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.

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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.

Homes Renovation Tax Credit

How Healthy Homes Renovation Tax Credit for Seniors  works?

“The wheelchair ramps, elevators, non-slip bathroom flooring, hands-free taps, automatic garage door owners and motion-activated lighting qualify for this tax credit including grab bars, walk-in bathtubs, Healthy Homes Renovation Tax Credit does not cover the services of Services  home security,housekeeping, regular house repairs and wheelchairs/walkers. Healthy home renovation tax credit can be claimed by senior homeowners in Ontario, tenants and people who share a home with a relative who’s a senior” says Navtaj Chandhoke, founder of World Wealth Builders, a Canadian Real Estate Investment Training center.

If you would like to either consult the Ministry of Finance  on this tax credit to get in depth details please visit  http://www.fin.gov.on.ca/en/credit/hhrtc/index.html

Canada Revenue Agency (CRA) can  demands proof of expenses and claimants don’t need to submit receipts, although they should be kept in case. There is no income cut off.

This is Healthy home renovation tax credit for Ontario senior homeowners, tenants and people who share a home with a relative who’s a senior.

WorldWealthBuilders.com have a list of Canadian grants, tax credits and rebates for Real Estate Canadian Real Estate investors can take advantage of these programs for their Canadian Real Estate investments.

World Wealth Builders conveys action-orientated Real Estate training, apprenticeship, coaching and mentoring for Canadian Real Estate investments since 1993 World Wealth Builders have been providing Canadian Real Estate wealth creating secrets, innovative strategies and step-by-step practical how-to methods through dynamic hands-on apprenticeships for Canadian investors.

Navtaj Chandhoke is a Canadian-based real estate investor, speaker, author, educator and the founder of World Wealth Builders and Professional Real Estate Investors Group (PREIG) Canada, the leading REI Club providing Canadian investors education, mentoring, support and network.

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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.

Tips to save yourself tax dollars in Canada

1.     Borrow to Invest, Save to Buy

The days of debt-free living are passing fast and almost everyone in Canada is carrying some type of debt. Debt can, in a small way, help to reduce your tax bill if you incur the right type. A loan to buy an investment is great to save taxes

The reason is that the interest on loans and mortgages taken for the purpose of investing is tax deductible. From a tax perspective, you are better off using cash or savings for these discretionary purchases and then borrowing to invest in Canadian real estate rather than the other way around; as far as your personal finances go, no debt is the best kind of debt.

2. Selling your Stock – Dec 2014 or Next years?

It’s always good to defer your taxes. If you’re thinking of taking some profits on your stock portfolio, consider waiting until January to sell. This will push the payment of your taxes in Capital gain on the sale to April 2016.On the other hand; if you have unused or accrued capital losses consider selling your winners today and offset your capital gains with your allowable capital losses.

You can reinvest the proceeds and your new investment will have a higher adjusted cost base (ACB) than your current winners. You get the benefit of this “step-up” in ACB without triggering tax when your capital losses offset your gains.

3. Increase business expenses

Another way of “managing” your income for the year is to increase your business expenses. Think about your upcoming needs for products, real estate investing training, coaching or services and fill them now. Review the categories of potential business expenses, and see if your expenses are “low” in any one area. It’s certainly never too late, for instance, to do some more advertising or promotion and attending real estate seminars to increase more income for your business.

4. Max Out Your RRSP

Registered retirement savings plans (RRSPs) are the government’s weak apology for gouging citizens on their taxes. You may as well use the bone they throw you and get the most out of this chance. When speaking about borrowing to buy investments, maxing out your RRSP is usually a sensible decision provided that you are able to service the loan in a reasonable period of time.

5. Donate securities to charity

Are you thinking of donating money this year? You’ll save more tax by donating some of the profitable stock in your portfolio. Any capital gain on a security that is donated to charity will be set to zero. And you’ll also be entitled to a donation tax credit.

6. Transfer capital losses to your spouse

If you have unrealized capital losses but no capital gains this year or in the past three years, consider transferring those losses to your spouse if they have capital gains that can offset the losses.

7. Review your portfolio for tax efficiency

Capital gains and eligible Canadian dividends receive more favourable tax treatment than interest or foreign income. Understanding type of income generated by your portfolio can help in reducing taxes payable on your portfolio.

8. Consider paying dividends

Paying salary and bonus can result in high tax bracket for business owners. Using dividends to pay the business owners can result in substantial tax savings

9. Creating a Holding Company

• Risk of clients and creditors suing the corporation, more legal and finance work
• Benefits of holding company
• Creditor proof excess funds of operating company
• Enables income splitting and tax free dividends from operating company
• Holding company will have more pre tax money to invest

10. Start a Family Trust

Family trust with spouse, children and holding company as beneficiary can provide multiple capital gain exemptions ( $ 800,000 life time capital gain exemption) if company is sold in future. Trust can also be used to further protect the assets and provide income splitting opportunities among family members

11. Child Care Expense Deduction

The Child Care Expense Deduction allows parents to deduct child care expenses incurred to earn employment or business income, pursue education or perform research. Generally, the lower – income spouse (or a single parent) can claim the deduction

The child care expenses dollar limits will increase by

• $1,000 – i.e., to $8,000 from $7,000 per child under age seven
• to $5,000 from $4,000 for each child aged 7 to 16 (and infirm dependent children over age 16)
• to $11,000 from $10,000 for children who are eligible for the Disability Tax Credit, starting in 2015

12. Universal Child Care Benefit and Child Tax Credit

The Universal Child Care Benefit will increase to $160 per month (from $100 per month) for each child under age six. The government is also introducing a new benefit of $60 per month for children aged six through 17. Both these changes will take effect starting in January 2015.These changes will be reflected in monthly payments received starting in July 2015.At the same time as the increase to the Universal Child Care Benefit takes effect, the existing Child Tax Credit (available to individuals with children under 18) will be eliminated.

13. Should I sell my stock with losses before year end?

Did you report capital gains on your 2013, 2012 or 2011 tax returns? (If Yes)  Then realize capital losses in current year (Year 2014) and carry back losses. You’ll be able to carry your capital losses back up to three years to offset gains in those years and recover taxes you paid.

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Any tax advice herein is based on the facts provided to us and on current tax law including judicial and administrative interpretation.  Tax law is subject to continual change, at times on a retroactive basis and may result in incremental taxes, interest or penalties.  Should the facts provided to us be incorrect or incomplete or should the law or its interpretation change, our advice may be inappropriate.  We are not responsible for updating our advice for changes in law or interpretation after the date hereof.

 

“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

The Canadian Government has made the tax relief measures that are available through Canada’s Economic Action Plan. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. This new tax relief measure is only one of many introduced since 2006 to keep taxes low for Canadian families and businesses.

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.
The Canadian Government has introduced or improved a number of tax relief measures for Canadians, including:

The Family Caregiver Tax Credit – Is a 15 per cent non-refundable tax credit on an amount of $2,000 that provides tax relief to caregivers of infirm dependent relatives. This includes, for the first time, infirm spouses, common-law partners, and minor children. Canadians can claim this new, non-refundable tax credit for the first time when filing their 2012 taxes.

The Medical Expense Tax Credit – In order to fully recognize the medical and disability-related costs incurred by caregivers, the Canadian Government has removed the $10,000 limit on the amount of eligible expenses a caregiver can claim in respect of financially dependent relatives.

The First-Time Home Buyers’ Tax Credit – Assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees. More than 550,000 Canadians have taken advantage of the First-Time Home Buyers’ Tax Credit.

The Children’s Fitness Tax Credit – Canadian families can claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible physical activity programs, such as soccer or hockey teams. For the 2011 tax year, over 1.5 million families took advantage of the Children’s Fitness Tax Credit.

The Hiring Credit for Small Business – Small businesses that meet certain criteria and paid more in Employment Insurance premiums in 2012 over 2011are eligible for the credit, which puts up to $1,000 back into the accounts of job creators. As of September 30, 2012, over $200 million has been credited to over 500,000 eligible employers.

The Children’s Arts Tax Credit – Canadian families can claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible artistic, cultural, or other programs, such as music lessons or tutoring. Over 460,000 families claimed the Children’s Arts Tax Credit in the 2011 tax year.

The Apprenticeship Job Creation Tax Credit – Provides employers with a tax credit of up to 10 per cent of the eligible wages payable to eligible apprentices. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. For the 2011 tax year, more than 10,000 employers across Canada used the Apprenticeship Job Creation Tax Credit.

The Trades person’s Tool Deduction – Allows trades people to deduct from their income part of the cost of tools purchased throughout the year.

The Textbook Tax Credit – In order to better recognize the cost of textbooks, this credit provides increased tax relief to students in addition to the Tuition and Education Tax Credits. Students must first claim their credit on their own returns, but may be able to transfer unused amounts to a parent, grandparent, spouse or common-law partner.

The Universal Child Care Benefit (UCCB) – Gives families with young children more choice in child care by providing $100 per month for each child under age six. Canadians received almost $2.7 billion in UCCB payments in 2011.

The Tax-Free Savings Account (TFSA) – Allows all Canadians to earn tax-free income through a range of investment products. TFSAs have become increasingly popular, with approximately 8.2 million Canadians having opened an account and roughly 2.5 million Canadians contributing the maximum in 2011. Starting on January 1, 2013, Canadians will be able to contribute $5,500 to their TFSAs annually.

The Registered Disability Savings Plan – A long-term savings plan to help Canadians with disabilities and their families save for the future. Since being introduced by the Harper Government in 2008, over 60,000 plans have been opened.

The Canada Employment Credit (CEC) – A 15 per cent non-refundable tax credit on an amount of $1,095 in employment income, the CEC was introduced by the Harper Government to recognize employees’ work expenses for items such as home computers, uniforms and supplies.

The Public Transit Tax Credit – Allows Canadians to claim the full amount they spend on eligible transit passes for the year. In 2011, more than 1.6 million Canadians claimed this credit.

The Volunteer Firefighters’ Tax Credit – available to any Canadian volunteer firefighter who serves at least 200 hours/year at one or more fire departments in their community. In 2011, more than 37,000 Canadian volunteer firefighters took advantage of this new tax credit.

For more information on the various tax measures supporting working Canadians and their families, go to
http://www.cra-arc.gc.ca/taxsavings/.

To receive a free report on Government grants, tax credits, rebates and Down payment,

please send your request to gifts@WorldWealthBuilders.com

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Are you looking for Master Coach/Mentor/Speaker & Canadian hard money lender ?     Join now Canadian REI Club membership to attend upcoming No $$ Down Canadian Real Estate Seminar LIVE in Canada and become next Canadian Real Estate Apprentice

If you have RRSP contribution room, you should contribute your savings before March 1, 2013 or 60 days after the December 31.

More information can be obtained from Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

You can qualify for a 2012 tax refund based on the amount you contribute and your marginal tax rate.  Use Canadian RRSP Tax Refund as Down Payment. Then, after 90 days, you can redeem those funds under the Home Buyer’s Plan (HBP).

The Home Buyers’ Plan (HBP) lets first-time home buyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs.  You’ll need to pay those funds back, of course, on a repayment plan, but this strategy of Use Canadian RRSP Tax Refund as Down Payment can make a substantial difference in the affordability of home ownership!

And while your funds are tied up for those 90 days, the Mortgage Brokers or banks can get you an interest rate hold. To learn more about how to implement this strategy attend upcoming Canadian Real Estate Investment Training Seminar Apprenticeship.

Align yourself with the most powerful, knowledgeable, influential, successful over 12,500+ Canadian Real Estate Investors for monthly mentoring,network and support at Professional Real Estate Investors Group (PREIG) Canada.

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 P.S. Take Action now to attend the eye-opening seminar and walk away with confidence, knowledge, and specific “action ideas” that can help you achieve your dreams and leave the rat race behind.

 We have been training Canadian Real Estate Investors since 1993.

Quick flips or assignments, short term fix and flip and long term buy and hold are few strategies applied by Canadian real estate investors. Professional Real Estate investors do not invest for the sake of it instead this is simply intelligent business decision to make money. The tax laws in Canada allows Canadian home owners to keep all their gains to themselves without paying any taxes. Capital gains tax does not apply to Canadian home owners.
Investing in Canadian real estate means investing your capital to acquire real estate i.e.  buying property at a low price and selling it at a higher price so as to make a profit out of it. It’s mandatory to achieve high return on your investment to acquire good real estate investment. The forced appreciation is the key to utilize government forgivable grants, tax credits and rebates.

Sophisticated Canadian real estate investors always borrow all the capital to invest in real estate investments and the interest paid to the lender can be written off as an expense.  Joint ventures are very common to acquire large real estate investment properties where the professional real estate investor brings their expertise in real estate investments. Now, how can you get these potential profit-making Canadian real estate investments?

The local print media can be one of the sources to find great Canadian real estate investments.Just search for  real estate investments that are listed directly by the owners who want to avoid paying commission to the Canadian real estate brokers. Private sellers can be more open for negotiation because their is a savings of real estate commission in the deal.  For sale by owners have concern about showing their home to too many strangers due to their lifestyle, for example hoarders, animals, divorce or run down properties.

The community newspapers have a column to place ads that you are looking to buy  real estate investments. Delinquent mortgage payments can force the current property owner to sell the property in a hurry to avoid further law suits, hassles, and fear of being kicked out. These properties are also pre foreclosure. On the same lines, you could use internet to search for the real estate investment avenues. In fact, you would be astonished by the number of real estate investment opportunities you are able to locate on the internet. Not only that, searching for real estate investment opportunities is much easier on internet than anywhere else.

The government auctions, tax sales and sheriff sale of lands are great for finding  real estate investments at whole sale prices.

Canadian mortgage lenders can be another resource to find all those panic property sellers.  A delayed mortgage payment is like a nightmare for the mortgage lender. They would prefer to get paid less in time rather than going through legal hassles.  That’s why proper education and training in investing in Canadian real estate by World Wealth Builders pays of many times over. Education and knowledge is much cheaper than making one fetal mistake in investing in real estate. Great  real estate investments are available here. Families splitting due to divorce can be another source of basement bargain prices.

So, real estate investment is really about finding good deals. Canadians can find discounted real estate with proper education and effort. To learn more about Canadian Real Estate Investment training seminars and apprenticeship please call 1-416-409-7300

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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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