Tax time does not have to be stressful and
professional help in this area does not have to be expensive.
Taxpayers with small businesses or rental
properties are a major portion of my business and I would be please
to advise you in this area. You want to make sure that you are
claiming all of the deductions you are entitles to and that is
where a professional accountant can help.
Some tax tips to consider
for the coming year are discussed below:
RRSP's are still the primary method most people
reduce their taxable income. The amount available to contributed
is base on 18% of your previous years earned income, plus any
unused deduction from prior years. The notice of assessment you
received after filing last year's income tax return should indicate
the amount of contribution limit currently available. Your deduction
limit can also be obtained by calling the revenue Canada automated
phone service at 1-800-267-6999.
Labour Sponsored Investments
Investments in labour-sponsored venture capital
are eligible for the 15% federal and 15% provincial tax credit.
In addition, these investments can be purchased by your RRSP.
These investments must be help for
a minimum of 8 years to avoid repayment of the tax credits.
Voluntary disclosure was introduced several
years ago to assist taxpayers who have never files a tax return
or have not filed for at least two years and the taxpayer contacts
Revenue Canada first. Penalties on overdue taxes will not be assessed
but the tax and interest would still be owing. Depending on the
circumstances, not all missing years need be filed if records
are not available and/or income was not substantial. The process
can initially be on an anonymous basis until an arrangement is
made that both sided can live with. You should discuss voluntary
disclosure with a professional advisor prior to contacting Revenue