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Offshore Voluntary Disclosure Program?

The Offshore Voluntary Disclosure Program (OVDP) is a program set up by the IRS to allow anyone living in another country, who owes the United States taxes, the opportunity to get caught up and rectify any outstanding tax related issues. It originally was used to force individuals who used offshore accounts for tax avoidance or … Continue reading Offshore Voluntary Disclosure Program?

Credit vs. debit on vehicle fuel

Simply put, the reason you’d want to pay for your gas/car fuel with credit rather than cash or debit is so the Canada Revenue Agency has a better record of your transactions. The CRA might ask you for more information or clarification about your transactions if you pay for gas with cash or debit, even … Continue reading Credit vs. debit on vehicle fuel

Washer and dryer for rental property?

As long as the washer and dryer are strictly for the rental property, then you can claim them as a capital cost allowance deduction, otherwise known as depreciation. The CRA allows you to claim up to 20% of items under class 8 on your return, since those items’ capital cost will lose value as the … Continue reading Washer and dryer for rental property?

Can you claim income tax preparation software?

If you have purchased the software for personal use, then the Canada Revenue Agency would regard that as a personal expense. In that case you would not be able to claim the cost of any tax preparation software on your tax return. If you are self employed, you can deduct tax return preparation fees from … Continue reading Can you claim income tax preparation software?

What is the Ontario Opportunity Fund?

The Ontario Opportunities Fund is a fund set up by the government of Ontario to allow residents to help reduce the province’s deficit. Taxpayers can do this by making monetary donations to the Crown, which the government will consider a gift. You will not be able to receive any deductions for contributions made to this … Continue reading What is the Ontario Opportunity Fund?

Can I claim tuition that my employer partially paid for?

You will be able to claim the half of the tuition you paid for as a credit. The Canada Revenue Agency says that in order to claim tuition fees as a tax credit, the fees must not be paid for or reimbursed by your employer. However, since your employer only paid for half of your … Continue reading Can I claim tuition that my employer partially paid for?

Can you claim a 16 year old as a dependent?

Unfortunately, the eligible dependent tax credit of $11,138 and the tax credit for children under 18 of $2,234 can only be claimed by the parent with custody of the child. From what you’ve said, it seems that your daughter’s mother has custody of the child and lives with her, which would give her the right … Continue reading Can you claim a 16 year old as a dependent?

What is the difference between EFILE and NETFILE?

Both EFILE and NETFILE are two separate electronic tax filing services provided to taxpayers by the Canada Revenue Agency through their website. However, they both serve a different purpose for different people. EFILE is a service that is designed for individuals who prepare and file taxes on behalf of others (i.e. accountants or tax preparation … Continue reading What is the difference between EFILE and NETFILE?

Can I claim last year’s tuition amount this year?

If you have tuition fees from previous years that you have yet to claim on your tax return as a tuition credit, you can do so by simply filing an adjustment with the Canada Revenue Agency. Tuition credits can be carried forward, but the right steps need to be taken before you can use them. … Continue reading Can I claim last year’s tuition amount this year?

Anyway to claim unreported RRSP contributions on last year’s tax return?

You have to report the RRSP contributions you made between January 2014 and March 1st, 2014 on your 2013 tax return even though you did not have available RRSP room. While the contributions are reported on the 2013 return, they are not deducted from income. Instead the undeducted RRSP contributions are carried forward to future … Continue reading Anyway to claim unreported RRSP contributions on last year’s tax return?

Can I claim current year stock loss towards gains last year?

Selling your stock at a loss would be a net capital loss and the CRA allows you to apply any net capital losses to the capital gains in any of the previous three taxation years. So yes you can use the loss on the sale of your stocks to help offset some of the prior … Continue reading Can I claim current year stock loss towards gains last year?

Who is eligible for caregiver tax credit?

You can claim the family caregiver amount for the following relatives: Child or grandchild Sibling Nephew or niece Uncle or aunt Parent or grandparent However, the family members you are trying to claim the amount for must also meet the following criteria: 18 years or older when they lived with you, Residents of Canada Had … Continue reading Who is eligible for caregiver tax credit?

Re: Are there benefits to purchasing U.S. property through a Canadian corporation?

If you purchase vacation property in Florida through a Canadian corporation you’ll benefit from a few perks. One of those perks is that you’ll be able to avoid paying an estate tax on the property when you die because Canadian corporations are not subject to the U.S. estate tax. Another advantage to purchasing property in … Continue reading Re: Are there benefits to purchasing U.S. property through a Canadian corporation?

Which spouse should claim dividend credit?

When reporting dividends, there’s two factors to take into consideration: the dividend tax credit and the spousal tax credit (also knows as the spouse or common-law partner amount). The dividend tax credit is granted to Canadians who own shares in a corporation to help reduce their final tax owed (it varies from person to person). … Continue reading Which spouse should claim dividend credit?

How often must a T2201 form sent to CRA?

The T2201 Disability Tax Credit Certificate form only has to be filled out once, and then it is on file with the CRA so they have a record of it. If they need to re-assess you, they will contact you and let you know when or if you need to fill out another form and … Continue reading How often must a T2201 form sent to CRA?

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