This article talks about 2012 tax deductions for individuals. I am going to review the five most missed tax deductions. So, let’s get started.
Stock Market Losses
If you sell a money loosing stock, mutual fund, or share, you can claim a tax deduction for a capital loss. Capital losses can only be offset against capital gains in the year. If you are unable to use a capital loss in the 2012 year, then you can carry it back to any of the three preceding years and use it then, or carry it forward indefinitely until you are able to use the capital loss. Note that capital losses realized inside a TFSA or an RRSP cannot be claimed as a 2012 tax deduction for individuals.
Moving for a New Job
If you move 40 kilometres closer to a new residence for work, school or business then you can claim a tax deduction for moving expenses paid. Moving expenses include car expenses, meals, hotels, and fees paid to a mover.
Donations Made to Charity
This is one of the most missed 2012 tax deductions for individuals. Donations made to a registered charity can be claimed for a tax credit. The value of tax credit is 15% for the first $200 of donations made, and 29% for donations over $200. Make sure that you get the receipt from the charity and also make sure that the registration number of the charity is clearly displayed on the receipt.
Public Transit Passes
You can claim a tax credit for purchases made for public transit passes for subways, street cars, and trains. Only certain types of passes qualify for this credit. For example, unlimited monthly passes and electronic payment cards qualify, if used at least 31 day trips during the month. Note that ride or trip passes don’t qualify for this credit because they are not of an unlimited nature.
First Time Home Buyers
If you are a first time home buyer, you can claim a credit of $5000 on your tax return in 2012, and this makes for the fifth and final tax deduction for 2012 in this list.
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