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Disposition of Capital Property

  What tax rules apply when disposing of a capital property? To answer the question, we should first address what is considered a capital property as per the CRA. In Canada, common types of capital property include cottages, buildings, land, equipment to operate businesses, and securities such as bonds or stocks. In general, capital property consists of depreciable property –

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What to Do If You Haven’t Received Your Tax Refund

  Many Canadians expect their tax refund deposit directly to their bank account within a month after they file their tax returns. However, this doesn’t mean that CRA is held accountable for sending you the money. Here is what you need to do when you miss the expected payment.  There are several reasons that the CRA may withhold some or

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Tax Credits and Obligations for Canadians Studying Abroad 2021

While Canada welcomes tens of thousands international students whose tuition fees contribute to the national revenues, each year, many Canadians students opt for studying abroad. If you are among the Canadian students who have registered at an overseas institution, you may be subject to additional requirements when filing your taxes in order to qualify for a variety of credits and

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How to Deduct Capital Gains 2021

Financial gains and taxes run in tandem, and capital gains make no exception. It is axiomatic to Canadians that 50% of the total capital gains will be added to your personal income for tax purposes. That said, gains from disposing qualified assets can be exempted.   Eligible Gains for Exemption  Applying the Lifetime Capital Gain Exemption, you may be eligible

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Guides to Prepare for Retirement 2021

If you are over a certain age and have income over a threshold, you may qualify for claiming the Age Amount. While it cannot amount to any refund, it is a non-refundable tax credit to reduce any income tax over retirement age and is transferable between spouses.   Requirements: To qualify for claiming the Age Amount, you must have turned

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The Impacts of Changes in the 2021 Federal Budgets on Your Benefits

Since the beginning of the pandemic, the federal government of Canada has rolled out a string of emergency benefits, aiming to buffer some financial impacts on Canadians who have taken the hardest hit. While some programs have drawn to a close, such as CERB, others are extended to fend off the malaise of unemployment and a pending recession. The 2021

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How to Enter Foreign Income (US) on Your Canadian Tax Return

If you are a Canadian resident – in general, anyone who has significant social bonds with Canada, or has resided in Canada for more than 183 days in the last tax year is considered a Canadian resident – you need to declare any foreign income you may have earned over the same period. That said, you will not be double-taxed

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How to Deduct Mileage as a Self-employed Person?

In a blustery late afternoon, when the day darkened with angry flurries sweeping the streets, a farmer, a fisherman, and a gonzo reporter all died in a car crash on the DVP. They levitated from their dead bodies and assembled at the golden gate of heaven, waiting for their final judgment. The wait was long, and the three got bored.

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Available Tax Credits for Small Business Owners 2021

Salute to every small business owner who has pulled through this far. Indeed, owning a business in a time of pandemic can be daunting. But with a silver lining, a few incentives have come to your aid, including deductible tax credits. It is no secret that any expenses you have incurred for running or expanding your business are deductible with

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How to Make the Most of Your Rental Property Expenses

People invest in real properties in hope that they would rake in cash in the long run. Unfortunately, however, rents collected by landlords hardly keep up with the high expenses their rental properties ensue. That said, a lot of such expenses on rental properties as home or mortgage insurance are fully deductible, and as their owners, you should claim them

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