Did you incur legal fees in order to collect money owed to you for severance, pension benefits or a retiring allowance? You may claim those expenses as Other Deductions on the tax return. But there are a few catches. First, those expenses must not be reimbursed to the employee and, if they are, the amount …
Are Legal Fees Paid To Collect Severance Tax Deductible? Read More »
Whenever possible, avoid adding a large lump sum to your taxable income in one tax year. This can be especially problematic when a severance package or termination payment on retirement is received. A better strategy is to arrange to take the money over two tax years; for example, consider taking part in December and part …
Avoid Tax on Lump Sums on Retirement or Termination Read More »
The Canadian real estate market is active, particularly in some major Canadian cities like Vancouver and Toronto. Questions have been raised about what federal tax obligations the buyers and sellers of real estate in Canada must meet, and how the Canada Revenue Agency (CRA) ensures tax compliance on these transactions. This fact sheet is intended …
What are your federal tax obligations when buying and selling property in Canada? Read More »
Did you know? The Canada Revenue Agency (CRA) is redesigning its external correspondence, including the PD7A, Statement of Account for Current Source Deductions for businesses, following an extensive evaluation completed in the fall of 2014. Focusing on how the notices are structured, designed, formatted, and written, the CRA has made changes to make the information …
The deadline to file your income tax and benefit return is fast approaching. Most Canadian income tax and benefit returns for 2015 are due on April 30, 2016. However, as this date is a Saturday, the Canada Revenue Agency (CRA) will consider your return as filed on time and your payment to be made on …
Posted: April 19, 2016 By: Evelyn Jacks Posted in: Breaking News, Current Issue Top 15 List of types of income you should not report: TFSA withdrawals (neither income nor capital is taxable) Inheritance or gifts Life insurance policy benefits Lottery winnings Strike pay received from unions MLA (Member of the Legislative Assembly) and Municipal Officers Expense Allowances …
Don’t Report These Top Fifteen: Exempt Income Sources Read More »
Did you know? Most Canadian income tax and benefit returns for 2015 are due on April 30, 2016. However, as this date is a Saturday, the Canada Revenue Agency (CRA) will consider your return as filed on time and your payment to be made on time if the CRA receives your submission or it is …
The Government of Canada is switching to direct deposit for all payments that it issues. It is proposed that CRA will not longer issue cheques after April 2016. While there is a bit of “wiggle” room, we recommend that you get signed up in order to avoid delays in receiving funds from CRA. If you …
Employees who earn their living negotiating contracts for their employers or selling on commission may claim certain itemized sales expenses, income tax preparation costs, legal fees incurred to defend charges incurred in the normal course of business, as well as auto and travel expenses. These claims are allowed only if salespeople are required to pay …
Tax Tips: What Expenses Can Commission Salespeople Claim? Read More »
Posted: March 01, 2016 By: Evelyn Jacks Posted in: Breaking News, Current Issue The rules for claiming automobile expenses are similar for both employed and self-employed people, and they are also among the most frequently audited. Taxpayers will want to keep proper documentation and make the claims correctly. Automotive expenses can be deducted only if …