Category: Personal Tax

What happens to my assets upon divorce?

All assets acquired before marriage or “gifted” at marriage for marriage need not be split as they’re considered assets belonging only to the person that holds legal entitlement. Assets acquired during marriage or by virtue of marriage must be split among spouses (50% each). Assets that are to be split are valued at FMV (Fair … Continue reading What happens to my assets upon divorce?

How do I pay personal income tax balance owing to the Canada Revenue Agency (CRA)?

There are 3 options in terms of payment for a balance owing to the CRA: Set-up your account through “My Payment” and pay online OR Go to your local bank branch and pay there OR Mail a cheque with the following information: Amount of Balance Owing Name of recipient: Receiver General Mailing address: 1050 Notre Dame … Continue reading How do I pay personal income tax balance owing to the Canada Revenue Agency (CRA)?

Can we reduce our revenues by the dividends we paid?

No, dividends are not an expense.  

Does the strategy of high dividends and low salaries limit our ability to contribute to RRSPs?

Yes, for two reasons.  First, you will have to pay personal income tax on money withdrawn from your corporation to fund the RRSP contributions. Second, I expect your personal income tax to be very low, so the RRSP deduction will not be helpful to you.  

As an individual, how can I minimize my overall tax burden this year?

We have completed an excellent and in depth guide called “20 tax tips to beat the tax man for 2011”. This amazing book can show you great ways to minimize your tax burden and help you maximize your tax refund.  You can get it through this website here.  

I paid interest on my student loans this year, can I claim these as an expense?

Yes, you can deduct the interest paid on student loans for the year off of your taxable income. You may be eligible to claim an amount for the interest paid on your loan in 2011 for post-secondary education if you received it under: the Canada Student Loans Act; the Canada Student Financial Assistance Act; or … Continue reading I paid interest on my student loans this year, can I claim these as an expense?

What Happens To Your Child’s RESP When You Leave Canada?

You have to be a Canadian resident to receive the government grant related to RESPs. The tax-sheltered status of the RESP only applies to Canadian residents. If the subscriber or account owner is a non-resident, they might have to pay taxes on any income earned in the RESP account as well as capital gains, according … Continue reading What Happens To Your Child’s RESP When You Leave Canada?

Pin It on Pinterest