Canada: The Do’s And Don’ts Of Interest Deductibility
Under certain circumstances, loans can qualify to have the interest deducted at tax time provided the money borrowed is used towards an income making venture. While mortgage interest doesn’t qualify, homeowners can use restructuring strategies, such as taking out a home-equity line of credit against their home and use the money for investment purposes. In […]
Read MoreCanada: Indirect Income Verification
The CRA specifically targets small- and medium-sized businesses, because of the perception that their records aren’t maintained as well as other larger companies. One of the ways the CRA looks for tax evasion is through estimating indirect income. The problem is, these estimates are based on assumptions and are not always correct. As a business […]
Read MorePossible tax relief looming for U.S. citizens living in Canada
The Tax Fairness for Americans Abroad Act of 2018, introduced on December 20 by Rep. George Holding of North Carolina, is the first step to try to offer tax relief for Americans working abroad. The implications of the possible changes could impact expatriates living in Canada. The rule would end the country’s current citizen-based taxation […]
Read MoreOttawa raised the Home Buyers’ Plan limit to $35,000 — here’s how to take advantage of it
A recent change to the Home Buyers’ Plan (HBP) makes it considerably more favorable to potential homebuyers. The change increased the amount homebuyers can withdraw tax-free from their RRSP from $25,000 to $35,000. HBP requires that this withdrawal be repaid within 15 years, and is available only to first-time homebuyers – although a new rule […]
Read MoreCanada’s 2019 tax season: 4 things you need to know
Tax season is fast approaching, which can be a very stressful time for many Canadians. In order to minimize the stress and avoid fees, here are four things that will come in handy. Know your deadlines; most know it is April 30, but they differ if you are self-employed. You can add funds to your […]
Read MoreSome unusual tax facts about income, deductions and credits
If you are unsure of what can be a tax credit or deduction, do your research or seek out some professional advice first before you act, or you might face consequences down the road. Illegal activity, medical expenses, employment expenses, pet maintenance and other expenses may or may not be deducted depending on what you […]
Read MoreCRA deploys new weapons against tax evasion: Freezing assets, seizing property
Canada Revenue Agency will be implementing a new weapon to get suspected tax evaders to pay their portion of the tax bill. The CRA will now be utilizing proceeds-of-crime provisions in the law to seize assets of suspected tax evaders. Previously, the proceeds-of-crime provisions were only used for cases of money laundering or terrorism. This […]
Read MoreThings to know for before filing your 2018 taxes
When filing your 2018 tax return, it’s best not to wait until the last minute. Often, when people wait, they become more disorganized in the scramble to get paperwork together. Before you begin be aware of the changes, and if your return is complicated, you might want to consider hiring a tax accountant. This can […]
Read MoreIncome splitting is a dangerous tax game if you don’t know the rules
In Canada, income splitting – the practice of shifting income within a family to avoid high tax rates – is tempting due to steeply graduated tax brackets in many provinces. Anti-avoidance rules make the process tricky; nonetheless, there remain many opportunities to legally use income splitting to lessen one’s tax burden. For example, pension income […]
Read MoreThese are the potential tax measures federal budget watchers are speculating about this year
This year’s federal budget has important implications because of the upcoming October election. Speculation about what it contains, and especially how personal taxes may change are at the forefront. In the pre-budget process some hints at the different tax options being considered include raising taxes for all or making the very rich pay a much […]
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