Personal tax Archives

Best Income Splitting Strategy – Prescribed Rate Loan

Are you in a higher tax bracket than your spouse and tired of paying way too much in taxes to the government? If yes, then use the best income splitting strategy – the Prescribed Rate Loan. Income Splitting The best income splitting strategies are able to effectively transfer income from the higher income spouse to … Continue reading

Can I charge any interest rate for a spousal loan?

To avoid attribution rules, you should ensure the interest rate is greater than or equal to the prescribed interest rate set by the Canada Revenue Agency (CRA). The CRA adjusts the prescribed interest rate each quarter; you can find the appropriate interest rate here.

What is a T1-OVP?

A T1-OVP is a form where you report the contributions you made to your RRSP account, and disclose the deduction limit that you had. You are required to complete the T1-OVP when you contribute more than your deduction limit. The T1-OVP shows you how much you will have to pay in tax. The penalty for … Continue reading

Secret Tax Credits for Canadians Watch Video

There are hidden and secret tax credits for Canadians that can reduce your tax bill significantly.

Are there any pitfalls I should be aware of when selling a stock in a loss position?

This is a good strategy if you have capital gains in the current year or the past 3 years. However, you should be aware of the ‘Superficial loss’ rule. This rule states that if you sell your stock at a loss, and subsequently you or someone ‘affiliated’ to you (eg. Your spouse, etc) repurchases the … Continue reading

Voluntary Disclosure Program for Canadian Taxpayers

Do you have unreported income? The Voluntary Disclosure Program may be able help you avoid CRA penalty charges. Keep reading to find out how… Voluntary Disclosure Program Due to Canada’s independent tax filing system, taxpayers must have a good understanding of their tax filing responsibilities. The Canada Revenue Agency’s (CRA’s) tax filing requirements vary depending … Continue reading

Is there any way of waiving my fees for not filing my income taxes?

Question: I did not file my prior year tax return. This was my first year of operations and I was not aware of my filing responsibilities. As I understand, the CRA will charge interest and penalties for late filing and payment. Is there any way I can get these charges waived? Answer: Yes, we would … Continue reading

What to Know About Income Tax Preparation in Toronto

Most Canadians around this time of the year are stressing about their taxes. If you do not possess an extensive tax background then calculating your personal taxes can be frightening. After reading this article you will discover the best approach to income tax preparation in Toronto. Background All Canadians not just Torontonians must file income … Continue reading

How to Complete Form T2125 for a Sole Proprietor

With tax season rapidly approaching everyone wants to know the most efficient way to complete their taxes. While getting taxes done quickly is beneficial to most, you could miss out on important savings that may be available. Through this quick tax tutorial designed for business owners, one can expect to learn which form to complete … Continue reading

What tax refunds and benefits am I eligible for?

Understanding Your Benefits and What Tax Refunds You Are Eligible For: The Simple Guide to Improving Your Economic Well-being Benjamin Franklin once said “In this world nothing can be said to be certain, except death and taxes”. His point remains as relevant today as it was in the 18th century, everybody hates taxes (except the … Continue reading

Minimizing Capital Gains Tax

A lot of people pay way more tax more than they need to on net capital gains. Most people do not realize there are a few ways to reduce and sometimes eliminate capital gains altogether. In this article I will talk about a few different, but simple ways you can reduce your capital gains tax … Continue reading

Tips for Saving Taxes in Canada

Have you ever asked yourself, “How can I reduce my income taxes?” Chances are you have, especially close to April 30th, the due date for personal tax returns in Canada. This article explains how to reduce income taxes, by applying the 10 best tax tips for individuals:

Should I setup a Family Trust in Canada?

Canadian business owners, setup a Family Trust in Canada to save taxes. This article will cover how a Family Trust in Canada can result in substantial tax savings for Canadian business owners who are incorporated. What is a family trust? A family trust can be described as the relationship that exists between 3 parties: The … Continue reading

How to Minimize Taxes on Your Salary and Wages Watch Video

What if you are told that you can save money in taxes even if you are a salaried individual? Sounds good?

I purchased a computer for employment purposes. As an employee, can I deduct this as employment expense?

In order to claim employment expenses incurred to earn employment income, you need to request a signed T2200 from your employer. However, the CRA has specifically mentioned that if you buy a computer or other capital assets, you cannot deduct this cost. Further, you cannot capitalize and depreciate (claim CCA) on capital purchases.

Tag: Personal tax