Investment income earned by Canadian Controlled Private Corporations (“CCPC’s”) includes rent received (Canadian and foreign), interest, royalties, dividends, and taxable capital gains. CCPC’s pay income tax at a rate of 48% on investment income.This is significantly higher than the tax rate of 15.5% levied on business profits.
US personal tax returns are due on April 15 of the following taxation year. However, if you live and work outside the US on a normal basis, the deadline is automatically extended to June 15. Furthermore, any taxpayer may request additional time to file by filing this form to the IRS by their due date. … Continue reading When are U.S. Personal Tax Returns due?
Yes, medical expenses are claimed in the year in which the payment was made and not when the actual procedure happens. So for example, you paid for your January 2014 operation in December 2013, you will be able to claim the medical expense on your 2013 tax return.
Unfortunately, it is not possible to opt out of making CPP contributions, unless you are within the age bracket of 65 to 70. In that case, you have a choice to pay or stop paying CPP contributions. Form CPT30, Election to Stop Contributing to the Canada Pension Plan or Revocation of a Prior Election, must … Continue reading Can I opt out of making CPP contributions?
RRSPs allow you to build wealth by deferring gains and income (and taxes) on investments until the funds are withdrawn or your RRSP is closed (age 72). This means you will save taxes when you contribute to your RRSP, but you will pay taxes at withdrawal. Ideally, funds contributed to RRSPs should not be touched … Continue reading Should I contribute to RRSP or TFSA?
If alternative minimum tax was paid by you in any of the past seven tax years (ex. 2006-2012), and no minimum tax is required to be paid for the 2013 tax year, you will be eligible to claim credits in 2013 for all the minimum tax paid between 2006-2012 in order to reduce your taxes. … Continue reading What is the minimum tax carryover?