Have You Received a Letter from the CRA Regarding Business or Employment Expenses?
Have You Received a Letter from the CRA Regarding Business or Employment Expenses? Are you wondering why you received this letter and what it means? If so, you are not alone. In 2010, the Canada Revenue Agency (“CRA”) began a letter campaign to inform individuals about certain expenses they are deducting. For instance, one of…
What are Foreign Reporting Requirements for Canadian Taxpayers?
If you are a Canadian taxpayer including individual, corporation or trust, you are required to report any specified foreign property owned during the tax year if the cost base of all foreign property exceeds $100,000 at any point during the year, along with the income earned during the year from that property[i]. Such property includes…
Are you getting the full benefit from the new enhanced UCCB?
Effective January 1, 2015, the Universal Child Care benefit (“UCCB”) for children under the age of 6 increased from $100 to $160 a month, up to a maximum of $1,920 per year. Furthermore, there is a new benefit of $60 a month for children between the ages of 6 and 17, up to $720 per…
Lower Tax Rates for Self Storages Businesses May Be On the Way!!
Currently, Canadian-owned private corporations are entitled to a preferential tax rate of 15.5% on the first $500,000 of qualifying income from ‘active’ business income from a business carried on in Canada (subject to certain specific rules.) However, self-storage businesses and campgrounds have been determined to be “specified investment businesses”, which is generally a business whose…
Warning – Could Your TFSA be Taxed?
Since their inception in the 2008 budget, Tax-Free Savings Accounts (TFSA) have become extremely popular investment vehicles as no income taxes are paid on the income earned by the investments within these funds. However, in certain circumstances that may be challenged by the CRA. In particular, Income Tax Act states that if a “business” is carried…