Comments for Canadian Tax Accounting Blog http://madanca.com/blog Chartered Accountant & Tax Accounting Specialist in Toronto / Mississauga Ontario Area Mon, 19 Jul 2010 01:12:30 -0400 http://wordpress.org/?v=2.8.6 hourly 1 Comment on Tax Return Preparation in Mississauga by Allan Madan http://madanca.com/blog-199#comment-122 Allan Madan Mon, 19 Jul 2010 01:12:30 +0000 http://madanca.com/tax-return-preparation-in-mississauga#comment-122 The Canadian Income Tax Act is the legislation that governs federal tax law for all Canadians, regardless of the province. While most provinces have harmonized their tax legislation with that of the federal government, some of the tax laws vary by province. The Canadian Income Tax Act is the legislation that governs federal tax law for all Canadians, regardless of the province. While most provinces have harmonized their tax legislation with that of the federal government, some of the tax laws vary by province.

]]> Comment on Late, Past Due Tax Returns by Allan Madan http://madanca.com/blog-206#comment-121 Allan Madan Mon, 19 Jul 2010 01:04:25 +0000 http://madanca.com/late-past-due-tax-returns#comment-121 Hi Olga, Yes, you can reduce interest and penalties on past due returns through the voluntary disclosure program (VDP), which is part of the CRA. As a Chartered Accountant in Mississauga, I have filed past due tax returns with the VDP and have successfully waived interest and penalties for clients. Hi Olga,

Yes, you can reduce interest and penalties on past due returns through the voluntary disclosure program (VDP), which is part of the CRA. As a Chartered Accountant in Mississauga, I have filed past due tax returns with the VDP and have successfully waived interest and penalties for clients.

]]> Comment on Late, Past Due Tax Returns by Olga http://madanca.com/blog-206#comment-95 Olga Mon, 10 May 2010 20:00:48 +0000 http://madanca.com/late-past-due-tax-returns#comment-95 Are you able to reduce penalties and interest from past due returns? Are you able to reduce penalties and interest from past due returns?

]]> Comment on Tax Return Preparation in Mississauga by Tax Questions http://madanca.com/blog-199#comment-69 Tax Questions Wed, 21 Apr 2010 18:15:32 +0000 http://madanca.com/tax-return-preparation-in-mississauga#comment-69 A quick question for Allan - do the same rules apply in all the provinces of Canada? A quick question for Allan – do the same rules apply in all the provinces of Canada?

]]> Comment on How can I reduce my taxes in Canada? by Gordon Unger http://madanca.com/blog-190#comment-64 Gordon Unger Fri, 09 Apr 2010 17:35:17 +0000 http://madanca.com/how-can-i-reduce-my-income-taxes-in-canada#comment-64 Can you further explain how the spousal loan works? I am the higher income earner but howe does providing a loan to my spouse reduce my taxes? Can you further explain how the spousal loan works? I am the higher income earner but howe does providing a loan to my spouse reduce my taxes?

]]> Comment on Tax Return Preparation Tips by Oakville Accountant by cna training http://madanca.com/blog-185#comment-62 cna training Tue, 06 Apr 2010 11:18:45 +0000 http://madanca.com/tax-return-preparation-oakville#comment-62 nice post. thanks. nice post. thanks.

]]> Comment on Greetings and Salutations from Allan Madan! by admin http://madanca.com/archives/archives/47/cpage/1#comment-21 admin Mon, 15 Feb 2010 20:00:41 +0000 http://madanca.com/blog/madanca-greetings#comment-21 Thank you Michael for your question. As an Accountant in Toronto, I can tell you that the gain on your 2 condos will likely be considered to be a capital gain. Only 50% of a capital gain is taxable. Therefore, if your gain on the sale of the condos, after subtracting legal fees and commissions, was $100,000, then the taxable portion would be $50,000. Even though you are using the proceeds from the sale of the condos to purchase a home in which you will live, the gains on the condos will still be taxable. (I have assumed that you did not live in any of those 2 condos, and that they were rental properties). The principal residence exemption exempts the gain on the sale of your home (in which your reside) from tax. Thank you Michael for your question.

As an Accountant in Toronto, I can tell you that the gain on your 2 condos will likely be considered to be a capital gain. Only 50% of a capital gain is taxable. Therefore, if your gain on the sale of the condos, after subtracting legal fees and commissions, was $100,000, then the taxable portion would be $50,000.

Even though you are using the proceeds from the sale of the condos to purchase a home in which you will live, the gains on the condos will still be taxable. (I have assumed that you did not live in any of those 2 condos, and that they were rental properties).

The principal residence exemption exempts the gain on the sale of your home (in which your reside) from tax.

]]> Comment on Greetings and Salutations from Allan Madan! by Michael Revis http://madanca.com/archives/archives/47/cpage/1#comment-18 Michael Revis Fri, 12 Feb 2010 18:25:13 +0000 http://madanca.com/blog/madanca-greetings#comment-18 Hi Allan, I was wondering if you could answer a question regarding my real estate investments. I have two condos - one I purchased 6 months ago, one 2 years ago. I want to sell them both so I can purchase a house. Will I get taxed on the capital gains of the condos even though I am buying a house with the money? Also, are there any other taxes or financial commitments I must make? Hi Allan,

I was wondering if you could answer a question regarding my real estate investments. I have two condos – one I purchased 6 months ago, one 2 years ago. I want to sell them both so I can purchase a house. Will I get taxed on the capital gains of the condos even though I am buying a house with the money? Also, are there any other taxes or financial commitments I must make?

]]> Comment on Greetings and Salutations from Allan Madan! by Damian http://madanca.com/archives/archives/47/cpage/1#comment-17 Damian Tue, 09 Feb 2010 04:33:20 +0000 http://madanca.com/blog/madanca-greetings#comment-17 Nice greeting for your first entry. Look forward to more. Nice greeting for your first entry. Look forward to more.

]]> Comment on 10 Best Tax Tips by admin http://madanca.com/archives/archives/26/cpage/1#comment-16 admin Wed, 03 Feb 2010 05:47:34 +0000 http://madanca.com/blog/10-Best-Tax-Tips#comment-16 Thank you for the question Frank. You can pay your wife a salary as long as the salary is reasonable and is based on the work performed. For example, if your spouse is performing data-entry, and works only 1 hour per week, it would not be reasonable to pay your spouse a salary of $60,000 / year. As a Toronto Accountant, I recommend that you keep time sheets for the hours worked by your spouse and pay the market rate for the type of work that your spouse is performing. You should also consider drafting an employment contract with job description, duties, wage rate and expected hours of work. Thank you for the question Frank. You can pay your wife a salary as long as the salary is reasonable and is based on the work performed. For example, if your spouse is performing data-entry, and works only 1 hour per week, it would not be reasonable to pay your spouse a salary of $60,000 / year.

As a Toronto Accountant, I recommend that you keep time sheets for the hours worked by your spouse and pay the market rate for the type of work that your spouse is performing. You should also consider drafting an employment contract with job description, duties, wage rate and expected hours of work.

]]>