Tax questions or accountant in Alberta
#1
Forum Regular
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Joined: Aug 2016
Posts: 45
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)
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)
#2
Re: Tax questions or accountant in Alberta
You could try asking on the Red Deer Expats facebook page?
#3
Joined: Sep 2008
Posts: 12,830
Re: 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)
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)
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.
#4
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Joined: Dec 2013
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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.
#5
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.
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.
#6
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
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.
#7
Re: Tax questions or accountant in Alberta
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
#8
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Thread Starter
Joined: Aug 2016
Posts: 45
Re: Tax questions or accountant in Alberta
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.
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.
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?
#10
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Thread Starter
Joined: Aug 2016
Posts: 45
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.
Do I show them my calculations on a worksheet or is it not even worth all the work?
#11
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
S
#12
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Joined: Aug 2016
Posts: 45
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.
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.
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.
#14
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Joined: Aug 2016
Posts: 45
Re: Tax questions or accountant in Alberta
I think I am running out of time, can I ask the CRA for an extension?
#15
Re: Tax questions or accountant in Alberta
JonBoy would be better placed to suggest whether you need a province specific accountant or not.