r/cantax

Hard to find anything online about this, so here it goes, I'm trying to figure out the tax implications to the buyer and seller in a scenario where:

1. Seller of CCPC corporation sold their common shares to step kids for 1M, the step kids are taking over the business
2. From the 1M, 0.7M is in promissory notes with remainder in cash
3. LCGE of 1M claimed by seller for the share sale
4. 5 years later, the 0.7M promissory notes are gifted back to the same corporation that issued the preferred shares

How would the 0.7M gifted notes be treated from a tax perspective by the original seller and the corporation that receives them in 5 years?

Edit: changed preferred shares to promissory notes

In 2023 I worked for two companies, both companies sent me my T4 forms and I filed my 2023 tax return on the basis of these T4 forms.

In 2025 I received a notification saying that I am getting a notice of reassessment. Apparently what happened was that one of my employers (75% of my income for the year) never filed my T4 form to the CRA, so the CRA moved my employment income to ‘other income’ and taxed me again on the already taxed income. So because of this they reduced my Tax deducted & EI contributions (Meaning they want me to pay the tax twice).

My employer in 2024/Early 2025 dissolved the company & moved to a new country.

The CRA rejected my objection to the reassessment due to being ‘unable to verify the T4 from the employer’ (Who obviously has a new number/Address etc…).

A colleague of mine who worked at the same time as me told me that the same issue happened to him and was rectified by the CRA after he explained the same as above.

Would anyone here know what I can do next to try and help resolve the situation considering that the bill is still gaining interest?

I am trying to file my wifes and my taxes for last year. We were married may 18 2024. She has 2 children from a previous relationship and her ex has married as well. This is my first time trying to file our taxes together by myself as last year we paid someone to do it because I wasn’t sure how dependents and what not worked.

So last year he claimed their son and we claimed the daughter and told them last year that we will claim the son and they can claim the daughter this year. Well when I messaged them this evening on the app we use for communication to make sure we know what child they claimed we received this response.

“You may wish to confirm whether you are eligible to claim a child as an eligible dependant, as generally a spouse is claimed once you have been married/common-law for the full tax year.”

Our reply was

“Well in this case we will rely on the tax professionals that we will be paying to file our taxes as to whether or not a dependent may be added rather than a third party interpretation regarding the status of our filing.”

The reason we gave this reply is it is the same thing they once said to us about something else but just changed it to reference taxes.

Can someone shed some light on if they are correct or should I abandon trying to do my taxes myself and just pay someone to do them. I honestly am tempted to file them myself anyways and don’t care if I get audited if I am incorrect in my filing as my part of the taxes are a simple t4 from work with no deductions and my wife probably made less than $10,000 from the dog walking/pet care that she does.

I appreciate any insight someone can shed upon this.

Hi, my accountant wants to file and charge me for a non-resident return for each year that I was out of Canada.

I left in 2018, so I need to file a late departure return. Then I was away from 2019 - 2025. I am returning in 2026.

My accountant wants to file additional NR returns for each of those years, which is pretty expensive .......and I really don't have anything to declare because I was abroad making money abroad with no ties to Canada.

Could you help me understand why they are trying to do this?

I had an amended T4 pop up on my account that neither CRA or my employers accountant can explain. The accountant amended it so it reflects what was originally on the T4 back in January, but it still has the incorrect version on my CRA account.

Is this a typical lag, when can I expect to see the corrected version? I'm a little anxious about being re-assessed because the incorrect version is off by thousands of dollars.

It's for tax year 2024. Any insight appreciated!

I’m doing a side part time job which is like 500 a month. I’m planning on leaving it in a few months probably. The employer had given me the option of being an employee or independent contractor. I chose employee but now I’m regretting it cuz I feel like it’s gonna create me tax problems later. I already have a side job as an independent contractor as well. Would it be wierd if I was employee for like 3 months and made like 2000 dollars instead of just being an independent contractor.

Bit of a long one, sorry. crossed the $30k threshold in 2023, registered, and basically did it wrong four different ways. all of these are things my accountant rolled her eyes at, none of them were obvious to me at the time.
first one. the $30k is a rolling 4 quarter calculation, not a calendar year.

I thought once jan 1 hit i was safe for another year. nope. you exceed it the moment any 4 consecutive quarters add up to $30k+.

I hit it mid Q2 and had 29 days from that exact date to register. i registered like 3 months late and got a letter about it.

Second one, and this one cost me real money. the supply that pushes you over the threshold is itself subject to HST even if you weren’t registered yet. so the invoice that took me over $30k, i had to go back to that client and ask them to pay HST on it after the fact.

They were fine about it (they were registered too so it was just a wash for them) but if it had been an individual client i’d have eaten it.
third. i picked annual filing because i thought it meant less work. it does mean less work but it also means one giant remittance once a year and you can’t claim ITCs until you file. switched to quarterly after year one. cash flow is way better and you get your input credits back faster.

Fourth, ITCs on stuff you owned before you registered. you can claim ITCs on inventory and capital property you had on hand the day you became a registrant, including the hst on your laptop, software subs etc. there’s a specific election for this on your first return. i missed something like $800 in credits my first year because i didn’t know.

The CRA guide is RC4022 if you want the actual rules. it’s brutally written but it’s all in there.

Anyone else have one to add to the list? feels like the registration process is one of those things where everyone learns it the hard way and then never talks about it.

Any advice on this appreciated.

I'm an American (sorry!) but wife is Canadian (yay!). Her 24 yo son has dual citizenship. Two years ago I opened a brokerage account on his US Social Security number and he filed US taxes in 2024 and 2025. Those had his only income -- capital gains from equities sold from his US account. My wife's corporate tax person said he has to claim those capital gains as income on his Canadian taxes.

This doesn't seem right to me. He's claiming them as income on his US taxes and it has nothing to do with Canada. The gains were in USD and put in his US credit union account. No money ever touched Canada.

Is this right?

Thanks :-)

CRA asked me to resubmit T4s for a matching review.
I submitted them about 10 days late.
CRA mentioned a possible $2100 penalty and said reassessment may take 9–10 weeks.
Should I pay now or wait until reassessment is completed?

For most of my life I have been single (M47) and filing my taxes was easy peasy. 2 years ago I got married and my now wife started a sole proprietor business for dog walking.

I need to file my taxes but can’t seem to be able to because of her and I don’t know where to start anymore. Is there a way I can just file my taxes?

Hey guys I’m going my taxes by myself on TurboTax after getting an extension.
I found out that we get taxed for not hanging health insurance (I am 21) so I got taxed $950 throughout the year ($70 something per month) for not having health insurance, I found out my mom had me on medical & it expired in March of 2026. Can I get the $950 refunded for unknowingly having medical? Or is that separate from having one you pay for?

What should I do if my inactive corporation with no assets and no income which I want to dissolve owes a penalty of $1000 to CRA? Do I have to pay $1000 to CRA from my personal account?

Hi, We applied for the DTC for our child and it was denied on January 26. We contacted the medical professional to ask if they would provide a letter outlining exact issues and examples, along with this we wrote a short note requesting a redetermination.

After submitting the documents we had a reference number starting with Cxx. About 6 weeks later the tracker was updated to say that the documents were not related to the DTC application and now the tracker is showing a GB reference number as an income tax objection.

Has anyone else had this happen?

I will be calling CRA to try and find out what's happened, thought I would ask here if anyone experienced this.

I'm currently trying to do my self employment taxes on Wealthsimple and I found it to be a lot different than my usual T4 submissions. I misread the deadline for "filing taxes" for self-employments as 15 June 2026 also for tax paying date. I'm late and I'm freaking out a bit.

My self-employment is just stock trading and I don't know if "expert" 30 minutes advice that Wealthsimple is offering for $90 is going to do the trick. I just looked at the CRA's Business and Professional Income, and it looks very complex way beyond what I think I can handle.

I have sent consultation requests out to top search result businesses, but has anyone tried to do their self-employment trading taxes before and can offer some advice?

Hey everyone,

I dont know much about taxes and tax planning. I tried doing my own research, but I was hoping to get some insight from people who are knowledgeable about this stuff. I’m looking for some tax planning info about a cryptocurrency asset I hold long-term in cold storage.

So based on institutional utility and the shift in regulations, I have a strong belief in this specific digital asset and it's the potential for extreme, massive generational appreciation (think Bitcoin level). I am keeping the asset name anonymous to avoid debates; I just want to get insight into the Ontario/CRA tax mechanics for structuring and handeling this growth.

My ultimate goal is to hold this asset inside a corporation to protect it, use it to get institutional yield, and eventually transfer the passive yield through a Family Trust in order to take advantge of benefits which a Trust offers.

My issue is with the timing of when to incorporate and transfer the tokens, and I see two paths:

• Path A (Incorporate Now): Set up a standard Ontario HoldCorp right now while the asset's price is very low. Transfer the tokens into the corporate wallet immediately. (But anything can happen and I would be wasting money setting up and maitaining the Corp)
• Path B (Wait and do a Section 85 Rollover): Wait until the asset actually hits a major milestone price (proving the thesis), then hire a tax lawyer to execute a Section 85 Rollover to defer the personal capital gains tax upon transfer. (I heard that doing a Section 85 Rollover after price appreciation limits the advanteges of a Corp?)

My specific questions are:

• Which path to take?
• With either path that I choose, can I still successfully set up a Family Trust later on to reduce taxes and get all the structural advantages that come with a trust?
• Are there any specific CRA anti-avoidance traps I need to be aware of if a regular Ontario corporation is used strictly to buy, hold, and eventually earn institutional yield on digital assets?

Just a reminder: Nothing in crypto is certain. This entire plan is based strictly on my personal opinion and thesis for this specific token. (most people in the crypto space belives that their token is the next Bitcoin, lol). The token of that I am betting on could completely flop and I am completely comfortable with that, as I am working within the framework of my financial situation. I just want to get the tax information on these two structural paths.

Appreciate any insight!

Thank you!

Hi All,

I have an entity account with IBKR for my small business, and my fiscal year end date is Apr. 30 every year. I have definitely disposed some stocked between Jan. 01 and Apr. 30 2026, and I would expect that I need to include them (gain, losses) in my fy2025 tax reporting. However, I don't find T5008 for these trades in IBKR. Anyone know when IBKR will have them? If IBKR doesn't generate them till early 2027, am I expected to file them in fy2025 tax returns?

Please no judgement - i know this was stupid and i’m trying to correct it.

I will be asking my accountant this after the long weekend. I have a corporation. There were a few years where i took money from the corporate account that was not reported on the personal side as t4 or t5.

It was recorded on the corporation as income/profit, corporate tax was paid on it however no personal tax. Technically that money should still be in the corporate account however it is not.

Is this something i could use the vdp for? If so am i correct in assuming i need to submit vdp for both the corporate (to issue backdated t5) and personal (to pay personal tax on the t5 income).

The last accountant I had who prepared 2012 said of me that I don't like paperwork. SO true that I haven't gone for the returns I expect to get since then. I'm closing in on my second bankruptcy (first was 1998) so even if I owe it'll just be rolled into the one I'll never live down. Maybe the refunds will save me for awhile if I'm lucky. I do understand that I can receive returns for only the past 7 years and am still on the hook for all the preceding years if I'm owing.

Back then I started as an IT contractor working for my agency as an employee. Generally I would work for the client for a couple years then need to take three months off work/contract so the client wouldn't have to upgrade me to full-time working for them. I figure that I was being taxed at a yearly rate which often was not a full year of pay. This is why I hope I have money coming back because many years were not full work. I was on EI for the breaks which was taxed at the benefit rate.

I own a duplex and was renting the second unit up until 2023 while living in the primary unit, so there's rental income to consider. Maybe that takes up all the refunds who knows.

Despising paperwork as much as I do, you could guess I kept no records of the ins and outs of income and expenses and you'd be right, other than a few sporadic batches of banking records. I have logged into my CRA account and there are T-4Es back to 2019 so there are about 7 years of tax records I have no details on yet.

How do I obtain my missing T4s? Do I complete returns with only the meagre info I have? Do I involve a CPA to assist? Do I jump off a bridge?

My taxes haven't been filed in years, not since I had a regular job at Wal-Mart. Since then Ive worked at my mothers shop. First at a fleamarket selling items and now we sell as a storefront. When we opened the storefront we registered the company with me as sole propriator. The business license is still under my mothers name. I dont control any of the finances or recieve a regular income, if I need money for something I need to ask my mother. For the last few years I havent even had my own bank account. What are my options to getting my taxes done? My mother has assured me for years she would do them for me like she used to but its become clear to me I should have found a way to sort this out myself some time ago.