You must file a business tax return with your personal tax return by June 15th. However any amount owing must be paid by April 30th to avoid interest. You should also register for GST if your sales are over $30,000.

A corporation can choose its first year-end, which must be within 53 weeks from the date of incorporation. You must file your corporate tax returns within six months after year end. Any tax owing must be paid within two months after the year-end. Small Business Corporation must pay tax owing within three months after the year-end.

The salary must be paid for bona-fide services performed. The normal payroll deductions procedure must be followed unless your spouse directly own more than 40% of the business.

Incorporations give protection against personal assets by limiting liability. Usually financial institutions require a personal guarantee from the shareholder(s) of a small businesses. Limited liability doesn't extend to GST and payroll remittances. Directors may be liable for withholding taxes.

Incorporating your business gives shareholders more options for income distribution. The income tax rate for small business corporations is lower than the individual shareholders. If your corporation is CCPC (Canadian Controlled Private Corporation), it will be eligible for small business deduction.

Incorporation usually costs $700 to $1000 and you get the following: Drafting a article of incorporation Name search Corporate seal Tax advice regarding incorporation and etc

No, the funeral expenses are considered personal expenses.

CPP death benefits are taxable. The recipient or estate has to declare CPP death benefit on the tax return. If the recipient is in a higher tax bracket it may be beneficial to file T3 trust return and $2,500 can not be declared on the mother's tax return.

CPP death benefits are received only if the deceased contributed to Canada Pension Plan (CPP). CPP death benefits are fully taxable. Employer death benefits are also taxable but the first $10,000 of death benefits received from employer is tax-free. Life insurance is tax free as long as the premiums were paid out after the tax dollars.

You can directly transfer the value of his RRSP to your RRSP or RRIF plan, If you are the beneficiary of RRSP. This option is available if you are spouse of the deceased.

Income earned after death is taxed in trust until it is distributed to beneficiaries. Income from trust can be distributed to beneficiaries of the estate and taxed in their hands. Beneficiaries can choose to pay taxes in the trust or on their personal tax returns on investment income.

You should have an updated will and appoint a guardian for your daughter's custody upon your death. You may choose to set up a trust where your daughter is the beneficiary. The trust may hold assets which will be distributed to your daughter when she reaches a legal age. You should consult professional advice regarding your will and trust arrangements.

In most cases, it is advisable not to cash your RRSPs when leaving Canada. If you collapse your RRSPs while resident in Canada you will be taxed at your marginal rate for that year. The rate could be as high as 50%. If you wait until you move, lump sum withdraws will be taxed at 25%. If you leave the money in RRSPs until you convert it to a RRIF or an annuity than the Canadian rate drops to 15%.

If you are moving temporary and you do not break your residential ties, you will have to file a Canadian tax return. You will have to report your worldwide income. If you are making a permanent move and still have residential ties with Canada, then you will have to file as a part year resident in the year you move. In subsequent years, you will not have to file a Canadian return unless you have Canadian-source income.

Since you are Canadian resident, you are required to report worldwide income. You are required to report your Canadian and U.S. income on your Canadian taxes. You are also required to file U.S. tax returns. To prevent double taxation, you get a foreign tax credit on your Canadian taxes for the taxes paid in the United States. Since Canadian taxes are higher than U.S. you will have to pay the tax difference on your U.S. source income. You can continue to be a Canadian citizen, you only have to pay Canadian taxes if you are a resident or deemed resident of Canada.

Under the Canada-U.S. tax treaty, CPP and OAS benefits paid to a resident of the U.S. are not subject to Canadian tax. You will have to report them on your U.S. 1040 return and depending on your total income you may have to pay U.S. tax on them. You are not subject to Canadian tax if you are not resident of Canada. You may have to pay withholding tax if you have investment in Canada.