Tax Deductions for Working at Home

The End of the Office Era? Keep Good Records

Is the office era over? For many office workers, working from home became the new normal this spring. As such, some may be wondering if they are able to claim a tax deduction for home office expenses.
The Canada Revenue Agency (CRA) currently allows for a deduction in instances in which one of the following conditions is met:

The workspace is where you mainly do your work (more than 50 per cent of the time); or
You use the workspace only to […]

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Tax Planning is a Year-Round Exercise

Saving Tax is a Year-Round Exercise

Spring is the time when taxes are top of mind as personal income tax returns are due. Did you take action to reduce your tax bill in 2019? Perhaps you can do better this year. Here are four ways to help minimize payables to the Canada Revenue Agency (CRA):

“Reduce” Your Refund — If you receive a tax refund from the CRA on a regular basis, this shouldn’t be a cause for celebration. You’re effectively providing an interest-free loan to […]

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RRSP withdrawal

Don’t Make this Costly Mistake! Be Sure to Declare RRSP Withdrawals as Taxable Income

RRSP withdrawals must be part of your tax planning strategy. It is extremely important to understand the implications of Registered Retirement Savings Plan (RRSP) withdrawals on your taxable income in the year you make the withdrawal.
Below is a well written article that highlights the implications of RRSP withdrawals, and provides a good understanding of the tax system. Remember, seeking professional tax advice is always a prudent strategy.

Running afoul of the CRA on RRSP withdrawals can be a costly mistake
By […]

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Pension Income Splitting: Can It Make a Difference?

Tax season is here! If you have eligible pension income, there may be an opportunity to split income with a spouse/common-law partner. But just how much of an impact can this make?  
For tax purposes, up to 50 percent of eligible pension income can be split with a spouse.
Eligible pension income is determined by the recipient’s age and the nature of the income. In general, under age 65, it includes amounts received from a registered pension plan.* Over age 65, it […]

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It can be Taxing to be a Snowbird

With the days growing longer and nights warmer, it may be easy to forget the polar vortex that froze many parts of Canada this winter. For some, the cold prompted an escape to warmer climates down south. If you are a “snowbird” — spending considerable amounts of time in the U.S. — you need to be aware of U.S. income tax implications.
Even if you have no U.S. tax to pay, you may be subject to various U.S. tax filing […]

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Dispelling Myths about RRSPs

Participation rates for the RRSP have been declining over recent years. In fact, some Canadians believe there is “no point” in investing in the RRSP because of the taxes due in retirement. But the RRSP can provide a substantial tax advantage. Let’s look at a couple of the myths:

Myth: There is no point in investing in an RRSP.  You pay all the savings back in taxes when you retire.

While you do pay tax on RRSP withdrawals, don’t forget […]

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Business Owners: Tips for Year End Tax-Planning

Is it too early to think about year end? As a business owner, if you are thinking about tax-planning strategies, not at all. Now is the time to take steps in order to help minimize 2018 corporate taxes and plan ahead for 2019. Here are some helpful tips to review with your professional advisor: 
1. Consider the New Passive Income and Refundable Dividend Rules

For taxation years starting after 2018, certain passive income earned in the company, and associated companies, in […]

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The Positives (and Perils!) of Joint Ownership

(NOTE: not applicable to Québec residents)
Joint ownership of assets has been growing in popularity with spouses, and now more frequently between parents and children. While there may be benefits, be aware of the potential pitfalls prior to transferring assets into joint ownership.
Joint ownership occurs when an asset is owned by more than one person. Generally, there are two forms of joint ownership:

joint tenancy (with the right to survivorship)—an arrangement in which the ownership of the asset passes directly to […]

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Tax Savings: Use Capital Losses to Offset Capital Gains

Plan Ahead Before Year End
Given the extended bull market, some investors may be considering realizing gains to rebalance their portfolios. As capital gains are subject to tax, one of the more common ways to offset this tax is to use available capital losses. Here is a reminder on how losses may be an opportunity from a tax perspective.
In general, when you sell an investment you must calculate the gain or loss, which is the difference between the proceeds from […]

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RRSP or TFSA Contribution, What’s Best?

Is an RRSP or TFSA Contribution Better?
The answer to the question lies in the status of your personal tax situation, and the amount of disposable income you have.
Quite simply, if you have more than $38,000 per year in earned income and are under age 71, then a RRSP contribution still makes sense from a tax deduction point of view. Your strategy in a RRSP should be to make contributions at a tax rate of at least 10% higher than […]

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