November 2019
RRSP investing tricks
One of the limitations on making deductible contributions to RRSP is your “earned income” for the preceding taxation year. The calculation of your contribution limit for the current year begins with the lesser of the a fixed amount per CRA for the year and 18% of your earned income for the preceding calendar year. Unused RRSP room from previous years
Sole proprietor tax return tax return tips and deadline
You don’t need a separate or different tax return to report your business income; you report your worldwide total income on the T1 general income tax return.So if you have several different businesses, or employment income as well as business income, or investment or pension income for that matter, it all gets reported on the same tax return. Business losses
Claim all eligible medical expenses
Missed medical expenses are one of the most overlooked and forgotten tax breaks by individuals.Many people don’t add up their expenses because of the income-related requirement: only expenses that exceed the lesser of $2,171 or three percent of net income can be claimed.But what many don’t realize is that there’s a long list of expenses that qualify, so it may
If you’re emigrating from Canada, don’t collapse your RRSP too early
If you leave Canada and become a non-resident for tax purposes, it could benefit you to wait until you’re a non-resident before you collapse your RRSP and move the proceeds to wherever you’re moving. Canada puts a withholding tax of just 25 per cent on the proceeds of an RRSP for non-residents. But if you want to wind up your
Be sure to report all T-slips
Let’s say you file your return and later discover that you’ve failed to include a T-slip reporting income or a dividend payment. No problem, you think, because you know the slip’s issuer also sends the same information to the Canada Revenue Agency. You think it’s not necessary to give in the late slip to the Tax department, assuming that the
How to Avoid Audit Red Flags?
How to Avoid Audit Red Flags? There are many deductible expenses available to small-business owners, ranging from business-operating expenses to home-based business write-offs and automobile expenses. The capital asset deductions for assets belonging to the business, such as computers, automobiles, and furniture, may be depreciated at varying allowable rates. The bottom line is, you have to handle all deductions accurately
Come Clean with CRA
The Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct your inaccurate or incomplete information or disclose material they did not report during previous dealings with the CRA without penalty or prosecution. We can help you to file your VDP application. You may take advantage of this program by reporting unreported income, incorrect income or expenses, unfiled HST
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