FAQ

You should file a tax return regardless. If you are eighteen or older you need to file, to ensure that you receive your GST and the carbon tax credit. If you are a student, you need to record your education credits for the tuition you paid in the year,
Anytime income is earned a tax return should be filed. The low income means that there may be refunds of CPP deductions, EI or taxes they are entitled to. A review with a tax professional should make it easy to determine
RRSPs, medical expenses, donations to charities, and childcare expenses are the primary deductions most individuals will claim. You should consult a tax specialist as everyone�s situation is unique. There are additional expenses for very specific situations that specialists would know how to claim and what documents are needed,
Operational expenses such as the mortgage interest, property taxes and insurance on the property are the main expenses that are deductible against rental income. Repairs and maintenance are also deductible but need to be distinguished against property improvements or capital investment in the property which is not deductible and should be added to the adjusted cost base of the property. Other expenses might also be deductible, a tax specialist should be consulted to determine what those are.
It is an option to be considered. There are significant tax ramifications at the time of sale or disposition of the property. In the short term it can reduce the taxes you pay on the rental income. Consult a tax specialist to determine the best course of action and any tax implications.
This is not correct. When you move into your rental property and use it as your primary residence, you have changed the usage of the property and it is considered a deemed deposition of the property. Capital gains are triggered as of that tax year. Consult a tax professional before taking any actions and before taking hearsay advice.
Your filing deadline as a sole proprietor is the 15th of June. Be aware that your spouse or partner also share that filing deadline as a result. It must be pointed out that if you or your partner owe a tax balance, interest accrues from May 1st on any outstanding balance.
You should consult a tax professional and a lawyer to properly answer this question. For the majority, the reason to incorporate is based on two factors. Those factors are legal liability regarding the nature of the business and efficient tax savings. There are many other reasons to incorporate other than those mentioned. A review with a tax professional and a lawyer prior to deciding is essential.
There are many expenses that can be deducted from your income as a small business. It may vary from the type of business you are running and the nature of the expenses. Having a receipt for an expense is not enough, knowing how to notarize and attribute the expense for the business is essential. Consulting a tax specialist when preparing to make a claim for an expense would be prudent.
You are required to register a GST number when your gross sales have reached or exceeded $30,000 in any 12-month period. It must be noted that most believe that the 12-month period only applies to the calendar year (Jan � Dec), this is not the case. Be careful about choosing the filing period and frequency when registering your GST number.
How you take your income will be based on several factors such as the amount to be taken as income, deductions available to be deducted against that income and the impact those claims may have on taxes owed and credit worthiness. Another consideration is the nature of the corporation�s operations. If the company is considered a Personal Service Business, this will impact how income can be taken.
A Personal Service Business is a situation whereby an individual operating as a sub-contracted corporation performs duties exactly as if they were employees. i.e., The contracting company sets the times whereby work can be completed and performed, they use the contracting company�s equipment, a lack of autonomy, the contracting company is the sole source of income. This situation limits what can be deducted as expenses and how income will be taken out of the company.