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) [...]
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? [...]
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 [...]
What is double taxation? If you live in one country but earn income from a payer in another country, sometimes that income is taxed by the foreign government. When you file your taxes in your home country, you must declare that income, and it may trigger tax in your home country as well. This situation [...]
Is there a mistake on your taxes? Maybe you missed a tax slip or a receipt when you filed your return. Or maybe CRA made a change to your return based on a misunderstanding. However it happens, you can discover that there's a mistake on your taxes - an error in an income tax [...]
Little-known fact: 80% of Canadian income tax filing works on the honour system. During tax season, CRA receives an avalanche of income tax returns; far more than they could ever review in real time. Consequently, they send out most Notices of Assessment having done little-to-no review of what is actually in those tax returns. Unless [...]
It's simple to get a GST or HST number in Canada. You can do it over the phone, or you can do it online if you're registered for CRA's online My Business service. But no matter how you register, CRA is going to require you to provide some information and make decisions up front. You [...]
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 lower [...]
