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”

Low-income people got tax audited 5 times more!

In US, a recent analysis by Syracuse University people making $25K less got tax audited 5 times more. Main reason is that they claimed Earned Income Tax Credit (EITC) which was expanded via the pandemic relief bill. It was said that there are errors in claiming too much credits. Still, that seems very outrageous especiallyContinue reading “Low-income people got tax audited 5 times more!”

A few considerations of TFSA

If someone’s household income is in high tax bracket. They might want to minimize the interest generated in the margin account because it is not tax sheltered. It might be better to put the securities with price appreciation such as growth stocks. One day when they need to sell them, they could transfer-in-kind into TFSAContinue reading “A few considerations of TFSA”

Should you file income tax returns with only overseas income?

Someone thought he doesn’t have to file personal income tax because the income is made overseas. However, he lives in Canada permanently. Perhaps just a quick and simple sanity check question. I asked whether he use the health care system here. Natually, he does. To be fair, should he also contribute to the government coffer?Continue reading “Should you file income tax returns with only overseas income?”

Pay more tax for better services?

Today is the day! For Toronto municipal election. The voter turnout would be quite low per media reports so very unfortunately. Perhaps some people think it is not important? Public transit is on top of my mind. Toronto is famous for its traffic congestion. Crumpling infrastructure is the theme of the developed world. In Toronto,Continue reading “Pay more tax for better services?”

Common mistakes on TFSA

The name TFSA – Tax Free Saving Account can be quite misleading or confusing. Some people think that it is the same as a regular bank saving account. Moreover, certain banks only offer TFSA account with such limited function. This further confirms their misunderstanding.  In fact, TFSA can be used to hold all kind ofContinue reading “Common mistakes on TFSA”

Recent changes on personal income tax

I found two key changes for 2021 tax year while working at a tax clinic. One is Climate Action Incentive, and the other is Ontario Trillium Benefit. Many people received around $300 refund last year for CAI- Climate Action Incentive. However, they might see less refund or no refund at all this year because CAIContinue reading “Recent changes on personal income tax”