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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
How to Claim Dental Expenses for Deduction 2021
We all love a nice smile. It’s the facade of our personality, and that’s why teeth are so important. But dental care can be expensive. Luckily for Canadians, most dental expenses are tax deductible, including orthodontics. As a non-refundable tax credit, the medical expense tax credit can reduce any income tax you may owe to the CRA. In general,
Reporting Foreign Income on T2209 Form
If you are a Canadian resident and make foreign income, you are subject to tax duty to the CRA. Wait, but I’ve already been taxed by the country where the income is made! How is it fair?…as some of you would ask. Relax, reporting your foreign income to the CRA doesn’t mean double taxation. Rather, it is to inform the
A LOSS OF TODAY IS A GAIN FOR TOMORROW: HOW TO CARRY FORWARD CAPITAL LOSSES TO DEDUCT FUTURE GAINS
While capital gains are subject to tax, obviously, capital losses are deductible by the same token. But do you know that with some caveats, you can carry your capital losses forward to offset taxes on capital gains in the future? One step at a time, let’s go through what counts as a capital loss, and how you can benefit from
What You Need to Know About Income Tax as an Real Estate Agent
The real estate market is booming, and there is no better time than now to become a registered real estate agent. As you rake in cash from selling and purchasing real estate properties for your clients, however, you should also heed your own income tax. For your convenience, we have piled up everything you need to know about your
What You Need to Know about Audits as An Self-employed person
To ensure compliance with the Canadian tax legislation as to clamp down attempts at tax evasions, the CRA reviews businesses and individuals for risk assessments every year after the tax season. In most cases for business owners, the review is informal, assessing only parts of your business, such as HST, and requires you to submit certain documents online via the
How Much You Can Claim for Carbon Tax Rebate 2021
Canadian government introduced the Climate Action Incentive in 2019, aiming to curb nationwide carbon pollution. It is a payment to individuals residing in Alberta, New Brunswick, Saskatchewan, Manitoba, and of course, our lovely Ontario. What is the Climate Action Revenue Incentive Program? Residents of the aforementioned provinces will receive a tax credit called the “Climate Action Incentive”, otherwise known
What You Need to Know about Your Tax Returns After Retirement 2021
Have you turned 65? If so, you might want to look into some of the changes concerning your income tax and benefits announced by the CRA last week. 65 is the official retirement age in Canada. Since the day you turn 65, you will be eligible for many cash benefits such as a pension, or retirement savings. In addition,
Start-up cost deduction
Small businesses play a pivotal role in the Canadian economy. To encourage entrepreneurship, the CRA has implemented a bevy of tax incentives that allow small business owners to deduct a number of start-up costs as business expenses. We have listed all the frequently asked questions regarding start-up cost deduction to help you sail through this tax season. Buckle up and
Tightening the grip: the CRA is scouring social media accounts as platform economy booms
The economy has evolved as technology advances, so too, should the CRA innovate its auditing and verification techniques, argued by National Post. In less than a decade, the number of Canadians working in the platform economy has increased by ten folds. Given these relatively new sources of income, the CRA breaks down the platform economy into the following categories: The
Reporting Cryptocurrencies in Your 2021 Tax Returns
Do you believe that the world will become freer? Do you envision a future where the concept of virtual currencies will eventually zap all such constructs as nations or governments? If you bet on a civilization more decentralized as it advances, you probably have already got your hands on the mining business. That said, between that which is and that
Canadian Federal Dividend Tax Credit
If you’re a shareholder of a Canadian corporation, you will receive a T5, Statement of Investment, which documents your dividend income. If you’re an employee entitled to the company’s shares, your dividend income will be on T4PS, Statement of Employee Profit-sharing Plan Allocations & Payments. Either way, you need to report your dividend income and claim commensurate credits for