Tax Tips Blog & Articles

Deducting Legal and Accounting Fees

By: Michael L. Williamson, Tax and Accounting Specialist

Many business owners are fully aware of some of the common legal expenses, such as drafting a shareholder’s agreement, reviewing the contents of a lease agreement, reviewing an employment agreement, etc.  The list is extensive.  You might also know that these expenses are all deductible to the business.  The business gets the tax break. 

Read more: Deducting Legal and Accounting Fees

Six Deduction the Taxman Doesn't Want You To Have

TaxmanIt’s interesting how what is not ok with family and social development, is perfectly fine with the law.

For example, it’s perfectly legal for a sibling to pay their brother or sister to do their chores. But I believe most parents would veto this idea, because although ok by law, it’s the principle that counts.

It’s clear that the law doesn’t always recognize that certain behaviours may be against other laws. Take for example, while it’s illegal to marry more than one person in Canada, our law for tax purposes will allow you to treat more than one person as a spouse, if each meet the definition under the income tax act.

Read more: Six Deduction the Taxman Doesn't Want You To Have

Will you be able to afford your home in retirement?

Guess Article By: Ian Webster, Financial Planner

People looking ahead to life after work often have little idea how much money they spend now, let alone 5 or 10 years into the future.

Expenses never really go away. After all, you have to live somewhere. With the rate of home ownership in Canada hovering near 70 per cent, and with household debt near a record high, most people’s financial health is closely tied to the value of their principal residence.

But while many may have considerable wealth tied up in their home, they tend to ignore the off-balance sheet liability when it comes to the costs of keeping it. Whether it’s rising hydro rates or property taxes that only trend upward, these unavoidable costs of living are destined to take significant bites out of fixed retirement budgets.  

Read more: Will you be able to afford your home in retirement?

Inheritance and Taxes

By: Michael L. Williamson, Tax and Accounting Specialist

Lately, I have been posed with this question: do I have to pay taxes on the property that I inherit from my relative? Let’s take a look at this important question.

Is there an Inheritance Tax in Canada?

Canada does not have an estate inheritance or a death tax. In general, there are no taxes levied by CRA on the beneficiaries; without being brazen, when a person dies they leave the Canadian tax system. On death they are subjected to tax for the very last time and the estate pays any tax that is owed to the government.

Read more: Inheritance and Taxes

How will the New Government Affect your Taxes?

Income tax

Depending on your tax bracket, the new government may either cost you or save you big bucks. 

Here are some of the Liberals’ promised tax changes and what they mean to you- When these promised will take effect is currently uncertain:

Lower Taxes for Middle Class
The Liberals as stated that their first priority will be to cut the tax rate from 22 per cent to 20.5 per cent for the middle income tax bracket, which affects Canadians with taxable annual income between $44,701 and $89,401. There is some speculation that this could be done retroactively to the beginning of 2015, but more than likely, this rate change would be effective January 1, 2016. However, for this to take place Prime Minister Justin Trudeau would have to act pretty quickly, very similar to what Rachel Notley had done in Alberta.

Read more: How will the New Government Affect your Taxes?

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