Tag: Personal tax

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?

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?

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