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Choosing the $500* Work-From-Home deduction vs self-employment business-use-of-home

* Limit was $400 for 2020, $500 for 2021 Covid-19 changed everything, including changes to taxes for the 2020 and later tax years. Now that Canada Revenue Agency (CRA) is offering a small Work-From-Home (WFH) deduction for salaried people, self-employed Canadians have questions. Specifically, people who have always deducted business-use-of-home (BUH) as part of self-employment [...]

All About CRA Matching

It’s a little-known fact that when CRA first receives an income tax return and sends the taxpayer a Notice of Assessment, they do little to no review of what is actually in that tax return. Unless your return has been selected for a pre-assessment review, for the most part CRA just goes along with whatever [...]

Why Do I Owe Income Tax?

It's a terrible experience: you go to your tax preparer with your hopes high, and you get handed an income tax bill. It's even worse when your income has dropped in the past year, or was modest or even low. How can you owe tax? The problem is that an income tax bill isn't necessarily [...]

How To File Your GST-HST Return From A Completed Worksheet

If you have a completed GST-HST worksheet you can easily file your GST-HST return, either by using the figures on the Worksheet and transfering them to a return, or by signing and dating the worksheet itself and mailing it to the Canada Revenue Agency. (If you're not sure what a GST-HST worksheet looks like, you [...]

How much GST or HST should I charge? – GST and HST rates by province

When you are registered to collect GST or HST and make a sale of goods or services to payer in another province, you must charge the rate of GST or HST according to the rate in the payer's province. For example, if you are a vendor based in Ontario and registered to collect HST, [...]

The tale of two brothers, one roof

When two siblings share an inheritance, their best intentions to redistribute the property can backfire and trigger unnecessarily high taxable capital gains. When their mother died, Troy and Karl were joint beneficiaries of her will and inherited the lakeside cottage she'd lived in for the past 30 years. Troy lives out of province and would [...]

By |December 12th, 2017|Tax Education, Two Minute Tax Tips|Comments Off on The tale of two brothers, one roof

Don’t contribute to your RRSP until you read this!

Contributing to an RRSP is always a great move, right? Not so fast. RRSPs reduce your taxes by sheltering income from tax when you contribute. You will pay the income tax later when you withdraw the funds, which is ideally when they’ve had a few years to grow (tax-free), and when you’re in a [...]

By |January 13th, 2017|Tax Education, Two Minute Tax Tips|Comments Off on Don’t contribute to your RRSP until you read this!

All About ‘Other Income’

Definition of 'Other Income' 'Other Income' is taxable income that has not been or should not be reported anywhere else on the return. Source: CRA website. How you choose to declare income can have short-term and long-term effects. Line 104 and Line 130 on your Canadian Income Tax Return are usually intended for 'Other Income' [...]

By |January 3rd, 2017|Tax Education|Comments Off on All About ‘Other Income’
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