Category: Tax Information

Home equity settles CRA debt

Home equity settles CRA debt Sometimes even successful people run into debt problems. We see it often with small business owners who have not set up a proper tax remittance program with CRA. One day they wake up to a huge tax liability that isn’t likely to go away. Chao and Xiaoling own their home …

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Borrowing to invest tax efficiently is not news

Borrowing to invest tax efficiently is not news Mortgage professionals and financial planners like to trumpet the famous Smith Manoeuvre, as coined by Fraser Smith (1938-2011) In a nutshell, this program shows you how to free up equity in your home for investment purposes, and to do so in a tax efficient manner. I give …

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HST Rebate for New Condo Landlord

HST Rebate for New Condo Landlord Some people buy new condos as an investment, and others find themselves “accidental landlords” for any number of reasons. For newbies, it is often a shock they will have to repay HST to their builder on the closing date. I received a letter today from a reader on this …

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Income Tax Time

Income Tax Time There are a few things in life we all covet dearly – like a trusted auto mechanic, a great family doctor, or a dry cleaner who actually removes stains, etc. For me, you can add my tax accountant to this list. In one of my favorite Seinfeld episodes, there were always lineups …

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Unused tuition tax credits

Unused tuition tax credits Hi Ross, I have accumulated a large amount of tuition tax credits over the past several years. It’s going to be a long time before I can use them, as I am enrolled in medical school starting this September. Is there some way I can materialize cash out of the credits …

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Condo investors losing thousands in HST

Condo investors losing thousands in HST Dear Ross, last year I took occupancy of my new condo in June, but the actual sale did not close till February of this year. (I understand this is fairly common) I decided to stay in my own apartment and rented the new condo out. When I went to …

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How to Choose an Investment (Rental) Property

How to Choose an Investment (Rental) Property Dear Ross, I am bullish on the long term prospects of Canadian real estate – especially in the Greater Toronto Area, where I live. I am already a homeowner, and our mortgage balance is only $102,000. Now we want to buy a second property, rent it out, and …

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CRA debt and too much unsecured credit

Dear Ross, I make really good money running my own business, but the recession hit us hard, and we cannot seem to dig our way out of the debt we accumulated from 2008 to 2010. I owe Revenue Canada over $60,000 in back taxes, and we have over $120,000 in unsecured credit. Good thing is …

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Are RRSP’s overstated

Hi Ross: My 18yr old goes into CIBC in Victoria requesting an RRSP account to deposit $50/month Bank says “No, you should get a TFSA” Kid leaves confused because Mom taught her to get RRSP @ 18 but the bank says Mom is wrong. Now what do I tell her? Thanks, Mandy. From Ross: Mum …

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$2.8 million investment property

Two weeks ago I received an excited phone call from James, a forty something family doctor living in Richmond Hill with his wife, an ER nurse at a local hospital.  They had discovered a beautiful 7,900 square foot house in Vaughan, not long reduced in price from $3.5 million to $2.8 million. James and Rachel …

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Turn RRSP contribution room into dollars

This is really simple – and is best used only by someone who has a husky taxable income in 2011, and expects a radically lower income in 2012. All you do is make a very large contribution before February 29, 2012; generate the associated refund when you file your taxes; and then withdraw the same …

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