Tag: Personal tax

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?

How to Increase Your Personal Tax Return Savings

Do you want to know how to increase your personal return tax savings? This article discusses how to save taxes on your 2012 Canadian personal tax return. I am now going to take you through the top 5 ways to save taxes on your 2012 T1, so let’s get started.

How to Increase Your Personal Tax Return Savings Watch Video

Do you want to know how to increase your personal return tax savings?

I’m not sure I will be able to get my T4 slip on time to file my 2012 tax return, what can I do?

If you haven’t received a T4 slip from your employer make sure you request it from them as soon as possible. However, there are cases where you will not be able to get your T4 slip from your employer in time to file your personal tax return. In this case, if you know that you … Continue reading I’m not sure I will be able to get my T4 slip on time to file my 2012 tax return, what can I do?

Do I have to include a taxable benefit in my income for a company provided car?

Question: My corporation owns a vehicle and its available for me to use. Are there any tax implications? Answer: When a corporation owns a vehicle and provides it to an employee’s for usage, the personal KM’s driven are considered a taxable benefit. Therefore, when you file the employee’s T4 slip a standby charge and operating … Continue reading Do I have to include a taxable benefit in my income for a company provided car?

Should I wait to pay my tax balances if I filed a taxpayer relief form?

Question: If I am late-filing a tax return due to an external factor and I did file a taxpayer relief form to explain the situation, should I pay my tax balances owing now or wait till the CRA to process my form? Answer:Well, you do have a choice to defer you payment. However, this will … Continue reading Should I wait to pay my tax balances if I filed a taxpayer relief form?

I have Stock options. What are the tax implications?

This topic can get complex. Therefore, it is highly advised to consult a tax professional. There are three possible scenarios with respect to stock options for tax purposes: On the grant date the exercise price is less than the market value of the shares (i.e. in the money). At exercise date, the difference between the … Continue reading I have Stock options. What are the tax implications?

Are all of my donations eligible for a tax credit (for individuals) or tax deduction (for corporations)?

No, only donations to registered charitable organizations (with the CRA) are eligible for a tax credit for individuals or for a tax deduction for corporations. Before you make a donation, ask the organization if they can provide you with an official donation slip for tax purposes.

What are some of the common mistakes investors make with TFSAs?

Mistake #1 You withdraw money from and make a contribution to your TFSA in the same year without regard to your TFSA Limit. For example, assume that you always contribute the maximum annual amount of $5,500 to your TFSA and you have no contribution room carried-forward from a previous year. If you contribute $5,500 to … Continue reading What are some of the common mistakes investors make with TFSAs?

Are my child/spousal support payments tax deductible?

Child support payments are NOT tax deductible in Canada. In contrast, spousal support payments are tax deductible as long as the taxpayer can provide proof of spousal support payments. The proof can be a separation and/or divorce agreement clearly stipulating the spousal support payment (i.e. if the taxpayer is providing both the child and spousal … Continue reading Are my child/spousal support payments tax deductible?

What’s the difference between a non-capital loss and net-capital loss?

Non-capital losses generally include losses from a business or employment. These losses can be applied to reduce all sources of income in the current tax year, the previous 3 years and the next 20 years. Net-Capital losses are losses incurred from the sale of capital property (e.g. shares, mutual funds, land, buildings, tangible assets). These … Continue reading What’s the difference between a non-capital loss and net-capital loss?

Can I get any tax relief for a bad loan that I made?

Question: I made a loan to a friend to help start up their business. However, his business was not successful and he will not be able to pay back the loan. Is there any tax relief for this bad debt? Answer:If the company the loan was provided to qualified as a Small Business Corporation, you … Continue reading Can I get any tax relief for a bad loan that I made?

Do university students have to file income tax return?

Absolutely. As a student, you must file a return if any of the following situation is applicable to you: you have to pay taxes for the year you have not repaid all amounts withdrawn from your RRSP under the Lifelong Learning Plan You have to contribute to the Canada Pension Plan (CPP) You received Working … Continue reading Do university students have to file income tax return?

Can I deduct massage expenses on my personal income tax return?

Question: My employer offers me employment benefits that covers $750 for massages. If I incurred extra, can I claim it as medical expense on my personal tax return? Answer: Generally speaking, the medical expense incurred by an individual from an authorized medical practitioner that is registered is eligible for claiming medical expenses for tax purposes. … Continue reading Can I deduct massage expenses on my personal income tax return?

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