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TaxTips Jan 2020: Investment returns; Tax returns; Joint ownership problems; Starting a business; Vehicles & Tax; RRSP/RRIF w/d calculator; and more!
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Follow the underlined links below to learn more about each topic.
 
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New TaxTips.ca Content as it Happens

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Important Dates

NetFile is available starting Monday, February 24, 2020, for filing 2016 (we think) to 2019 personal tax returns. EFile is also available starting February 24th.

RRSP Contribution Deadline:  March 2, 2020 is the deadline for making RRSP contributions for the 2019 tax year.

Canadian Financial & Income Tax Calculators

We have lots of calculators - for income tax, borrowing, investing, RRIF withdrawals, US estate tax for Canadians, CPP retirement pension calculator and more.  The following very detailed tax calculators are great for tax planning:

2020/2019 Canadian Tax & RRSP Savings Calculator - all provinces & territories except Quebec

2020/2019 Quebec Tax & RRSP Savings Calculator

Personal Tax

Why You Should File a Tax Return

There may be circumstances that require you to file a tax return, including the sale of your principal residence.  You should file a tax return even if you have little or no income, to receive refundable tax credits, GST/HST credit, and to establish eligibility for other government programs and services.

Filing Your Tax Return - Income, Deductions, Tax Credits

We have many articles on filing your tax return and how this can be done, as well as articles about different types of taxable income, deductions and tax credits, and many other topics.  Make sure you take advantage of available tax credits!

Life in the Tax Lane February

This month's video discusses: 

  • Joint Tenancy - Cautions
  • Executor Personal Liability
  • Condo Pre-Sale - GST/HST Issues
  • Home Accessibility Tax Credit
  • Tax Promoter Schemes
  • Negligence - Erroneous Donation Claims

Reporting Foreign Income and Expenses on the Tax Return

All income and expenses must be reported on your tax return in Canadian dollars, converted either at the transaction date exchange rate, or the average exchange rate for the year.  The average US exchange rate for 2019 is 1.3269, which can be used for dividends, but not for purchases and sales.

Financial & Estate Planning / Registered Plans / Investing

Ontario Estate Administration Tax Eliminated for Estates up to $50,000

As per the Ontario 2019 budget, estate administration fees are now zero for estates of $50,000 or less.

Transfer Shares to a Registered Account, But Not at a Loss!

You can do an in kind transfer of shares from a non-registered account to a registered account such as an RRSP.  However, if you transfer shares on which there is a loss, the loss will not be deductible.  If you transfer shares on which there is a gain, you will have a taxable capital gain.

RRSP/RRIF Withdrawal Calculator

Use our calculator to calculate your 2020 minimum annual withdrawal, and to estimate your earnings and withdrawals for the next 40 years. Works for non-registered also!

Historical Returns on Investments - Stocks, Bonds, T-Bills

2019 was a great year for stocks! See returns for 1/5/10/20/40/50 & 70 years, and the growth of $1,000 invested. Over the past 10 years one would be losing money after inflation by investing in Canadian 3-month T-bills or Canadian government 1-3 year bonds.

Investment Return Calculator

Use our investment return calculator to determine your returns for 2019 or any time period for a particular investment or investment account, or your entire portfolio.

Joint Ownership of Assets

Assets are sometimes put into joint ownership with right of survival in order to minimize probate fees.  A recent court case highlights why this is sometimes a very bad idea!

Business

Hoping To Be a Business Owner?

Are you an aspiring entrepreneur?  Should you start your own business, or buy the shares or assets of an existing one? Check out advantages and disadvantages.

Automobiles, Passenger Vehicles and Motor Vehicles - Tax Issues

Deductible expenses, need for a trip log (CRA has a car expense project), expense limitations, auto taxable benefits, and GST/HST input tax credits on vehicle allowances.

Government / Budgets

Federal 2020 Pre-Budget Consultations 

Surveys are available to be completed on the Your Budget website, and you can share your ideas via email.

Provincial 2020 Budget Consultations

Give your ideas! Ontario budget consultations end February 11, 2020.  Manitoba will end January 31, so give your input now.

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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