Tag: Personal tax

Tax Tips for Retirement in Canada

Planning for retirement is crucial in order to ensure you can have the retirement lifestyle you envision. One important aspect to keep in mind during this planning is the associated tax benefits and implications. The following are some techniques of reaping tax benefits when saving for retirement in Canada.  1)  Contribute to RRSP The first … Continue reading Tax Tips for Retirement in Canada

Will I have to report any taxable benefit on the personal tax return for exercising employee stock options at a private corporation?

Generally, in the year the employee stock options are exercised, a taxable employment benefit equal to the difference between the exercise price and the fair market value of the stock on the date of the exercise has to be reported as income on the personal tax return. If shares of a Canadian-controlled private corporation (CCPC)are … Continue reading Will I have to report any taxable benefit on the personal tax return for exercising employee stock options at a private corporation?

Can I automatically claim the family caregiver amount if I claim the caregiver amount?

Claiming the caregiver amount does not necessarily mean that you can claim the family caregiver amount as well. The family caregiver amount can only be claimed if the person you took care of has mental and/or physical impairment(s).

How to Setup your Family Trust in Canada

Many Canadian business owners are advised to form a Family Trust in Canada considering its many advantages, in particular saving taxes. However, very few business owners are aware of the steps required to actually form a family trust. This article will cover: (A) How a family trust operates and (B) The steps needed to establish … Continue reading How to Setup your Family Trust in Canada

Canada Revenue Agency Reviews

The Canada Revenue Agency reviews and checks your personal tax returns routinely, as part of the processing process. The CRA calls it the pre-assessment or processing review. This article will describe the reasons why the reviews are done, what the routine review inquiries are, and what you can do to satisfy the requirements and appease … Continue reading Canada Revenue Agency Reviews

If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

Yes, there is a taxable benefit to you should your employer lease a car for you. These benefits are knows as the stand-by-charge and the operating cost benefit. The stand-by-charge means that you derive a benefit simply because the leased car is available for your use. The operating benefit is calculated based on the personal … Continue reading If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

I earn some investment income, in addition to my employment income, can I deduct the tax preparation/accounting fees from them?

That depends largely on the amount of the investment income, in relation to the total income. If the investment income is a small amount compared to the total income, then it will difficult to argue for it. For example, if employment income is about $100,000 and investment income is about $70, then it will be … Continue reading I earn some investment income, in addition to my employment income, can I deduct the tax preparation/accounting fees from them?

Best Income Splitting Strategy – Prescribed Rate Loan

Are you in a higher tax bracket than your spouse and tired of paying way too much in taxes to the government? If yes, then use the best income splitting strategy – the Prescribed Rate Loan. Income Splitting The best income splitting strategies are able to effectively transfer income from the higher income spouse to … Continue reading Best Income Splitting Strategy – Prescribed Rate Loan

Can I charge any interest rate for a spousal loan?

To avoid attribution rules, you should ensure the interest rate is greater than or equal to the prescribed interest rate set by the Canada Revenue Agency (CRA). The CRA adjusts the prescribed interest rate each quarter; you can find the appropriate interest rate here.  

What is a T1-OVP?

A T1-OVP is a form where you report the contributions you made to your RRSP account, and disclose the deduction limit that you had. You are required to complete the T1-OVP when you contribute more than your deduction limit. The T1-OVP shows you how much you will have to pay in tax. The penalty for … Continue reading What is a T1-OVP?

Secret Tax Credits for Canadians Watch Video

There are hidden and secret tax credits for Canadians that can reduce your tax bill significantly.

Secret Tax Credits for Canadians

There are hidden and secret tax credits for Canadians that can reduce your tax bill significantly. This short video and article reveals the top secret tax credits that the government doesn’t want you to find out about. Continue reading to find out more.

Are there any pitfalls I should be aware of when selling a stock in a loss position?

This is a good strategy if you have capital gains in the current year or the past 3 years. However, you should be aware of the ‘Superficial loss’ rule. This rule states that if you sell your stock at a loss, and subsequently you or someone ‘affiliated’ to you (eg. Your spouse, etc) repurchases the … Continue reading Are there any pitfalls I should be aware of when selling a stock in a loss position?

Voluntary Disclosure Program for Canadian Taxpayers

Do you have unreported income? The Voluntary Disclosure Program may be able help you avoid CRA penalty charges. Keep reading to find out how… Voluntary Disclosure Program Due to Canada’s independent tax filing system, taxpayers must have a good understanding of their tax filing responsibilities. The Canada Revenue Agency’s (CRA’s) tax filing requirements vary depending … Continue reading Voluntary Disclosure Program for Canadian Taxpayers

Is there any way of waiving my fees for not filing my income taxes?

Question: I did not file my prior year tax return. This was my first year of operations and I was not aware of my filing responsibilities. As I understand, the CRA will charge interest and penalties for late filing and payment. Is there any way I can get these charges waived? Answer: Yes, we would … Continue reading Is there any way of waiving my fees for not filing my income taxes?

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