$8K money left on the table!

People didn’t file their tax for many reasons. One could be homelessness or just hardship that is too much to bear.  Here is a real-life story. I call him Joe to conceal his identity. He has been experiencing homelessness in recent years. Now, he is living in a shelter. His caseworker booked an appointment withContinue reading “$8K money left on the table!”

Oh no, I missed something for my tax return!

I am sure the above issue happened to many of us before. When we think that we have been thorough, there is still something we might miss because tax can be complicated. We only do it once a year and we could forget what we did before. First issue is missing tax slips.  Financial institutionsContinue reading “Oh no, I missed something for my tax return!”

Oh my, the government websites!

I was helping someone to register GST/HST account online for her small business. When she clicks register, it just went back to the original webpage. She and me looked all around but just can’t find the page to register online. She had to call. The service Rep on the call was nice, but what aContinue reading “Oh my, the government websites!”

Spousal loan to split income?

It is still Valentine’s Day. Let’s continue the topic on split income. You might have heard about spousal loan as a split income strategy. Here is an article by Turbo Tax. One key thing to know is the attribution rule. For example, a higher income earner gift $1000 to his or her spouse. The interest,Continue reading “Spousal loan to split income?”

Sharing is loving – income split

Happy Valentine’s Day! It was said that money is one of the top 3 reasons for divorce. It is also tax season. Let’s talk about income split – a topic of money, relationship and tax! Sharing is loving especially when it comes to money. 😊 In many marriages or common-law relationships, the two spouses earnContinue reading “Sharing is loving – income split”

Capital loss and wash trades

Tax season is just around the corner. Some of us might have received the tax slips for our investment accounts. Naturally, we are thinking how to optimize the tax. An article mentioned something called “Tax loss harvesting” strategy. The names sounds very sophisticated. Good branding. 😉 Basically, it is to sell a security lower thanContinue reading “Capital loss and wash trades”

The RRSP first 60-day rule

Now it is so-called RRSP season because many of us have a habit to contribute to RRSP right before the March 1st deadline. Some also like to put their annual bonus towards RRSP which is usually paid out around this time. Since RRSP is a saving towards retirement that we can’t access now, it takesContinue reading “The RRSP first 60-day rule”

A call with CRA on a request to reduce tax deductions

Tax season is upon us.  Let’s talk about the request to reduce tax deduction that I was helping someone with. Here is how it works. We can fill out this form T1213 to indicate in advance all sorts of legitimate circumstances to reduce income tax deducted from our paycheque by our employers. RRSP contribution isContinue reading “A call with CRA on a request to reduce tax deductions”

An affordable business tax software

I have been researching for an affordable tax software for Canadian corporation tax return which is called T2. I went through each website of the T2 tax software certified by CRA – Canada revenue agency. There are around 20 of them. The one I am looking for is for simple tax return with most affordableContinue reading “An affordable business tax software”

Tax bill shock – capital gain distribution

Tax season is just around the corner. Some of us might have received a tax bill shock from capital gain distribution.   Let’s imagine this scenario. We are very careful and disciplined. We didn’t sell any securities in our investment margin accounts because we understand that it is taxable right away without the tax shelterContinue reading “Tax bill shock – capital gain distribution”