By Liz O'Dowd on October 4, 2012 
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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}
By Liz O'Dowd on October 4, 2012 Leave a comment
Every business owner should be concerned about creditor proofing his assets. Here are several suggestions to consider: 1) Transfer assets out of the company: Place capital assets in a separate holding corporation so that subsequent legal claims that arise in… {Read more}
By Liz O'Dowd on October 4, 2012 Leave a comment
If you have a website or a blog and you charge for advertising, links, or reviews, you must report the income on your Canadian income tax returns. Send invoices to your clients and customers. If your invoices exceed $30,000 in… {Read more}
By Liz O'Dowd on September 7, 2012 Leave a comment
For all provinces and territories except Quebec, starting with the 2006 taxation year, scholarship, bursary and fellowship income is fully exempt from tax when the income is received in connection with a program for which the student will get an… {Read more}
By Liz O'Dowd on September 7, 2012 Leave a comment
The employee’s province or territory of employment depends on whether or not your employee is required to report for work at your place of business. If your employee lives in one province, but reports to your place of business in… {Read more}
By Liz O'Dowd on September 7, 2012 Leave a comment
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}
By Liz O'Dowd on September 4, 2012 Leave a comment
The Home Buyers’ Plan (HBP) allows first time home buyers to withdraw funds from there registered retirement savings plan (RRSPs) to buy or build a qualifying home (a qualifying home is a housing unit located in Canada, it includes existing… {Read more}
By Liz O'Dowd on September 4, 2012 Leave a comment
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}
By Liz O'Dowd on September 4, 2012 Leave a comment
CRA recently noted that where a proprietor purchased a Disability Income Policy, the premium is a non-deductible personal expense. But the receipt of the disability benefits is tax-free. If a corporation acquires a Policy for the employees, the premiums are… {Read more}
By Liz O'Dowd on September 4, 2012 Leave a comment
In a recent Technical Interpretation, CRA noted that an employer-provided meal allowance will not be taxable where the following conditions are met: It must be a reasonable amount; The allowance is received to cover expenses while travelling away from the… {Read more}