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 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…

Residential ties

The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Capital loss

You have a capital loss when you sell, or are considered to have sold, a capital property for less than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property. Save on taxes from business losses

Capital gain

You have a capital gain when you sell, or are considered to have sold, a capital property for more than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property. What percentage of capital gains is taxable? Tax on interest, dividends, and capital gains Certificate of compliance is…

How does a property qualify to be your principle residence?

A property must meet all of the following four conditions to qualify as your principal residence for any year: it is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit…