If you incur out-of-pocket work-related expenses as employee or partner, you can deduct the expenses on your income tax return. In addition to the deduction, you may also be eligible to claim a GST/HST (Goods and Services Tax and Harmonized Sales Tax) rebate on many of the same expenses. The GST/HST rebate is often overlooked.
Month: November 2014
21-year deemed disposition rule
21-year deemed disposition rule generally deems trusts to have disposed of and reacquired their trust property every 21 years at their fair market values. The trusts are subject to income taxes on accrued capital gains, income, or recapture.
An asset is an economic resources owned by a business that is expected to be of benefit to the business in the future. Cash, equipment, furniture, land, building, copyright, copyrights, goodwill are examples. The most basic tool of the accountant is the accounting equation, e.g. Assets = Liabilities + Owner’s equity, the mathematical structure of the balance sheet.
A long-live asset is an asset that is expected to provide economic benefits over a future period of time, typically greater than one year. It is also referred to non-current or long-term asset. In general terms, it is “long-lived” because it is expected to contribute to earnings beyond current current year or operating period.
How a non-resident is taxed differently than a resident of Canada?
Under the Canadian income tax system, you liability for income tax is based on your status as a resident or non-resident of Canada for income tax purpose.
Accounting equation with examples
In a double-entry system, for every debit entry there must be a credit entry and vice versa. This leads us to the basic accounting equation: Assets = Liabilities + Owners’ Equity The above equation shows how assets are financed: either by borrowing money from someone (liabilities) or by paying your own money (owner’s equity).
What types of income are eligible for section 217 election?
The section 217 election applies to the following types of Canadian-source income: old age security pension Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits; most superannuation and pension benefits; most registered retirement savings plan (RRSP) payments; most pooled registered pension plan payments; most registered retirement income fund (RRIF) payments; death benefits; employment insurance benefits; certain retiring allowance;…
What is a section 217 election?
You have left Canada and you are happy to be considered a non-resident of Canada for tax purpose. However, you may be still paying taxes if you earn income from Canada. Canadian payers are required to withhold non-resident tax on certain types of income they pay to non-residents, including pension income. Depending on the treaty…
How to deal with your Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) balance when you emigrate?
You might withdraw funds under the Home Buyers’ Plan (HBP) to buy or build a home or withdraw funds under Lifelong Learning Plan (LLP) to attend university or college. When you emigrate from Canada and become a non-resident, you have to repay the balance of the funds you withdrew.