What does a Demand to File letter look like? A Demand to File letter, usually referred to simply as a Demand letter, is a request for a tax return from the Canada Revenue Agency (CRA). CRA sends out demand letters for returns that Have not been filed Are likely to have tax owing CRA doesn’t [...]
Changes to Canadian tax law As of June 20, 2024, psychotherapy/counselling therapy services rendered by psychotherapists and counselling therapists are exempt from the GST/HST. Medical services have always been exempt from GST/HST, and the scope of what falls under the umbrella of exempt health-related services has been expanding. The latest inductee: psychotherapy. What does the [...]
Can a joint-tenant qualify as a first-time homebuyer? Q: I'm a joint tenant in my current home, and I'm ready to buy my own place. Can I use the Home Buyers' Plan (HBP) or the Tax-Free First Home Savings Account (FHSA) as a first-time homebuyer? A: To take advantage of the HBP and/or FHSA, [...]
Understanding Your CRA Notice of Assessment Receiving a notice of assessment from the Canada Revenue Agency (CRA) can be an anxiety-inducing moment, especially if it states that you owe tax you believe you've already paid. However, before succumbing to panic, it's crucial to understand the nuances of the assessment process and how to effectively [...]
Q: My 87-year-old mom lives in a long term care home in Ottawa. I hired a wonderful woman as a companion to her, to supplement my weekly visits. Would her fees be tax deductible as Attendant Care? A: Possibly, if a few other factors are in play. Definition of Attendant Care The Canada Revenue Agency (CRA) [...]
Why does tax season have to come when the sun is shining and there's good stuff on TV? Reasons to always file on time, even if you can't afford to pay now.
As an immigrant to Canada, it's important to understand the Canadian income tax system and your tax obligations. Whether you're a permanent resident, a temporary worker, or a student, you'll probably need to file a tax return with the Canada Revenue Agency (CRA) each year. Do you need to file a Canadian income tax return? [...]
Bare trusts no longer exempt from filing Real estate investors who own properties under a Bare Trust arrangement need to be aware of CRA's new reporting rules. In prior years bare trusts were exempt from filing returns with Canada Revenue Agency (CRA). Going forward, any trust with a fiscal year end of December 31, 2023 [...]
As you may know, you don't pay tax in Canada on the sale of your principal residence. But what if the property was your principal residence, but was an investment property by the time you sold it? Q: I purchased my home 20 years ago for $120,000. Fifteen years later I converted that principal residence [...]
Q: I am considering selling my rental property, which I have owned and rented out for a year. But my realtor said I should own it for at least two years for CRA to consider the profit to be capital gain rather than income. What is this about? A: The issue is whether the sale [...]
