Personal Tax Tag

2020 Tax season just started. Individual income tax and benefits returns are now open for e-filing. A checklist is compiled to help you preparing all the documents for your tax appointment. Please do not forget to ask your employer T2200 or T2200s in order to claim work from home expenses for 2020. CRA has issued T4As for different covid-19 related assistance payments. If you are running an...

Have you recently received a contract offer from a business that has asked you to incorporate yourself? By the way, this is very trendy in the IT and transportation industry! We receive a couple of requests every day for such incorporations. Most of the time, because the “employer” (yes, the word used by these people) requires them to incorporate! Incorporating a business in...

A lot of people have claimed CERB for the full 28 weeks period, totalling up to $14,000. Canada Revenue Agency (CRA) has issued letters to the taxpayers who they think might not have been eligible. The confusion came because the CRA did not mention the word “Net” while explaining the self-employment for CERB purposes. Self-employment income is always net when reporting on the...

The year 2020 is approaching an end! This is the time of the year when you should not forget important tax planning to best optimize your 2020 income taxes in Canada. We have compiled a brief list for the end of year tax planning for individuals in 2020. Income Tax Effects of COVID-19 Benefits Received in 2020 Many individuals have received support from the government during the pandemic. The...

Property flipping is an increasingly common practice to buy a property and then reselling it for a quick profit. Property flipping also includes assignment sales a.k.a. shadow flipping. Shadow flipping is the sale of a property before taking possession, mostly in cases of new constructions with builders. Property flipping is a key area of interest for the Canada Revenue Agency (CRA)...

Principal residence exemption allows a taxpayer to eliminate capital gains on the disposition (or deemed disposition)  of his/her principal residence in Canada. This post is meant for general information purposes. You can find below a summarised version of different tax rules applicable to you if you have sold your principal residence, converted your principal residence to income-generating...

How can I lower my taxes if I am an actor or a person employed in the entertainment industry? This post outlines income tax returns for actors in Canada who are also residents of Canada. Rules are different for a non-resident actor in Canada and can be found here. Actors with Employment Income If you are an actor employed in the entertainment industry, you will generally get a T4 from your...

Did you forget to include income in your tax return or did not report it at all? You may have underreported your income or missed to report foreign assets, you are liable for the interest and penalties. If there is an intent to deliberately misreport your income and assets, there are additional penalties and even possible legal action including criminal prosecution. What is CRA Voluntary...

COVID-19 is spreading its grasp all over the world. Like other governments, the Canadian government has also stepped in to check the adverse impact of the disease. The government came up with the Canada Emergency Response Benefit (CERB) to help business owners, employees, and self-employed get much-needed financial relief. The program combines the two other previously announced benefits, the...

Rental income earned by a corporation is considered as property income – investment income. Active business income of Canadian controlled private corporations (CCPC) is subject to preferential tax treatment due to the small business deduction. Earning investment income in a CCPC has tax effects since it affects small business deduction. Property income which is an investment income in...