Tax Tips: Six Important Tips in Correcting Errors On Tax Returns

Tax season may be over but you may have forgotten to claim a lucrative tax deduction or credit, like medical expenses, moving expenses or the disability amount. First tip: don’t file a new return; simply adjust your prior filed return. But, what’s the deadline for making adjustments? For most provisions it’s ten years; however, to optimize your pension income splitting, it’s only three years. Here are three more anomalies: Claims for Capital Cost Allowance on a rental or business asset […]

Reporting Dividends? Check Out These Tax Tips

Dividends of taxable Canadian corporations enjoy preferred tax rates, but some complexities in reporting can plague unsuspecting filers. Here are some tips for last-minute filers: 1. What are dividends? Dividends are earned as a result of an investment by an individual in a corporation and are distributed after taxes have been paid on the earnings of the company. 2. How are they reported? The actual dividends received by shareholders are “grossed up” so the taxpayer reports an amount higher than […]

How to Claim Business Expenses Properly

Be sure to visit with a Tax Services Specialist to properly set up the accounts for the income and expenses you’ll be claiming in your small business. Your business expenditures, assuming you have a reasonable expectation of profit from a viable commercial activity, fall into six types: Current Capital Prepaid Restricted Not allowable Mixed use expenses Current Expenses: These are used up in the course of earning income from the business. Examples are office supplies, wages, rent and other overhead […]

May 2 Tax Deadline: Four Big Reasons to File On Time

April 30 falls on a Saturday this year, so midnight May 2 is the deadline for filing the T1 General Tax and Benefits Return. It’s important to comply with that date to avoid late-filing penalties if you owe CRA money on your personal taxes, and to avoid interest charges if you owe taxes on your proprietorship (although you have until June 15 to file in that case). But May 2 is an important filing deadline for three other reasons. First, […]

A Five-Step Process For Managing Tax-Efficient Wealth

As government budgets close one tax advantage after another, it pays to do some tax planning now as you complete your 2015 tax return. Tax time is a great time to prepare a financial assessment through a sound interview process with your advisors. That’s because it’s a great opportunity to review financial affairs of the family as a whole. Consider discussing with your advisors the five steps below, to develop a strategic process for planning a more tax-efficient wealth management […]

Budget 2016: What Previously Announced Tax Provisions Remain?

If you are confused by the numerous family tax changes over the past couple of years, you are probably not alone. Here is a summary of the tax preferences you enjoyed in 2015 that didn’t make the cut in the latest federal budget on March 22, 2016. They include: UCCB – Universal Child Care Benefit. In 2015, this benefit rose to $160/month for children under age 6, and a new benefit of $60/month for children 6-17 was introduced. However, that’s […]

Investors Breathe A Small Sign Of Relief, but Losers include Mutual Fund Holders, Small Businesses, Charities and Certain Families

The March 22, 2016 federal budget took Canadians into a new fiscal direction. After years of fiscal prudence, new deficit spending plans will bring our collective debt over $732 Billion by 2021 and in the meantime there are indications that revenues will grow more slowly despite the new spending: Income tax revenues are projected to increase by $6.9 billion or 5.1% to $142.7 Billion in 2015-2016 By 2020-2021 that number will be $177 billion, indicating a slower average annual growth […]

Six Tax Concepts for Newcomers To Canada

Tax filing time is confusing for most Canadians, but for newcomers it can be completely bewildering. If you have the opportunity to help with this most important financial document of the year for many families, including new immigrants, consider broaching the following six concepts as a conversation-starter in your role as financial educator. In Canada Taxpayers File as Individuals.  Understanding Canada’s “progressive tax system” (the more you earn, the more you pay) and its effects on family wealth provides for […]

Precise March 15 Instalments Lead to 5 Wealth Enhancers

It’s important that fragile investments stay intact as markets recover. For this reason, it makes absolutely no sense to overpay any personal income taxes in advance on the March 15 quarterly instalment remittance deadline. Astute tax and financial advisors will make sure their clients encroach on only the right amount of capital for these purposes, especially if they are retirees. Note that if the balance due on your personal income tax return is $3,000 or more for the last year […]

Save Receipts to Qualify for Home Accessibility Tax Credit

“I told you so. . . .” The four dreaded words that often apply at this time of the year, and that tax practitioners politely try to resist when their clients end up with higher taxes payable than they should, simply because their tracking of receipts is skimpy to non-existent. This is an easy problem to avoid and no tax practitioner can emphasize enough how critical it is for taxpayers to keep receipts for their expenses throughout the year. For […]