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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 lower [...]

By |January 13th, 2023|Tax Education, Two Minute Tax Tips|Comments Off on Don’t contribute to your RRSP until you read this!

Charitable Donations and Tax – Three ways to maximize your tax credit

It is better to give than to receive, but what's even better is getting a tax credit from Canada Revenue Agency (CRA) for it. Here are three tax tips on how to make the most of your charitable donations on your Canadian income tax return. VIDEO: Charitable Giving and Tax in Canada - Three Things [...]

Voluntary Disclosure (VDP) Filing Can Reduce Penalties and Interest

So it's been a few years, you haven't filed your returns, and now you've decided to get honest about it. Good for you! You’ll feel great for having gotten this off your mind. But while we always recommend filing late returns, don't rush in blind if you owe tax. Consider taking advantage of CRA's [...]

Deducting Home Office Expenses for Self-employment

Self-employed people in Canada can take a home office deduction. It's one of the best things about being self-employed: you can take costs you were already incurring -- your residence costs -- and use them to reduce your taxes. Business-use-of-home The Canada Revenue Agency (CRA) calls the home office deduction business-use-of-home. As a self-employed person [...]

I registered for the GST-HST but don’t earn $30,000

Q: I’m a plumber earning less than $30,000 per year. In order to bid on jobs I found I needed to have a GST-HST number, so I registered two years ago. But since then, I haven’t earned over $30,000 per year. Do I still have to charge GST-HST? Do I have to file returns? A: [...]

Final Returns – Deemed Disposition When Someone Dies

When someone dies, their final tax return is subject to a number of special rules. The deemed disposition rule in particular can have a major impact on the final tax bill. What is a deemed disposition? It's a form of capital gain To understand deemed disposition it's first important to understand the basics of what [...]

I haven’t been charging GST-HST and now the Canada Revenue Agency wants money!

Q: Since I registered for the GST-HST I have still not earned over $30,000, so I haven’t charged GST-HST. Now the Canada Revenue Agency (CRA) has sent me a GST bill saying I owe them thousands of dollars in GST-HST, even though I haven’t earned enough income and I haven’t been charging GST-HST on what [...]

Registering for GST or HST when you don’t have to

You may be aware that if your self-employment earnings are less than $30,000 in four consecutive calendar quarters (i.e., in a year’s time) you don’t have to register for the GST or HST. However there are some situations where you might choose to register, even if you don’t have to. Registering for the GST-HST because [...]

What Are Input Tax Credits (ITCs)?

If you've registered to collect the goods and services or harmonized sales tax (GST-HST) in Canada, you may have come across the term input tax credit or its acronym, ITC, and wondered what it's all about. To understand input tax credits (ITCs) you need to understand the basics of the GST-HST system, which are simply: [...]

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