Consider this…
As is the standard in much of Canadian Law, the CRA uses a “reasonableness” test to determine their decisions as they relate to business income. In fact, “reasonable” and “reasonably” shows up an astounding 1,219 times in our Income Tax Act. Before you plan on doing something, consider for example whether or not the CRA would think you “reasonably” expected a profit from your undertaking.
Have questions? Give us a call at 905-571-2665.
Have childcare expenses? You can claim amounts paid to daycare centres, caregivers, day camps, and boarding schools. The amount you can claim is up to 2/3 of your earned income or the actual amount you paid for childcare – whichever is lower. The maximum claim per year is $8,000 per child under 7, and $5,000 per other eligible child.
Have questions? Give us a call at 905-571-2665.
Did you know?
If you ever receive a bonus, you can defer it up to 3 years. This may make sense for you, if you expect the bonus will put you in a higher tax bracket for the year you receive it.
Have questions? Give us a call at 905-571-2665.
