Answers Archive

Shouldn’t I be saving more on my taxes?

No Antonio you didn’t, but this is a common issue that a lot of people (even some professionals) tend to be confused about. A tax credit is NOT a tax deduction, and vice versa; they are different and benefit you in different ways. Tax deductions are subtracted from your total income as a way to … Continue reading

I haven’t been in Canada for several years and need to update my tax records, what should I do?

Hello, For 2009, you can get a copy of your T4 slips by calling the CRA. For the years you were in England, your tax responsibilities depend on your residency status. Because you became a non-resident of Canada when you left for England, you are only taxable in Canada on your worldwide income up to … Continue reading

Evaluated by the CRA?

Hello. The first step is to file a formal notice of objection. You must do this within 90 days from the date of mailing of the notice of reassessment or one year from the due date of the return (whichever one is later). A CRA appeals officer will then review your objection. If you decide … Continue reading

Can I still file my income tax return even though I haven’t received my T4 slip from my workplace?

Hello Harpreet, It should be noted the T4 is your employer’s responsibility and not yours. However, if a company shuts down they may or may not honour that responsibility. As you wait for your T4, the CRA (Canada Revenue Agency) allows you to use the last paystub of the year as a temporary receipt, so … Continue reading

Client wants to take part in Offshore Voluntary Disclosure Program

From what you’ve mentioned in your question it would seem you may be in a rush with getting this client’s file together. If that is the case, it should be noted that it is integral to be concise when filing for the Offshore Voluntary Disclosure Program (OVDP). Missing even the most minor of steps could … Continue reading

I have a rental property, should I claim depreciation? What are the pros and cons?

The advantage of claiming CCA (i.e. tax depreciation) is that you will receive a tax deduction immediately, thereby reducing your taxes payable. The disadvantage is that when you sell the property, any CCA previously claimed must be included in your income in the year of sale – this is know as ‘recapture’. Even though the … Continue reading

Prepare tax return on my own or hire someone?

The answer to this question varies greatly depending on your situation. From the information you’ve provided, you already seem to understand what it takes to file and complete your own personal tax return (as you’ve done it before), but if you don’t feel comfortable with doing the returns on your own, that’s where a tax … Continue reading

Added money to my RRSP and now I need to claim it on my taxes, but can’t find the contribution slip

Thanks for your question Harry. When you deposited money into your RRSP you should have received a receipt to reflect the transaction. You can use that receipt in place of the contribution slip, temporarily. However, you must send a letter along with that receipt explaining why you don’t have the contribution slip and what you … Continue reading

Do I need housing receipts?

Hello, Even if you are a former tenant, they are breaking the law if they refuse to issue a receipt. Remind the landlords that they are breaking the law. If they do not comply, report them to Investigation and Enforcement Unit of the Ministry of Housing. If you are in Ontario call them here 1-888-772-9277. … Continue reading

US Property Deed Transfer to US Permanent Resident Child

Yes, you will be liable for a capital gains tax on the transfer of the land to your child, in Canada. This is because the land will be considered to be sold for market value upon the transfer to your child. You may also have to pay a gift tax in the US on this … Continue reading

Education or Work Expense Tax Credit

You cannot deduct the cost of the laptop and office equipment from your employment income. You may be able to claim a medical expense tax credit for certain equiment that you require for medical reasons. A doctor will need to certify in writing that you require this special equipment.

Tax-free allowances in overseas jobs

The housing allowance (free lease) is a tax free benefit for you since you are working at a ‘special work site’. A speical work site is a location where it’s too far for you to commute to each day, where the assignment is temporary (e.g. 2 years) and where you still maintain your current primary … Continue reading

T1 Adj

You will need to adjust schedule 2 of your T1 return to reverse the tuition amount transferred to your spouse. Your spouse will also need to adjust schedule 1 of her tax return to reduce the amount of tuition transferred to her to $0.

Prior year adjustments

If you adjust the prior year’s financial statements, then you are supposed to file an amended tax return for that year, even if the impact is small. To avoid the hassle, consider posting the adjustment in the current period so that you don’t have to re-file last year’s taxes again.

First Time Home Buyer Looking To Rent Main Floor, what can I / can’t I write off?

You first need to determine the total size (square feet) of the home and then the size of the area that you are renting. For example, assume that the total size of the home is 3,000 square feet and you are renting out the main floor, which is 1,000 square feet large. Therefore, you can … Continue reading

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