Watts Advisors Accounting & Tax Blog
Principal Residence Exemption 0
April 13, 2012Recently I have received a few questions about the tax rules surrounding your principal residence. The general idea behind the Principal Residence Exemption is that you are not taxed on gains you realize when you sell your residence. But like many tax guidelines in Canada the rules are more complicated than that to ...
Read MoreDeductible Employment Expenses 0
March 27, 2012There are a few instances where you are able to deduct expenses against employment income. The content of this blog will just cover the most common expenses of standard employment arrangements. There are specialized rules for commission employees and other unique circumstances as well as more specialized expenses that will ...
Read MoreCRA Giving Out 20% Penalty for Missing Information 0
March 20, 2012Most people aren’t aware of one of the harshest penalties that the CRA (Canada Revenue Agency) gives out. This penalty doesn’t necessarily relate to fraud or tax evasion, but can occur if someone is simply forgetful or unorganized. Over the last couple of years the CRA has started charging a 20% ...
Read MorePersonal Tax Return Checklist 0
March 6, 2012Below is a checklist that I have put together to help my clients organize and compile the information needed to complete their personal tax return. Slips All information Slips (T4, T3, T5, T4E, T4A, T4AP, T4RSP, T4RIF, T5013) Old Age Security and CPP benefits Other Pensions and Annuities Employment insurance benefits Social assistance payments Workers compensation Benefits RRSP ...
Read MoreShareholder Loans 0
March 1, 2012One area of confusion that some clients can have is why there are strict rules about borrowing money from the company that they own. The Canada Revenue Agency (CRA) has developed a set of rules strictly regulating how an individual can borrow money from a company that they own. Why? These rules ...
Read MoreRRSP’s – An Overview 0
February 15, 2012With two weeks left until the 2011 RRSP contribution deadline on February 29, 2012 it seemed like a good time to blog about some common client questions I receive on the subject, “Why should I contribute to an RRSP?”, “What are the benefits of contributing to my RRSP?” or, “Should ...
Read MoreEmployee vs. Contractor 0
February 10, 2012Employment Income vs. Business Income One question that I often get from clients is related to whether individuals are considered employed or self-employed. This determination has a significant impact on taxable income, the ability to deduct certain expenses, and the requirement to make payroll remittances such as CPP and EI. Regardless ...
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