Answers Archive

Investing in real estate?

Hi Sunny, there’s a lot of money to be made by investing in real estate (through renovating existing properties, renting property or even partnerships for long term investments), but none of that money can be made if you can’t keep track of where it’s coming from or where it’s going. That’s why financial records need … Continue reading

Re: Can you claim driver’s education amounts?

Unfortunately, you cannot claim driver’s education courses for either yourself or your dependent at this time, as the Canadian government does not allow deductions for driver’s license tuition amounts.

Monetary Gifts to Family Member?

Officially, Canada does not have a gift tax. However, there are attribution rules that may apply to your situation. Let’s say you gift money to your children under 18, and they invest it. The interest/dividends would be attributed back to you, and you would report it as income. Then, you would pay the appropriate tax. … Continue reading

Can I claim medical expenses on my tax return if I have no Income?

If your client hasn’t received any income within the last year, he doesn’t have to file a tax return but it would still be beneficial for him to do so, as there are some credits (or the possibility of a refund) that he might be able to take advantage of such as applying for the … Continue reading

Can I write off training costs?

Training costs are not deductible as expense if they are capital expenditures. They are considered to be capital in nature when the training results in a lasting benefit to the taxpayer (i.e. where a new skill is acquired). Where the training is taken to maintain, update, or upgrade an already existing skill, the training is … Continue reading

Re: What are some tax implications to consider retirement homes?

Hello. There are some retirement homes that provide the use of attendants. Examples of attendant-provided services are meal-preparation, hygiene assistance, and supervision of medication. It is these types of retirement homes that may be used to claim the disability credit and medical expenses. In order to qualify, however, one of two conditions must be met. … Continue reading

Re: Can my parent benefit from systematic withdrawal plan?

A systematic withdrawal plan works by selling a portion of your mutual funds to give you the set amount you have requested. With an RRIF, there is a minimum amount that you must withdraw each year. Keeping the requested amount as low as possible is the best way to keep the taxes down. Also, you … Continue reading

Do I have to provide a T4 for my employees if I pay cash?

You must provide a T4 if any of the following conditions are met: You deducted income for CPP/QPP contributions, EI premiums, income tax, or Québec PPIP premiums The payment was more than $500 Assuming you did not pay your cousin more than $500, you do not have to use a T4. Your cousin would then … Continue reading

Re: What is the deadline for the self employed to file taxes?

The deadline to file taxes for the self employed was June 16, 2014. If you haven’t already done so, you need to file as soon as possible as you may face a late filing penalty of 5% on whatever balance you owe in addition to another 1% per month for every full month you don’t … Continue reading

Can i still claim elligible dependent for my child if he works and goes to school?

You cannot claim your son as an eligible dependent as per the criteria by the CRA. The requirements needed to be eligible to claim your son as a dependent are: You cannot have a spouse or common law partner within the year you want to claim a dependent; if you did have a spouse they … Continue reading

What are the legalities surrounding donations to charity?

A registered charity should only issue receipts for the actual amount donated. Even if you give the money in good faith, if you claimed the extra $35,000 on the receipt you would be responsible for paying back any refund. This would include any penalties and interest. Only registered charities can issue receipts for income tax … Continue reading

Can I deduct my student loan on my Income tax return?

You are able to claim the interest you pay on your student loan as long as the loan is from the Canada Student Loans or the Canada Student Financial Assistance program. There are other similar programs for post-secondary education that would meet the requirements as well, it varies on the province or territory you live … Continue reading

What do I do with my properties overseas?

Hello, These expenses are used as part of your adjusted cost base (ACB), which in turn is used to calculate your capital gains. The higher your ACB is, the lower your capital gains and your tax bill. As you have more than one property, make sure you are tracking each one separately. It is normally … Continue reading

Re: Is being reviewed the same thing as being audited? Am I in trouble?

Being audited and being reviewed are not the same thing. A review is a check to see that you claimed your deductions and credits correctly. Although some reviews are purely random, there are several factors that may lead to a CRA review. If you have had a history of non-compliance, or have claimed a higher … Continue reading

Re: How should I give my customer a portion of my earnings? Will a rebate work?

Hello. I would say that paying the rebate as a gift is too dangerous in this case because the CRA can challenge you on your decision. If the amount of the rebate is determined to be unreasonable, they will not allow you to claim it as an expense. The best way to make the payment … Continue reading

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