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Tips

You've earned it - Tax Credits
The Government of Canada has introduced a wide range of tax cuts to help you save on your taxes. Find out more about the tax savings and benefits that may be available, as well as about the Canada Revenue Agency's quick, easy, and secure electronic services. Click here to find out more.

Cashing in RRSPs
It is a legal requirement for your financial institution to withhold taxes on RRSPs you are cashing in. The withholding rates are 10% for $0-$4,999, 20% for $5,000-$14,999 and 30% for amounts over $15,000. Read more...

Dealing with the CRA
When the Canada Revenue Agency makes an inquiry or requests information the best strategy is to co-operate and communicate. Read more...

Home Office Restrictions
A self-employed individual and an employee can write-off a portion of their home expenses by way of a home office. However, there are a number of rules and restrictions you should be aware of. Read more...

Lease or Buy?
To lease or buy? That is the question. You have to consider (1) interest rates (2) future borrowing requirements (3) your cash flow situation and (4) your lifestyle. Read more...

Shareholder Woes
If you are a shareholder who takes regular draws from your Company you should be registered for payroll and remit monthly tax and Canada Pension Plan payments to the Canada Revenue Agency ("CRA"). The CRA is enforcing an Income Tax provision that has been in place for years. Read more...

Tax on Sale of Investment Property
If you sell an investment property it is likely that you will pay a maximum tax rate of 22% on any capital gains. However, there are situations where a capital gain will be deemed 'regular' income, which may attract a tax rate as high as 43.7% in British Columbia. Read more...

Tuition Fee Transfer
It may be possible to transfer tuition fees and education credits to a spouse, parent or grandparent of the student. The maximum amount is $5,000 per student and it can provide for some effective tax planning. Read more...

Writing off Business Assets
Can I expense the purchase of an asset whose useful life will extend beyond one year? Read more...

Year End Bonuses
It is possible for a company to take a tax deduction for unpaid management fees at year-end provided that the fees are paid to the manager or shareholder within 179 days from the year-end date. Read more...

 

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