Tax Tips

Tax Tips

Tax Tip: Disability Tax Credit – Do You Qualify?

You may be surprised to know that the federal and provincial governments offer generous personal tax credits for: Persons with disabilities, or The person who supports another person (family member) with a disability. If you or the person you support qualifies, you may be entitled to claim these credits retroactive to the start of the disability (or 10 years back,…

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February 2, 2013
Read more about the article Tax Tip: Defer Capital Gains
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Business / Real Estate / Tax Tips

Tax Tip: Defer Capital Gains

When you sell certain types of property including shares, real estate, a business or farm for a gain you may be able to defer the tax on the capital gain for up to 5 years and in in certain circumstances, 10 years. The Income Tax Act allows you to defer a portion of your capital gain when you sell property but do…

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January 29, 2013
Read more about the article Tax Tip: Group Medical and Medical Expenses
Personal Finance / Tax Tips

Tax Tip: Group Medical and Medical Expenses

If you are a member of a group medical insurance plan and you pay all or a portion of the premium through payroll deductions, those premiums may qualify as medical expenses for the medical expense tax credit. Other commonly overlooked medical expenses include: Co-payments or non-reimbursed portions of medical expenses Dental bills Certain attendant care expenses for persons with disabilities…

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January 28, 2013
Read more about the article Tax Tip: Incorporate & Split Income
Tax Tips

Tax Tip: Incorporate & Split Income

Here is a proven strategy to reduce your overall tax bill by incorporating your business. The top personal tax rate in Ontario is 45% on income over $132,000 and 48% on income over $500,000. For small business corporation, the tax rate is 15.5% and the personal rate for dividends is quite attractive. By incorporating your business and issuing shares to yourself and…

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January 26, 2013
Read more about the article Taxable Employment Benefits
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Personal Finance / Tax Planning / Tax Tips

Taxable Employment Benefits

The Income Tax Act has broad and general rules requiring most fringe benefits to be included in net employment income. The government wants to discourage employers from substituting tax-free fringe benefits for actual cash compensation to avoid income tax. In the end, the value of a benefit of any kind must be added to your employment income. Examples of Taxable…

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November 29, 2010
Read more about the article Are Taxable Benefits Really A Benefit?
Personal Finance / Tax Planning / Tax Tips

Are Taxable Benefits Really A Benefit?

Many employers offer a range of benefits to their employees. The value of fringe benefits are considered taxable benefits and are included as income on your paycheque. This begs the question: Are fringe benefits really a benefit? It is possible to get the same benefits yourself for less? You need to know your marginal tax rate, how much benefits will cost you and…

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May 21, 2010