You still have 61 days to save on your 2016 personal income tax by contacting us now to arrange your free, no-obligation, strictly confidential FinancialCHECKUP™.
To get your free 2016 TAX RETURN ORGANIZER™ please contact us. Now more than ever you need to know that you are paying the least amount of tax.
TAX TIP If you rent out a portion of your home, you may have to report a taxable capital gain on your personal tax return. When there is a change in use of real estate, either from income-producing to personal-use (e.g., principal residence or cottage/second home), or from personal-use to income-producing, there is a deemed disposition. You may be able to defer recognition of the capital gain by making special election under subsection 45(2) of the Income Tax Act to not have change in use or you could eliminate it using the PRE principal residence exemption if it has always been your principal residence. Due to complicated tax rules and to avoid costly errors, please contact us for professional assistance.
Remember these tax savings tips:
- Defer deductions such as CCA capital cost allowance and RRSP to save them for a subsequent year when you will have a higher tax rate or if you are not fully utilizing your non-refundable personal tax credits
- If you incurred capital losses in 2016, consider carrying them back to previous taxation years to receive tax refunds
- Revise a maximum 10 prior years’ tax returns for errors or missed expenses to receive tax refunds
- Consider an optimum salary and dividend mix to reduce your income tax if you have your own corporation
- Maximize interest deductions by arranging your borrowings first for business or investment purposes and then for personal use
- Split pension income with your spouse to minimize tax and maximize the pension credit
- File a tax return for your child if he or she has earned income so that RRSP contribution room will be created
- Consider filing Form T1213 to request a reduction in your income tax withholdings from your salary in 2017
TAX TIP Regarding your automobile tax deductions after 2016: (a) no matter how expensive your vehicle is, there is a maximum capital cost allowed of only $30,000 plus applicable taxes (b) the maximum allowable interest deduction on loans is $300 per month and (c) the limit on leasing costs is $800 per month plus applicable taxes. To ensure you maximize your automobile tax deductions in the correct manner, please contact us.
May 1, 2017 Tax Deadline
You must pay your 2016 personal income tax by May 1, 2017 so be sure to file your 2016 individual income tax return on time to avoid penalties and interest.
We Will Help You
HALPERN Chartered Professional Accounting Firm is a full-service Tax, Accounting, Business Advisory and Financial Planning CPA firm. Accurate and timely information is only one piece of any effective solution. We are dedicated to bringing you all of the pieces together – knowledgeable and innovative advice, leading-edge technology, and a strong relationship with our clients. This type of creative thinking enables us to help you and your business organization to solve complex problems and significantly enhance your ability to improve performance, manage risk and build value.
To arrange your personal and confidential FinancialCHECKUP™, call now 905-709-HELP or click here.