Tax Tips
Tax Free Savings Account
A Tax-Free Savings Account (TFSA) is a registered investment plan that has beneficial tax treatment. A TFSA differs from an RRSP in that the contributions to the TFSA are not deductible, but all of the income earned by investments in a TFSA is not taxable, including when the investments are withdrawn. In an RRSP, contributions…
Read MoreCRA isn’t going to send you to jail over the phone
Not long ago we talked to a client who received a phone call from someone claiming to be the Canada Revenue Agency (CRA). If our client didn’t pay up immediately by providing their financial information – “CRA” claimed they were going to go to jail! This was a scam, and thankfully our client realized this. …
Read MoreApprenticeship Tax Credits
The federal and Ontario governments are currently offering employers of apprentices tax credits with respect to the apprentices’ wages. The federal tax credit is equal to 10% of the eligible salaries and wages paid to the eligible apprentices in respect of their employment. There is a maximum credit for each apprentice of $2,000 per…
Read MoreMILEAGE FOR MEDICAL EXPENSES
Did you know that you can claim travel expenses if you have to receive treatment that is not available to you within 40 kilometres of your residence? October 19, 2011 The cost that is deductible can be public transportation (e.g. taxi, bus, or train) or vehicle expenses if public transportation is not readily available. You…
Read MoreDEDUCTING HOME OFFICE EXPENSES
Are you aware that you can, in limited circumstances, deduct home office expenses? March 21, 2012 The Income Tax Act is quite specific in determining who can deduct home office expenses and what expenses qualify. A deduction for a workplace in the home is only available in one of the two following situations: The workspace…
Read MoreCHILDREN’S ARTS AMOUNT TAX CREDIT
Are you aware that Children’s Arts Tax Credit is available for non-artistic activities? April 11, 2012 New to 2011 is the Children’s Arts Tax Credit (“CATC”), which allows parents to benefit from their child’s enrolment in artistic, academic and cultural programs. Similar to the Children’s Fitness credit, a parent can claim up to $500 per…
Read MoreAPPRENTICESHIP TAX CREDIT
Do you currently have, or are looking to hire an apprentice? Do you know there are tax credits available if you do? April 18, 2012 The federal and Ontario governments are currently offering employers of apprentices tax credits with respect to the apprentices’ wages. The federal tax credit is equal to 10% of the eligible…
Read MoreINVESTMENT EXPENSES
Are you aware that you can deduct expenses incurred to earn investment income? April 25, 2012 Most taxpayers are skeptical about deducting expenses. The Canada Revenue Agency has been adept at informing taxpayers that there are few, if any, expenses that can be directly deducted in computing income. While the ability to claim non-refundable tax…
Read MoreMOVING EXPENSES
Have you moved to start a new job or carry on your self-employed business? You may be able to claim moving expenses on your tax return! May 8, 2012 If you have moved to a new home to be employed or to carry on your self-employed business at a new location you can deduct eligible…
Read MoreMEDICAL BENEFITS
Have you been benefiting by redirecting a portion of your bonus to a health care spending account? July 9, 2012 Employer payments to a private health services plan (i.e. health insurance) for the benefit of an employee are generally not a taxable benefit. Where an employee was eligible to irrevocably elect to allocate a portion…
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