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When do tax implications occur for owning precious metals, such as gold and silver?
Tax consequences for gold/silver arise only upon sale or deemed disposition. Once sold, the income may be business income or capital gain depending on the facts. IT- 459 discusses the factors that indicate whether a transaction is a capital or income transaction. For instance, if an individual buys and sells gold regularly, then it will be … Continue reading When do tax implications occur for owning precious metals, such as gold and silver?
I have a vacation property outside Canada and it is never rented out. The cost is greater than $100,000 CAD. Do I have file form T1135 with my personal tax return for this property?
No, as long as the property is solely used personally, it is not required to be reported on T1135.
Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?
In order to open an RESP account, the subscriber and the beneficiaries (children) do not need to be Permanent Residents of Canada. However, the beneficiary is required to be a Canadian resident for tax purposes and have a valid SIN. For more information on residency status, please visit CRA page on Residency status If you … Continue reading Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?
Do I have to report my income from hobby sales?
According to the Canada Revenue Agency (CRA), hobby income must be reported on your tax return if it generates a profit (revenue in excess of expenses). In the eyes of the CRA, this is a strong indication that the hobby is a venture with an expectation of profit. If, however, the hobby results in a … Continue reading Do I have to report my income from hobby sales?
Is it better to take a Salary or Dividend?
Whether to take a salary or dividend from the corporation is a complicated decision that a small business owner usually has to make. This article indicates advantages of both alternatives so you can decide which option is beneficial for you! Advantages of taking Salary Increase your RRSP contribution limit By taking a salary from your … Continue reading Is it better to take a Salary or Dividend?
Can I deduct interest paid on loans?
You can deduct interest incurred to earn investment income (dividends and interest) from investments such as bonds and stocks. However, interest incurred on non-investment loans or investments that generate only capital gains are not deductible. It makes sense to pay off loans giving rise to non-deductible interest (i.e. mortgage on your principal residence) first and … Continue reading Can I deduct interest paid on loans?
Who can claim the Overseas Employment Tax Credit?
In order to claim the Overseas Employment Tax Credit, individuals are required to be a Canadian resident or deemed resident at any time in the year AND earn employment income from performing at least 90% of the work outside of Canada for more than six consecutive months with a specified employer. As well, the employment … Continue reading Who can claim the Overseas Employment Tax Credit?
What happens if I over contribute to my RRSP?
You have excess RRSP contributions if the total of: Your unused contributions from prior years, Your current year contributions, and $2000 is more than your RRSP deduction limit shown on your latest Notice of Assessment. You have to pay a tax of 1% per month on your excess contributions for every month that the contributions … Continue reading What happens if I over contribute to my RRSP?
I have very low or no income, do I need to file a tax return?
If you are older than 18 years of age, you should file a tax return in order to apply for and receive certain government payments such as GST and Ontario Sales Tax refunds, Canada Child Tax Benefit and Guaranteed Income Supplement for seniors. You can also accumulate RRSP contribution room based on your earned income, … Continue reading I have very low or no income, do I need to file a tax return?
Do I need to keep a logbook to claim motor vehicle expenses on my return? What should I include in the book?
Only motor vehicle expenses incurred during business use is eligible for deduction. The CRA considers travel between home and the principal place of business to be personal use. In order to substantiate your motor vehicle claims, you should keep a detailed logbook to track the business/personal use of the vehicle. The Income Tax Act does … Continue reading Do I need to keep a logbook to claim motor vehicle expenses on my return? What should I include in the book?
How much can I deduct for past service contributions to a RPP while not a contributor prior to 1990?
Under the employee contribution rules for past service contributions while not a contributor on and after 1991 for service prior to 1990, a maximum of $3,500 may be deducted per year for contributions that were made for years of service prior to 1990. The overall limit is $3,500 times the number of years of pre-1990 … Continue reading How much can I deduct for past service contributions to a RPP while not a contributor prior to 1990?
What are the conditions to open a TFSA (Tax-Free Savings Account)?
Three conditions must be met: You must be an individual who is over the age of 18 You must have a Canadian social insurance number You must be a resident of Canada
What are the Tax Deductions for 2012 in Canada? Watch Video
This article talks about 2012 tax deductions for individuals.
Do I have to include a car allowance that I receive from my employer in my income?
An automobile allowance paid by an employer to his employee is taxable to the employee, unless it is based on actual kilometers driven by the employee. For example, a flat monthly car allowance of $500 would be a taxable benefit to the employee, and should be included in the employee’s T4 slip. For an employer … Continue reading Do I have to include a car allowance that I receive from my employer in my income?
If an employer is provided with travel allowance, is it a taxable benefit to an employee?
Question: I have employees that are driving frequently due to the nature of their work. If I provide them with a car allowance, is it a taxable benefit to them? Answer: As a corporation, you can pay them a flat allowance, but then it would be part of their regular payroll. The employee would then … Continue reading If an employer is provided with travel allowance, is it a taxable benefit to an employee?
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