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…

How much is refundable medical expense supplement for 2013?

The refundable medical expense supplement for 2013 is calculated as the lower of $1,142 and 25% of the total of non-refundable medical expense amount claimed at line 332 and disability supports deduction claimed at line 215. The available supplement is reduced by 5% of family net income in excess of $25,278. When family net income reaches $48,118, the supplement…

Asset

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.

Long-lived asset

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.

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;…

Deemed non-resident

If you are a factual resident or a deemed resident of Canada and are considered to be a resident of another country that has a tax treaty with Canada, you may be considered a deemed non-resident of Canada for income tax purposes. If you are a deemed non-resident, you must follow the same rules as a non-resident of Canada…

Adjusted cost base (ACB)

Adjusted cost base (ACB) usually means the cost of a property plus any expenses to acquire it. such as commissions and legal fees.