Tag: Personal tax

How do I get a Social Insurance Number, which is required to be reported on tax returns?

To obtain a social insurance number, you have to apply in-person by visiting a Service Canada centre. You can find the address of the nearest centre to your location on the CRA website. To apply, you must take with you original proof-of-identity documents. These documents must prove your identity and status in Canada. For instance, … Continue reading How do I get a Social Insurance Number, which is required to be reported on tax returns?

End of the Year Tax Tips for 2013 Watch Video

The end of the year provides an optimal time to use a tax savings approach.

Individual Tax Credits That You Can Claim in 2014 Watch Video

For Canadians in 2014, there will be some changes to three existing tax credits.

Tax Planning For Retired Canadians Watch Video

It is essential for seniors to adopt a plan regarding taxes when planning for retirement.

What is the benefit of contributing to a spousal RRSP?

Contributing to a spousal RRSP is advantageous if you and your spouse/common-law partner have different income levels. This is because the spousal RRSP contributions allow spouses to split income more equally at retirement. The spouse who expects to have higher income at the time retirement should be the one to contribute to the spousal RRSP. … Continue reading What is the benefit of contributing to a spousal RRSP?

Can rent paid by a student for residence be claimed on the personal tax return?

No, the rental expense cannot be claimed as either a tax deduction or a tax credit. However, the student may be eligible for the Ontario Energy and Property Tax Credit if applicable criteria are met. This benefit is generally paid to low-to-moderate-income individuals of at least 18 years of age for paying rent or property … Continue reading Can rent paid by a student for residence be claimed on the personal tax return?

Are board and lodging considered a taxable benefit for employees?

Board and lodging provided to employees at unreasonably low rates are taxable benefits. In other words, if the employee paid less than fair market value (FMV) for board and lodging, the employer will need to include the T4, the FMV of the cost less the amount the employee actually paid.  

Have the CPP and EI max thresholds changed for 2014?

The maximum CPP contribution for 2014 is $2,425.50 for employee contribution and $4,851.00 for self-employed contribution. The maximum EI contribution to the plan for 2014 is $913.68.

Tax Tips for Retirement in Canada

Planning for retirement is crucial in order to ensure you can have the retirement lifestyle you envision. One important aspect to keep in mind during this planning is the associated tax benefits and implications. The following are some techniques of reaping tax benefits when saving for retirement in Canada.  1)  Contribute to RRSP The first … Continue reading Tax Tips for Retirement in Canada

Will I have to report any taxable benefit on the personal tax return for exercising employee stock options at a private corporation?

Generally, in the year the employee stock options are exercised, a taxable employment benefit equal to the difference between the exercise price and the fair market value of the stock on the date of the exercise has to be reported as income on the personal tax return. If shares of a Canadian-controlled private corporation (CCPC)are … Continue reading Will I have to report any taxable benefit on the personal tax return for exercising employee stock options at a private corporation?

Can I automatically claim the family caregiver amount if I claim the caregiver amount?

Claiming the caregiver amount does not necessarily mean that you can claim the family caregiver amount as well. The family caregiver amount can only be claimed if the person you took care of has mental and/or physical impairment(s).

How to Setup your Family Trust in Canada

Many Canadian business owners are advised to form a Family Trust in Canada considering its many advantages, in particular saving taxes. However, very few business owners are aware of the steps required to actually form a family trust. This article will cover: (A) How a family trust operates and (B) The steps needed to establish … Continue reading How to Setup your Family Trust in Canada

Canada Revenue Agency Reviews

The Canada Revenue Agency reviews and checks your personal tax returns routinely, as part of the processing process. The CRA calls it the pre-assessment or processing review. This article will describe the reasons why the reviews are done, what the routine review inquiries are, and what you can do to satisfy the requirements and appease … Continue reading Canada Revenue Agency Reviews

If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

Yes, there is a taxable benefit to you should your employer lease a car for you. These benefits are knows as the stand-by-charge and the operating cost benefit. The stand-by-charge means that you derive a benefit simply because the leased car is available for your use. The operating benefit is calculated based on the personal … Continue reading If a company leases a car for me, is it a taxable benefit? Is there a way for me to have my company simply pay for it?

I earn some investment income, in addition to my employment income, can I deduct the tax preparation/accounting fees from them?

That depends largely on the amount of the investment income, in relation to the total income. If the investment income is a small amount compared to the total income, then it will difficult to argue for it. For example, if employment income is about $100,000 and investment income is about $70, then it will be … Continue reading I earn some investment income, in addition to my employment income, can I deduct the tax preparation/accounting fees from them?
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