Category Archives: Tax Myths

TAX MYTH – Vehicle Advertising

Written By on June 5, 2017

If you’re hoping to increase the business use of your vehicle by using vehicle advertising, you may be in for a surprise. Tax Myth: If I advertise on my vehicle, I can claim 100% of the vehicle expenses This is not the case. Vehicle advertising does not change the nature of a trip. When a sole-proprietor uses a vehicle for both personal and business use, the business deduction is determined at the end of the year using a log that details […]

TAX MYTH – Reporting Tip Income

Written By on April 28, 2017

Every year across Canada, some of the country’s service industry workers file their taxes without adequate support for their tip income. Tax Myth: I can report my tip income as a percentage of my T4 Although this is a common practice for some taxpayers in Canada, it is not an acceptable method of reporting tip income. In fact, in some cases the employees are not required to report tips at all as the responsibility may fall on the employer. Regardless of […]

TAX MYTH – Spousal RRSP Contributions

Written By on March 2, 2017

With tax season over, we are taking a look at a common misconception we came across related to spousal RRSP contributions. Tax Myth: My spouse can deduct RRSP contributions I make to a spousal RRSP Unfortunately, this is not the case as RRSP contributions made to a spousal RRSP are deducted on the contributor’s tax return.  You will not be able to take advantage of your spouse’s tax brackets or RRSP contribution limits. The main purpose of a spousal RRSP […]

TAX MYTH – First Time Home Buyers

Written By on February 22, 2017

We are looking at the First Time Home Buyers amount; a $5,000 non-refundable tax credit that can save you up to $750. Tax Myth: The First Time Home Buyer’s tax credit is based on your percentage ownership of the property That is incorrect. Last year, we talked to a young couple that recently purchase a home. On the “tax advice” of their lender, they were told that the First Time Home Buyer’s tax credit is based on their percentage ownership. The […]

TAX MYTH – Selling Your Principal Residence

Written By on February 2, 2017

Tax Myth: I don’t have to report the sale of my principal residence on my tax return. That is no longer correct. You are required to report the sale price, the acquisition date and a description of your principal residence on your tax return if you sold or are “deemed” to have sold your principal residence on or after January 1, 2016 – even if you don’t have to pay taxes on the sale! And it may surprise some taxpayers […]

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