Personal tax Archives

How are capital gains determined?

My business has capital assets, including office furniture, equipment and vehicles. I sold these assets during the year and my accountant told me that I have a capital gain. What does this mean? Selling assets can trigger a capital gain or capital loss based on the selling prices minus the original cost. If the selling … Continue reading

Are moving expenses a tax deduction, could you explain?

Moving expenses can be incurred by someone for relocation to commence business or employment in another part of Canada. This type of expense can be deduct to the extent of income earned in the new location – means the deduction is limited to the amount of employment income or business income earned at the new … Continue reading

What does the CRA mean by other sources of income?

This is a catch-all category that captures taxable income which does not qualify as one of the primary sources. Major types of other income include: Benefits received from RRSP (including from a registered retirement income fund) Employer pension plan Old-age security from the government of Canada Benefits from employer’s deferred profit-sharing plan Canada, Quebec, or … Continue reading

What are non-capital losses and do they expire?

The tax term for business losses is non-capital losses. Non capital losses can be used to reduce taxable income from a prior year or a subsequent year. If they are not used within a certain time period, then the non-capital losses expire. The time period for utilizing non-capital losses depends on the taxation year in … Continue reading

I am not sure whether or not I have received all my government slips (eg. T4, T4A, T4RSP, etc). What can I do to ensure that I can get a hold of these?

You can simply call the CRA at 1-800-959-8281 and request for a copy. You can also authorize your accountant to request for a copy on your behalf.

Can I utilize my tuition credits on my personal tax returns when I start to work?

Yes, absolutely. If you have previously filed tax returns during school years, CRA should have issued you the notice of assessment stating the unused federal and provincial tuition amounts that were to be carry forwarded. When you start to generate income, these tax credits will be applied – meaning they will help you to … Continue reading

What do I do if I need to make changes on my personal tax return?

There are two options, you can either do it online or by mail. Online: You must register “MY ACCOUNT” with the CRA on their website first, then you need to select “CHANGE MY RETURN” option and submit any changes. By Mail: If you prefer to do it by mail, you will need to complete form T1-ADJ and … Continue reading

Smart Tax Strategies for Investors

This article & video will take you through some smart tax strategies for investors, so let’s dive right in.

Smart Tax Strategies for Investors Watch Video

This article & video will take you through some smart tax strategies for investors, so let’s dive right in.

What do I do with my information and slips (that I used to prepare my income tax return) when I filed my return electronically?

If you e-filed your personal tax return, you don’t need to send CRA all your documentation, receipts or any slips. However, according to CRA, you MUST keep all these receipts for SIX YEARS in case they are being requested. In case that happens, you would have to mail the requested slips to the CRA.

Can I claim EI if I am self-employed?

It is very important that to point out that self-employed contractors are NOT eligible for general EI benefits. If you are unemployed, you will not receive EI. If you were fully self-employed (had no insurable earnings coming in from a job) during the year, there is a “Special EI Contribution” Program for which you are eligible. … Continue reading

What happens if I over contribute to my RRSP savings account?

An over-contribution of $2,000 to your RRSP is allowed. Anything beyond this amount is subject to at a penalty of 1% per month for the months during which the over contribution remains in your RRSP until withdrawal, or until your excess amount is rolled over into the new RRSP deduction limit for the following year. … Continue reading

What happens if you take out your US Retirement savings after moving to Canada?

Under Canada and US tax rules, funds withdrawn from an IRA or 401K are taxed as income in year of withdrawal. The amount withdrawn must be included as income on your Canadian tax return. However, you can claim a a tax deduction for the entire amount of the withdrawal, if all amounts are transferred to … Continue reading

What is shared child custody?

Child custody, if shared (for children under 18), has to be 50% for each spouse. Ontario Family law outlines that each parent cannot hold less than 40% custody, and no more than 60% custody for a child if custody is “Shared”.

How are child support payments calculated?

Both parents, if they will have shared custody, will share the costs of child support. This includes childcare, education, medical/dental, healthcare, and any other general expenses as well. The amount of Child Support is determined by each parent’s Income on the T1 (Personal Tax Return). This amount can simply be looked up on the followingFederal … Continue reading

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