When a taxpayer has a spouse or common law partner and the combined donations are greater than $200, the donations for both spouses should usually be combined and claimed on one tax return. Check your tax return carefully in relation… {Read more}
Category: Tax Alerts
Tax-free savings account contribution rules
The basic rules relating to tax-free savings account include the following: Contributions can be made by Canadian residents aged 18 or over Up to $5,000 per year can be contributed, with unused contribution room being carried forward. The $5,000 annual… {Read more}
OTHER TAX PLANNING ISSUES
Consider a Registered Education Savings Plan (RESP) for your children. Set up a Tax Free Savings Account (TFSA). Review your December income tax installment. Make a low interest loan to your spouse. Repay outstanding shareholder loans and pay interest on… {Read more}
USE CAPITAL LOSSES
You can use your 2012 capital losses to reduce your current year’s income taxes by applying such losses against your 2012 capital gains. You must however be careful of the superficial loss rules preventing you from claiming a capital loss… {Read more}
ELIGIBLE DEDUCTIONS & CREDITS
If you pay the following expenses by December 31, 2012 they will be eligible for the deductions of credits: Childcare expenses Deductible support payments Charitable donations Union and professional dues Moving expenses Political donations Accounting fees Medical expenses Investment counsel… {Read more}
Spousal RRSPs and RRIFs Contribution Rules
Spousal RRSPs Canadian tax laws allow you to put funds into either your own RRSP or a spousal RRSP. If neither spouse will have a pension from their employment when they retire, then both spouses should try to have the… {Read more}
Old Age Security Pension Clawback
High income seniors must pay back all or a portion of their OAS if their annual income exceeds a certain amount. If 2012 net income before adjustments is greater than $69,562 ($67,668 for 2011) then you will have to repay… {Read more}
Business Investment Loss-Denied
In a Tax Court of Canada case, a mother had guaranteed the business loans for her son’s corporation. Unfortunately, the corporation failed and subsequently the mother paid off the loans. The mother claimed business investment losses for the amounts repaid…. {Read more}
Tax-Free Savings Accounts – Keep Accurate Records to Avoid Costly Excess Contributions
Your contribution room is determined at the beginning of each tax year. If you have $5,000 in contribution room, and make a $5,000 deposit to your TFSA, then you cannot make further contributions to your TFSA in the same tax… {Read more}
5 Top Ways to file your Taxes
Whether you are a student, a senior, an individual, or you’re filing for your family, the following information will help you get the most out of your income tax return. 1. Get the facts about filing electronically: Families, seniors, students…even… {Read more}