Calculate mutual fund income with caution. It’s easy to slip up when figuring out tax payable on income from non-registered mutual fund investments. While mutual funds are taxed in much the same manner as your other investments, some important differences exist.

This is the time to consider a tax-loss sale. In the next few days review your stock market triumphs and disasters over the past 4 years. Sales of portfolio losers before year-end could generate a big tax refund. Stock market volatility and price declines during the past couple of years have stressed investors. Many stocks and … Read more

Some people 65 years of age or older, as part of their estate planning process, are transferring assets at no tax cost to lifetime trusts such as alter ego or joint partner trusts. A key benefit is the avoidance of provincial probate fees required when transferring such assets through a will.

As a Canadian taxpayer you can claim a tax credit for medical expenses. The Income Tax Act cites a long list of eligible expenses, mostly for conventional therapies and treatments. What we think of as “alternative medicine,” however, occupies a zone of uncertainty in terms of tax treatment.

Are you a pension plan candidate?

An individual pension plan (IPP) can help you shelter more income than an RRSP – but only if you earn more than $100,000 per year and as an owner/manager are prepared to commit your company to meeting all obligations associated with IPPs.

An unusual little blip in CRA’s method of processing tax filings can result in taxpayers being charged interest for late payment even if they filed and paid on time. This happens because CRA separates filing documents from any cheques written to cover taxes owed. If your cheque is overlooked, it could take some time before … Read more

Generally, the person making the gift or whose estate has bequeathed the inheritance of capital property is responsible for taxes, with some exceptions. CRA considers the giver to have sold the property at fair market value on the date of transfer making them liable to pay tax on any capital gains.

That wintertime convention in the sunny south – is it tax deductible? Get a handle on the tax rules before you hit the high spots. Are travel and other expenses paid by your corporation taxable benefits for you? If your spouse goes too, how are those expenses treated?

When it comes to provincial sales tax (PST), every Canadian businessperson who sells or leases taxable goods or provides taxable services is a poorly paid tax collector. That is, unless you live in Alberta where there is no PST. Provincial governments take your job as tax collector very seriously, and here’s why. There is a great deal of money in it.