any good? Can they help someone in another province?

I'm getting quite stressed by this and don't know what to do.

The CGT was not off my principle but a small flat we had sold before moving here.
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Old Aug 18th 2016, 10:58 pm
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Default Re: Tax questions or accountant in Alberta

Originally Posted by JonboyE
If the OP owned the property prior to moving to Canada then this is not relevant. CGT liability in Canada will be based on the fair market value when they moved here.
Yes this is how my calculation was done.
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Old Aug 18th 2016, 10:59 pm
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Default Re: Tax questions or accountant in Alberta

I think I am running out of time, can I ask the CRA for an extension?
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Old Aug 18th 2016, 11:04 pm
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Default Re: Tax questions or accountant in Alberta

JonBoy would be better placed to suggest whether you need a province specific accountant or not.
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