Tax Credits For Canadians

“Canadians should take advantage of all eligible tax credits and deductions. In Canada, federal, provincial and territorial governments offer a variety of credits aimed at reducing the amount of taxes” says Navtaj Chandhoke, founder of  World Wealth Builders, a Canadian real estate Investors training centre serving Canadians since 1993. “Canadians owe; however, in order to take advantage of tax credits, they must be identified and claimed on your tax return and get proper advice from Canada Revenue Agency and or their Tax professionals”.

tax credits for canadians

Some often overlooked tax credits and deductions are as follows:

Apprenticeship Job Creation Tax Credit: Businesses that employ an apprentice in a skilled trade are eligible to receive a non-refundable tax credit equal to 10 per cent of the salaries and wages paid to the apprentice (or up to $2,000) in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government).

Educational Examinations Tax Credit: Many students who acquire a professional status must pass a licensing exam which would carry an additional expense. Students who paid a qualifying institution to take an examination, in addition to their tuition fees, can generally claim this expense as a tuition tax credit.

Textbook Tax Credit: Textbooks for post secondary education can cost upwards of $200 per book. Students can claim textbook expenses up to $65 per month of study for full-time and $20 per month of study for part-time students.

Tradepersons’ Deduction for Tools: Many tradespersons must purchase tools up-front in order to earn employment income. Meeting the criteria for this tax deduction allows a tradesperson to expense up to $500 of the cost of eligible tools – including any GST or HST provincial sales tax, or HST paid – in their tax return.

Children’s Art Tax Credit and Children’s Fitness Tax Credit: Many Canadian children are involved in extracurricular activities. Parents are entitled to claim two tax credits of up to $500 each for each child under the age of 16, to cover expenses related to the cost of a child’s registration or membership in an eligible artistic, cultural, recreational or developmental activity and/or programs that endorse physical activity (such as hockey, dance, soccer, etc).

Caregiver Tax Credit: Canadian families that are providing in-home care for a dependant adult relative, including an aging parent, or other relative with a physical or mental impairment, may be eligible for a caregiver tax credit provided the dependant’s net income is below certain threshold amounts.

Tax Cheats are regularly investigated based on tips the public provides to the Canada Revenue Agency (CRA) the federal government department responsible for making sure people declare all of their income when they file their returns.

One program, known as the Informant Leads Program, allows people to provide information to the agency while protecting their identity. The program’s website encourages spouses to get in touch with details that reveal someone’s net worth, such as documents showing ownership of cottages and boats.

It’s one of the many tools the Canada Revenue Agency (CRA) has at its disposal for trying to recover the money it is legally owed so the government can spend it. Canada Revenue Agency (CRA) employees have a complex algorithm they use to identify who is most likely cheating on their taxes. The details of what they look for, however, are kept secret so as not to tip off the cheaters.

tax credits for canadians

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Healthy Homes Renovation Tax Credit for Seniors

Homes Renovation Tax Credit for Ontario Seniors get $10K Tax Credit for Renovations. Ten thousand dollars in Tax credit will be available for Ontario seniors to renovate and improve accessibility. The bill passed in Ontario government with majority in favor.

It was a promise Premier Dalton McGuinty made a year ago during the last election campaign.  Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada said, “The tax credit is up to $10,000.00 in eligible home renovations or 15% up to $1,500 each year”

Health Minister Deb Matthews says in a press release.This Healthy home renovation tax credit will also help achieve the goals of our Action Plan for Health Care by keeping our loved ones out of hospitals and long-term care, and at home, where they want to be.

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Top 10 tips to save yourself tax dollars in Canada

 “Canadian taxes rarely cause excitement for professional real estate investors but following the simple rules by

 

 

 

 

 

Canada Revenue Agency CRA can provide you all the guidelines to save money” says Navtaj Chandhoke of Professional real estate investors group (PREIG) Canada. The rules are constantly changing and tightening,Don’t despair; there are still simple ways for Canadian real estate investors to limit their tax exposure. Here are top 10 tips to save yourself tax dollars in Canada. And there are three bonus more optional tips.

Top 10 tips to save yourself tax dollars in Canada

Top 10 tips to save yourself tax dollars in Canada

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Tips To Reduce Income Taxes

The Canada Revenue Agency encourages Canadians to file and pay on time and online using it’s quick, easy, and secures electronic services.

Pay in Time-As has been the practice of the CRA when April 30 falls on a weekend, this year’s filing deadline extends to Monday, May 2, 2011. You have until midnight on May 2 to file your 2010 income tax and benefit return and to pay any balance owing.

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Tax Credit and Savings – Canada Economic Action Plan

Canada Economic Action Plan

“Canadians can take full benefit from the following Tax Credit and Savings provided they are aware of them. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. Claiming these credits by filing online and using direct deposit will, in most cases, help Canadians to receive a refund in as little as eight days, compared to four to six weeks for a paper return” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, the largest Real Estate Investors network group in Canada.

Tax Credit and Savings

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Moving Expenses -Let Canadian Taxman pay for it

Let Canadian Taxman or your Employer pay your Moving Costs

moving expenses

Being a Canadian Professional Real Estate Investor, you need to educate themselves about Canadian taxes. We pay taxes from the day we are born till our death. Majority of Canadian Professional Real Estate Investors do not pay attention to the taxes. Canadian taxes can be two way street. We also need to learn how to claim all our eligible expenses when we move?moving expensesContinue reading

Tax Saving Tips for Real Estate Investors in Canada

Tax Saving Tips for Real Estate are as important as Real Estate investments.There are two things certain in life, death and taxes. Majority of Canadians do not understand the complexity of taxation.” A major portion of your earning goes toward your taxes which can be as big as 46-80% of your total earnings. Knowing a little about taxes can save you huge amount of money” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada.

Here is brief description of top ten tax saving tips. These are simple guidelines and are not rendered as professional advice. Your Chartered accountant can assist you professionally.

In its T4036 Guide to Rental Income, the Canada Revenue Agency provides a number of questions you can ask yourself to help determine whether an expense is current or capital in nature. For example, you replace wooden steps with concrete steps, it’s a capital expense. But if you simply repair the wooden steps, the expense is currently deductible.

Dont exaggerate your home office expenses. This is a red flag for the CRA. There are always exceptions, but a good rule of thumb is a maximum of 25 per cent as the business share of heat, hydro, property taxes and so on.

Keep a careful log of car expenses. This is another red flag for CRA.

If you run into trouble or make a mistake, call the CRA. Most times they will be very helpful, especially if you call before the crunch.

Whatever you do, dont ignore communications from the CRA, respond promptly and make notes of your conversation right on the letter for future reference.

Unless you are incorporated you are required to complete a Statement of Business and Professional Activities (T2125) at the same time as you file your personal taxes.

Dont wait until the last minute. Its impossible to get yourself properly organized under eleventh-hour time pressure and its difficult to make good decisions to minimize your taxes.

Make an estimate of your expected tax bill. If your revenue is going to be high, you might consider making that machinery or computer purchase before years end. Youll defray some of the expense through capital cost depreciation.

You should set aside 30 to 40 per cent of your gross income to cover income tax and CPP. Even if you are the only employee of your business, you are responsible for paying the employee and the employer CPP contributions.

Keep proper records differentiating business from personal If you cant prove it, the CRA will likely assume the expense is personal. Use the categories provided by CRA on the T2125.

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