Principal Residence Exemption Rules Have Changed

The income tax system provides a significant income tax benefit to homeowners disposing of their principal residence, in the form of an exemption from capital gains taxation (“the principal residence exemption”). However, there are limits to the exemption. The exemption is intended to be available only to Canadian resident individuals and trusts. Also, families are…

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Home Buyer’s Amount

First Time Home Buyers Tax Credit You can claim an amount of $5,000 for the purchase of a qualifying home acquired in 2015, if both of the following apply: 1) you or your spouse or common-law partner acquired a qualifying home; and 2) you did not live in another home owned by you or your…

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Child Care Deduction

Child Care Deductions Child are expenses are one of the most meaningful deductions for a single parent or a couple (married or common-law). The amount you can deduct depends on your situation, Basically: There are limits on how much can be deducted for each child The claim cannot exceed 2/3 of your income Normally, the…

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MSP Giving You Grief?

We have had many calls from individuals who need to catch up on old tax returns that haven’t been filed yet. The reason is that they have been contacted by the administrators of the BC Medical Services Plan about premiums that may be past due, or they are requesting that all tax returns be filed…

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US Tax Returns (1040)

US Tax Returns for US Citizens Living in Canada We prepare US tax returns and FBAR filings for US Citizens living in Canada. Most of these returns are quite straight-forward, including getting caught up on returns that should have been filed in previous years. It is important to be compliant with the IRS filing requirements or…

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RRSPs: Lesser Known Facts

RRSPs: Lesser Known Facts Overview Registered Retirement Savings Plans (“RRSPs”) have been around since 1957. In those days, the rules were pretty straight-forward. Since then, the government has added a number of improvements which help Canadians save for their retirement, but also help fund other needs within their lives. It wasn’t that long ago that many…

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