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TaxTips Aug 2019: Retirement fund; Director's liability; Reduce tax deductions; RRSP/RRIF w/h tax; Students; Cdn dividends no tax; Home Buyer Incentive; Capital cost allowance
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Important Dates

NetFile is available until January 24, 2020, for filing 2015 to 2018 personal tax returns. EFile is available for the same period, for filing 2015 to 2018 personal tax returns.

Canadian Financial & Income Tax Calculators

We have lots of calculators - re income tax, borrowing, investing, RRIF withdrawals, US estate tax for Canadians, CPP retirement pension calculator and more.

Government Benefits, Programs and Services

Links to information on benefits and services provided by the federal and provincial/territorial governments, for seniors, persons with disabilities, low-income, children, families, students and others.

Personal Tax

Life in the Tax Lane September 2019

This month's topics include: Director's personal liability in a Workers' Compensation case; TFSA overcontributions; Overdrawn shareholder loan to a non-arm's length person; Transfer of life insurance from a corporation; Represent a Client changes; and IRS compliance campaign re former participants in Offshore Voluntary Disclosure Program.

School's Starting Soon - Students and Income Tax

There are many tax issues for students and/or their parents, such as eligibility for tuition, education and student loan interest tax credits (some of which have been eliminated), private school tuition fees, deducting moving expenses, and childcare expenses.

Canadian Dividends - No Tax

See how much can be earned in Canadian dividends without attracting income tax, when the dividends are the only income earned.  Alternative minimum tax (AMT) kicks in when eligible dividends exceed $52,070.  Over $100,000 in eligible dividends can be earned in several provinces before attracting regular provincial income tax, but of course federal income tax and federal/provincial AMT will be payable.

First-Time Home Buyer Incentive (FTHBI)

Under this Incentive, Canada Mortgage and Housing Corporation ( CMHC) will fund up to 10% of a first-time home buyer's purchase via a shared-equity mortgage (SEM).  The Incentive amount is up to $40,000 (10%) for a new home or $20,000 (5%) for an existing home.

Financial & Estate Planning / Registered Plans / Investing

How Much Money Do You Need To Retire?

You should be thinking about this now, even if you are just starting out in your career.  This will be different for everyone, but we provide some guidance to help you figure things out.  We advise you to plan to live off your dividends once you retire, instead of drawing down your investments, if at all possible.

Reduce Income Tax Deductions Now for Current RRSP Contributions

If you have made your 2019 RRSP contributions already, you can complete a CRA form to get permission for your employer to deduct less income tax from you.  If you are self-employed, you may be able to reduce your instalments.

What Tax is Deducted from RRSP or RRIF Withdrawals?

The withholding tax rate depends on the amount withdrawn as well as other factors.  You may have to pay more tax or get a refund depending on your total taxable income when your tax return is filed.  When multiple lump-sum withdrawals are made, the withholding tax rate may be based on the total of those withdrawals in the year.

Business

Capital Cost Allowance

Capital cost allowance (CCA) is the depreciation that is allowed to be expensed for tax purposes for fixed assets, except land. Get information on rates, half-year rule, short fiscal year and tax incentives for clean energy equipment.

If you need tax or financial help, check our Directory for links to Accounting, Bookkeeping and Financial Planning organizations in Canada.  Canadian income tax is getting more complicated every year, and getting your tax return prepared or reviewed by a professional may save you money!

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