A RESP is a savings plan for post-secondary education which allows funds to accumulate on a tax-deferred basis up to certain limits. There is no annual limit for contributions. For each beneficiary the lifetime limit on contributions is $50,000. Although there is no tax deduction, the interest and income earned within the plan is sheltered, […]
On January 1, 2014, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 0.9%. The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2014.For 2014 the federal tax bracket thresholds are:
22% for taxable income above […]
Canada Revenue Agency (CRA) expects employers to complete Form T2200 for employees that have reasonable grounds to make expense claims against employment income. If there is some doubt, CRA will provide interpretive assistance.
There are several areas that are included in estate planning. Here is a brief list of some of them:
You should have a will that includes your desires and tax considerations.
You should consider steps to minimize probate fees (or Estate Administration Tax) on your death, if applicable.
You should have enough insurance to meet the needs of […]
Consider a Registered Education Savings Plan (RESP) for your children.
Set up a Tax Free Savings Account (TFSA).
Review your December income tax installment.
Make a low interest loan to your spouse.
Repay outstanding shareholder loans and pay interest on employee loans.
Contribute to your spouse’s or common-law partner’s RRSP to the extent of your RRSP deduction limit for 2013. […]
You can make use of the lifetime $750,000 capital gains deduction if you dispose of shares in a qualified small business corporation, a qualified farm property, or a qualified fishing property. If you have already claimed the $100,000 personal capital gain exemption (ended in 1994) then this reduces the available lifetime capital gains to $650,000. […]
You can use your 2013 capital losses to reduce your current year’s income taxes by applying such losses against your 2013 capital gains. You must however be careful of the superficial loss rules preventing you from claiming a capital loss on an identical asset that you reacquired 30 days before or after the sale date.
If […]
If you pay the following expenses by December 31, 2013 they will be eligible for the deductions of credits:
Childcare expenses
Deductible support payments
Charitable donations
Union and professional dues
Moving expenses
Political donations
Accounting fees
Medical expenses
Investment counsel fees
Interest paid on loans used to purchase investments
Tuition fees
Children’s Fitness Expenses
Children’s artistic, cultural, recreational or developmental fees
The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP).
Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18% of 2013 earned income to a maximum of $23,820. Earned income is […]