Tax Tips

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 Should You Claim CCA On Your Rental Property?
Business / Investing / Real Estate

Should You Claim CCA On Your Rental Property?

The Income Tax Act allows you to deduct certain expenses directly related to your rental property such as property taxes, interest, insurance, accounting fees, and advertising. While you can’t deduct the full cost of the property itself, you are permitted to claim an amount every year as “capital cost allowance” (CCA). CCA appears to be an attractive way to reduce their…

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June 6, 2012
Read more about the article The Income Splitting Rules
Tax Planning

The Income Splitting Rules

Accountants often call the income splitting rules attribution rules. The term attribution simply means to attribute income back to the original person and effectively stop any attempt to income split. Who Do The Income Splitting Rules Apply To? The rules that are designed to prevent income splitting apply when you attempt to shift income to any one of the following…

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February 12, 2012
Read more about the article Shareholder Loans and Your Private Corporation
Business / Corporations

Shareholder Loans and Your Private Corporation

If you own your private corporation and borrow money you should consider the income tax consequences. The Income Tax Act contains a series of rules that may have income tax consequences for the person receiving the loan from the company. In the context of this article, the term loan means any form of debt the shareholder or family member has to…

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February 11, 2012
Read more about the article Renting Your Home Can Be Taxing
Personal Finance / Real Estate

Renting Your Home Can Be Taxing

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…

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February 25, 2011