The Canada Revenue Agency (CRA) has taken a new position on what qualifies as a private health services plan (PHSP).
What is pension income splitting?
Pension income splitting is one of the tax breaks for retired couples. It allows a spouse to transfer up to 50% of the their eligible pension income to their spouse for tax purpose. No funds are actually transferred when using pension income splitting. It is just a way to reduce some pension income from one…
Tax issues on 2015 election campaign
Here the four main parties’ record and pledges about taxes as the 2015 election campaign begins: Family tax cut Conservatives: introduced the Family tax cut credit that allows couples with children under age 18 to split up to $50,000 of income; caps non-refundable benefit at $2,000.
How the tax-free savings account (TFSA) works?
Here is a overview of how the tax-free savings account (TFSA) works: All Canadian residents, aged 18 or older, can contribute to a TFSA. Investment income earned in a TFSA is tax-free. Withdrawals from a TFSA are tax-free. Contributions into the TFSA are not tax-deductible. A wide range of investment options such Guaranteed Investment Certificates (GICs), mutual…
How are non-residents taxed differently than residents of Canada?
Under the Canadian income tax system, your liability for income tax is based on your status as a resident or a non-resident of Canada. If you are a resident of Canada during a tax year, you are subject to Canadian income tax on your worldwide income form all sources both inside and outside of Canada.
What expenses you can deduct from rental income
You can deduct any reasonable expenses you incur to earn rental income. The following is a list of expenses that are deductible:
Debits and credits
Debits and credits are the backbone of double-entry accounting system. In double-entry accounting, a company’s assets are equal to its liabilities plus owner’s equity. This is known as the accounting equation (Assets = Liabilities + Equity). Each transaction has to be recorded in at least two accounts and the sum of all debits must equal…
Can I claim travel expenses for medical expense credit?
You travel expenses may be qualified for medical expense tax credit if you have to travel at least 40 kilometers (one way) from your home to obtain medical services. You can claim the public transportation expenses you paid, such as taxis, bus, or train, or vehicle expenses where public transportation is not readily available.
In which taxation year can I claim the HBTC?
You can claim the first-time home buyers’ tax credit (HBTC) in the taxation year in which the qualifying home is acquired. Q: Do I have to register the acquisition of the home under the applicable land registration system? A: Yes. Your interest in the home must be registered in accordance with the land registration system applicable to…
What is family tax cut?
Family Tax Cut is a non-refundable tax credit available to eligible couples with children under the age of 18. The credit is calculated based on the net reduction to the couple’s combined federal taxes if up to $50,000 in taxable income was transferred from the higher income earner to his or her spouse or common-law partner. The…