No matter who you are, when it comes to tax time you will try to save hold onto as much of your hard earned money as you can. You'll want to choose your accountant wisely to ensure you hire the right one. Tax evasion, knowingly under reporting income or faking deductions is illegal. Tax avoidance can be [...]

The Income Tax Act allows tax deductions on expenditures employees incur for their work and are not reimbursed by the company that they work for. If you want to deduct home office expenses you need to meet the criteria required to do so. This includes a form T2200 signed by the company you work for. [...]

Contributing to your Registered Retirement Savings Plan can pay you back with a nice tax credit, and the deadline for contributions is March 2. However, be aware that these contributions might be handled differently depending on your specific tax situation. Key is your total taxable income, which can be used in conjunction with an online RRSP [...]

Many Canadians can be confused by the differences between a RRSP, or Registered Retirement Savings Plan, and a TFSA, or Tax-Free Savings Account. For starters, a RRSP merely defers taxes on the funds saved in the account, while funds saved in a TFSA are not taxed. Those funds you save in a RRSP also lower [...]

If you are self-employed or run a side hustle for extra income, you need to know what taxes are owed to avoid any penalties or audits. You need to keep very detailed records and file on time. If you use equipment for personal as well as business use, you need to track your usage. Income [...]

TOSI (tax on split income) rules aren't easy to comprehend. A typical TOSI case would be when a business-owner splits income by paying corporation dividends to family-member shareholders. There are instances in which this tax can be legally avoided, such as when under 10 percent of a corporation’s income is derived from a related business. [...]

A recent Tax Court case demonstrates the costliness of over-contributing to a TFSA. An Ontario taxpayer who owns a roofing company inadvertently deposited $40,000 into a TFSA account instead of his regular chequing account. He was then punished with over $2,000 in penalties. The man had made smaller over-contribution previously receiving a warning letter from [...]

A question is raised by a concerned taxpayer who declared rental payments as income as well as capital gains on a condo that was sold while his friends who invested with him plan not to. If you own a residence and don't live there, you need to report any money made on renting as well [...]

Alberta's average annual contribution increased by five per cent this year. Albertans hold an average of $28,551 in their TFSA. Canadians are choosing to grow their contributions more often. Alberta residents are more likely to put funds in their investment accounts once a quarter. About half of Canadians save TSFAs for retirement. TFSA contribution is [...]

A taxpayer who fought the CRA in court over just a little more than $13,000 finally won his case but the story is a cautionary tale. He sold a condo that he never lived in, the CRA assessed a tax on the profits as well as applied negligence penalties. Luckily, he was able to prove that [...]