Tax Tips 21 Tax Tips #11 Moving Expenses Generally, you can claim eligible moving expenses during the year: - If you move 40+ kms closer to your new location of employment or school-You moved to work, begin business operations, or study at the new location Eligible moving expenses can include meals on the road, travel costs for all members of […]
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Tax Tips 21 Tax Tips #10 Tax Slip T4A Box 048 Fees For Services (includes Box 020 Self-Employed Commissions) If you work for a large organization and you receive employee profit sharing payments (EPSP), the Tax Slip (T4PS) that you receive from your employer, which is also reported to CRA will NOT be visible to your tax preparer, unless you […]
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Tax Tips 21 Tax Tips #9 Tax Slip T4A Box 048 Fees For Services (includes Box 020 Self-Employed Commissions) If you have a Tax Slip that shows Box 048 Fees For Services or Box 020 Self-Employed Commissions, then this is income that must be claimed as self-employed using the T2125 worksheet, that will allow you to also claim business expenses, […]
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Tax Tips 21 Tax Tips #8 Untaxed Tips (Paid in cash, or not on Tax Slip) If you earn cash tips or other gratuities, you are required to claim these amounts as income on your tax return. Many people think you can “Just claim 10% of your paycheck” as a standard for tips, but it’s actually a red flag for […]
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Tax Tips 21 Tax Tips #7 Winner Winner Chicken Dinner: Lottery & Gambling Similar to cash gifts, insurance, and legal judgment payment, windfalls, and inheritances received, lottery winnings and most gambling winnings in Canada are not considered income and do not need to be reported on tax returns. However, gambling activities might be considered business activities by the CRA and […]
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Tax Tips 21 Tax Tips #6 Volunteering – Volunteer Firefighters and Search & Rescue Volunteers Volunteer Firefighters and Search and Rescue Volunteers are allowed to claim an income tax credit of $3,000 for either VFA or SRVA (not both), if you volunteered a minimum of 200 hours during the tax year. For more details and information, Please Click the CRA […]
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Tax Tips 21 Tax Tips #5 Rental Properties: Current Vs. Capital Expense Claims With rental properties it's really easy to mistakenly claim all your expenses in a single tax return year, due to misunderstanding the difference between Current vs. Capital expense claims. Current year expense claims on rental properties would include any expenses associated with getting the rental units ready […]
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Tax Tips 21 Tax Tips #4 Foreign Property Form T1135 Holding foreign property in the tax year with a total cost over $100,000 must be reported on form T1135, due on the same date as your tax return is due. The penalties for late reporting are $25/day, up to $2500 max. Includes - funds or intangible property (patents, copyrights, etc.) […]
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Tax Tips 21 Tax Tips #3 NFT & Crypto NFTs & Crypto earnings must be reported on tax returns although, like regular investment properties, they are taxed only on profits (or losses), not on initial investment amounts, or the qualifying expenses associated with carrying and managing that investment. Note that you cannot pay amounts due to CRA in cryptocurrency, so […]
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Tax Tips 21 Tax Tips #2 Capital Gains Capital gains is anytime that you make taxable income or have a loss of taxable income, from selling items owned by you or your business, or disposing of financial investment products. The taxable amount of income from Capital Gains is 50% of the income (capital gain), or you can claim 50% of […]
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