Tax filing season is almost here, but chances are you are not looking forward to this tedious and time-consuming task. Many taxpayers put off filing until the last minute. But if you have been procrastinating, it may be time to change your ways. There are some great reasons to put this annual task behind you, […]
The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP).
Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18{9de21fd12e8ca6488972186bbb5fe81becd95b7b490974f1f8badcf668439b39} of 2017 earned income to a maximum of $26,230. Earned income is […]
Dear Uncle Bean:
For many, many years, my husband and I owned a small candle store in down town Calgary. We used a corporation for the business. Due to the economic downturn, we ended up having to close the shop when the lease ran out. To be honest, we are happier now without the burden of […]
No matter how much you love your work, the fact is that one day, you will retire. Whatever the reason, you will eventually choose to hang up the work gloves and start devoting your hours enjoying the fruits of your labor. However, chances are that your retirement plan won’t actually work out. Here are 5 […]
To combat unreported foreign income, the Federal Government introduced the concept that Canada Revenue Agency (CRA) will pay financial rewards to individuals who provide information on major international tax evasion. CRA could pay up to 15{9de21fd12e8ca6488972186bbb5fe81becd95b7b490974f1f8badcf668439b39} of federal tax collected if the reassessments are in excess of $100,000. Penalties, interest and provincial taxes will be […]
In a recent Tax Alert titled “Abuse of Source Deductions and GST/HST Amounts Held in Trust” CRA warned that businesses must hold source deductions and GST/HST amounts in trust for the government. Penalties and interest and possibly personal liability for the directors will be the result if this is not done.
Federal legislation allows CRA to […]
CRA recently noted that where a proprietor purchased a Disability Income Policy, the premium is a non-deductible personal expense. But the receipt of the disability benefits is tax-free.
If a corporation acquires a Policy for the employees, the premiums are generally deductible. If the employee receives the disability benefits they are included in the employee’s income. […]
Dear Uncle Bean,
About two years ago, my husband of 28 years suddenly passed away. Since then, I’ve been having problems managing a lot of things that my husband used to do. Unfortunately, filing my taxes is one of those items.
What should I do?
Worried
Dear Worried:
We are sorry to hear about your loss. It is a very […]
The most common post-secondary non-refundable tax credits that apply to students are interest paid on student loans, the tuition, education and textbook amounts (prior to 2017), the public transit amount (prior to July 1, 2017), and the Canada employment amount.
Interest on Student Loans
To be eligible for the credit, interest must, in fact, have been paid. The […]
The most common deductions that apply to students are moving expenses and child care expenses.
Moving Expenses
You can deduct moving expenses if you move to attend courses as a full-time student or if you moved to start a new job, including summer employment, or to start a business. Your new home must be at least 40 […]
