The Canada Revenue Agency (CRA) has taken a new position on what qualifies as a private health services plan (PHSP).
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…
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.
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…
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.
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 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…
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.
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.
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.