Tag: Personal tax

Is there ever a circumstance where the CRA can refuse to issue my refund?

Yes, one such circumstance where the CRA can refuse to issue your refund is when the taxable income for a tax year is reported after 3 years of the reporting period. For example, if the tax return for the 2008 year is filed on September 2013, the CRA can refuse to issue that refund because … Continue reading Is there ever a circumstance where the CRA can refuse to issue my refund?

As a GST/HST registrant, when am I required to start collecting HST on sales?

You are required to collect HST when your taxable sales (over the last 4 quarters) exceeds the $30,000 threshold. As a voluntary registrant, you need to collect HST on sales starting on the earlier of: the effective registration date listed on your GST/HST account application, the day of the supply (sale) that made go over … Continue reading As a GST/HST registrant, when am I required to start collecting HST on sales?

I have a family trust owning assets and I’ve heard of something called the 21 Year rule. What does that mean?

After 21 years of the family trust’s formation, the trust is deemed to have disposed of and reacquired certain types of property at their fair market value. This can give rise to a capital gain since most property increases in value over time. The 21 year rule for Trusts and its impact on you, should … Continue reading I have a family trust owning assets and I’ve heard of something called the 21 Year rule. What does that mean?

How far back can the CRA audit an individual or business?

The CRA reserves the right to audit your prior year tax filings going back six years. Hence, you should keep receipts and documentation supporting your claims up to six years.  

What are the consequences of issuing tax slips late?

If you fail to file tax slips by the due date you will be subject to late filing penalty based on the number of slips you file late. For 1-50 slips, the penalty is $10 per day up to a maximum of $1,000. For more information check out this section on the CRA website. However, … Continue reading What are the consequences of issuing tax slips late?

Can you explain how I can withdraw the over-contributed RRSP amounts from the financial institution?

If you over contribute in your RRSP (even beyond the $2,000 allowed) you run the risk of being penalized 1% of the over contribution per month. So when you realize you do not want to leave it in the RRSP and be penalized, you try and withdraw it from the financial institution. However, the institution … Continue reading Can you explain how I can withdraw the over-contributed RRSP amounts from the financial institution?

I am considering taking out a loan to invest through my RRSP/TFSA/RESP. Will the interest on the loan be tax deductible?

No, although interest on loan borrowed to invest through non-registered accounts are tax deductible (normally up to the amount of investment income), interest on loans borrowed to invest through such registered savings plans are not tax deductible.  

How can I check whether the CRA has received my payment?

You can check by giving the CRA a call a few days after the payment is made. The CRA’s contact numbers are listed here. The other option is to log in to your “My Account” on the CRA website and access your information. The registration generally takes around 10 business days.

If I cannot find my tax slips, what can I do?

If you’ve lost/misplaced/or never got your tax slips such as a T4, T4A, T5, T4RSP, etc, you can call the CRA and have them mailed/faxed over to you. You can call the CRA at 1-800-959-8281 to submit a request with a representative.  

Tax Strategies for Newlyweds Watch Video

This short article is called tax tips for newlyweds. If you recently got married and have a hangover

Tax Strategies for Newlyweds

This short article is called tax tips for newlyweds. If you recently got married and have a hangover from the bill, this article is certainly for you.

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?

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