2021 was my first year in Canada.
In December 2021 I sold some stock to make sizeable capital gains (= my annual income).
Do I need to prepay estimated tax on this before April on this? My normal salary has tax withholdings, but it won't cover the tax on these capital gains.
My understanding is that typically the answer is yes, but someone told me that in the first year you don't have to pay until April.
I would rather not pay interest or penalties.
Thanks in advance!
prepaying estimated tax on capital gains in the first year in Canada
Moderator: Mark T Serbinski CA CPA
Re: prepaying estimated tax on capital gains in the first year in Canada
To answer your question, if your first year (and sometimes even second), you will not be 'forced' to pay quarterly installments on your tax, and no interest or penalties would apply . The CRA will let you know if you must do so next year.
But just so you know, the cap gains you may owe to canada is calculated with cost basis determined on the day your arrive in canada (not its original purchase price).
But just so you know, the cap gains you may owe to canada is calculated with cost basis determined on the day your arrive in canada (not its original purchase price).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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Re: prepaying estimated tax on capital gains in the first year in Canada
Hello, pokka! As far as I know, all taxes will be calculated automatically in the first year.
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Re: prepaying estimated tax on capital gains in the first year in Canada
The first year in Canada gives you the tax vacation with the possibility of not paying the total taxes to the CRA, and if they need any additional information, they will let you know with a phone call or via texting you. Don't worry about this. Generally, I used the https://www.paystubcreator.net/ online calculation service to create the paystubs for all my incomes in the first year.
Re: prepaying estimated tax on capital gains in the first year in Canada
Thanks nelsona, much appreciated!
And possibly thanks to suspiciously-coherent but seemingly-a-bot BeverlyWhite!
And possibly thanks to suspiciously-coherent but seemingly-a-bot BeverlyWhite!
Re: prepaying estimated tax on capital gains in the first year in Canada
Yeah, you can ignore those from the spammer
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing