I`ve noticed a few websites have been writing that the RRSP deadline is March 1st. The Income Tax Act allows you to deduct RRSP contributions made in the first 60 days of the year following the tax year. Since 2012 is a leap year, the last day to contribute to your RRSP and claim the deduction on your 2011 income tax…
You started your business from scratch and built it into a successful enterprise. Perhaps you want to retire and spend time with your family or maybe you want to move on to something different. Either way the value built up in your business will result in a tax a tax bill. Luckily the Income Tax Act provides you the opportunity…
An estate freeze is not a mid-winter funeral! If you have a business, the estate freeze is a way to fix the value of your business or investments and transfer future growth to your children and beneficiaries. The result is that you can split income by shifting capital gains and dividends to other family members and minimize the taxes due at…
What happens when you start renting out your home? Understanding how the income tax act looks the situation can help you avoid an un-expected tax bill. When you sell your principal residence, you generally will not incur a capital gain because of the rule that exempts the principal residence from tax. However, converting all or a portion of your principal residence…
If you have lost your job or are retiring and will be receiving a severance payment, you may be able to shelter some of your severance from income tax. To be able to do this, the payment must qualify as a retiring allowance and depending on your circumstances, some may be direct transferred to an RRSP. What Is A Retiring Allowance?…
When you sell personal use property such as a car, jewelry, or furniture for more than you paid for it, you have to report and pay income tax on the net capital gain. The definition also includes real property, including the principal residence you own. The Income Tax Act provides a principal residence exemption for capital gains on the sale…
