Tradesperson’s Tools Deduction by Accountant Brampton

You may be able to deduct the cost of eligible tools you  bought in 2010 to earn employment income as a tradesperson at Accountant Brampton. This cost includes any GST and provincial sales tax, or HST that you paid. You may be able to get a rebate of the GST/HST you paid.

An eligible tool is a tool (including associated equipment such  as a toolbox) that:

■ you bought to use in your job as a  tradesperson and was not  used for any purpose before you bought it;

■ your employer certified as being necessary  for you to provide  as a condition of, and for use in, your job as a tradesperson;  and

■ is not an electronic communication device  (like a cell phone)  or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating, or calculating).

Your  employer has to complete and sign Form T2200, Declaration of Conditions of Employment. Have your employer complete  question 11 of Part B of the form to certify that the tools  being claimed were bought and provided by you as a condition  of your employment as a tradesperson. Attach to Form T2200 a list of the tools you are claiming, as well as the related receipts. You do not have to include Form  T2200, your receipts, or your list of tools with your return, but keep  them in case CRA ask to see them.

 

For more information:

http://www.cra-arc.gc.ca/menu-e.html

Children’s Fitness Tax Credit by Accountant Vaughan

Starting with the 2007 tax year, the Government of Canada allows a non-refundable tax credit based on eligible fitness expenses paid by parents to register a child in a prescribed program of physical activity, Accountant Vaughan.

The following information is for parents of children who are, at the beginning of the year in which an eligible fitness expense is paid, under the age of 16 or, if eligible for the disability tax credit, under the age of 18.
If you are part of an organization that provides programs of physical activity for children, please see Information for organizations providing prescribed programs of physical activity.

The children’s fitness tax credit lets parents claim up to $500 per year for eligible fitness expenses paid for each child who is under 16 years of age at the beginning of the year in which the expenses are paid.
If a child qualifies for the disability tax credit, parents can claim up to $500 per year in eligible fitness expenses paid for the child who is under 18 years of age at the beginning of the year. Also, if at least $100 in eligible fitness expenses has been paid for the child, an additional amount of $500 can be added to the eligible fitness expenses actually incurred.
As with most other non-refundable tax credits, the children’s fitness tax credit is calculated by multiplying the total expense by the lowest marginal tax rate (the rate for 2007 is 15%).

An eligible fitness expense must be for the cost of registration or membership of an eligible child in a prescribed program of physical activity. Generally, such a program must:
• be ongoing (either a minimum of eight consecutive weeks long or, for children’s camps, five consecutive days long);
• be supervised;
• be suitable for children; and
• include a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of: muscular strength, muscular endurance, flexibility, or balance.
Under the Income Tax Regulations, the definition of physical activity includes:
• horseback riding; and
• if the child is eligible for the disability tax credit, activities that result in movement and in an observable use of energy in a recreational context.

For more information:

http://www.cra-arc.gc.ca/menu-e.html

Registered Charity by Accountant GTA

ENGAGE ONLY IN ALLOWABLE ACTIVITIES– A registered charity is allowed to carry out its charitable purposes both inside and outside Canada in only two ways: by carrying on its own charitable activities, and

Charity Accountant Woodbridge

by gifting to qualified donees. A registered charity must maintain direction and control over its activities (whether carried out by the charity, or by an agent or contractor on its behalf) and must not engage in prohibited political activities or unrelated business activities, Charity Accountnat GTA.

KEEP ADEQUATE BOOKS AND RECORDS – A registered charity must keep adequate books and records for the prescribed time period, in either English or French, at an address in Canada that is on file with the Canada Revenue Agency (CRA).
ISSUE COMPLETE AND ACCURATE DONATION RECEIPTS – A registered charity may only issue official receipts for donations that legally qualify as gifts. An official receipt must contain all the information specified in Regulation 3501 of the Income Tax Act. See sample receipts.
MEET ANNUAL SPENDING REQUIREMENT (DISBURSEMENT QUOTA) – A registered charity must spend the minimum amount calculated for its disbursement quota each year on its own charitable activities, or on gifts to qualified donees (for example, other registered charities).

For more information:

http://www.cra-arc.gc.ca/menu-eng.html

First-time Home Buyer’s Tax Credit (Accountant Woodbridge)

You can claim an amount of $5,000 for the purchase of a  qualifying home made in 2010, if both of the following  apply: 

■ you or your spouse or common-law partner acquired a
qualifying home; and
■ you did not live in another home owned by you or your
spouse or common-law partner in the year of acquisition
or in any of the four preceding years (first-time
home buyer).

You do not have to be a first-time home buyer if you are  eligible for the disability amount or if you acquired the  home for the benefit of a related person who is eligible for the disability amount at Accountant Woodbridge. However, the purchase must  be made to allow the person eligible for the disability  amount to live in a home that is more accessible or better  suited to the needs of that person. For the purposes of  the home buyers’ amount, a person with a disability is  an individual who is eligible to claim a disability amount
for the year in which the home is acquired, or would be  eligible to claim a disability amount, if we do not take  into account that costs for attendant care or care in a  nursing home were claimed as medical expenses on lines  330 or 331.
A qualifying home must be registered in your and/or your  spouse’s or common-law partner’s name in accordance  with the applicable land registration system, and must be  located in Canada. It includes existing homes and homes  under construction. The following are considered
qualifying homes:
■ single-family houses;
■ semi-detached houses;
■ townhouses;
■ mobile homes;
■ condominium units; and
■ apartments in duplexes, triplexes, fourplexes, or
apartment buildings.

For more information:

http://www.cra-arc.gc.ca/menu-e.html

Tax-Free Savings Account (TFSA) (Income Taxes Woodbridge)

Starting in 2009, a tax-free savings account (TFSA) is a new way for residents of Canada to set money aside tax free throughout their lifetimes, Income Taxes Woodbridge.

Who is eligible for a TFSA?
Any individual (other than a trust) who is at least 18 years old,
who is a resident of Canada, and who has a valid social insurance number (SIN) can be a holder* of a TFSA.

How to establish a TFSA
To establish a TFSA, you must contact your financial institution,  credit union or insurance company (issuer*). As the TFSA holder, you will need to provide the issuer with your SIN and date of birth so that the issuer can register your qualifying arrangement* as a TFSA. Failing to provide this information or providing incorrect information may cause the registration of the TFSA to be denied, resulting in possible tax consequences.
You can set up a self-directed TFSA if you prefer to build and  manage your own investment portfolio by buying and selling a variety of different types of investments. If you are considering this type of arrangement, you may want to consult with your financial institution.

Note
An individual can have more than one TFSA at any given time, as long as the total amount contributed to all the accounts during the year does not exceed the individual’s available TFSA contribution room for that year.

Types of investments allowed in a TFSA
Generally, the types of investments that will be permitted in a  TFSA are the same as those permitted in a registered retirement  savings plan (RRSP). This would include mutual funds,  securities listed on a designated stock exchange,  Guaranteed Investment Certificates (GICs), bonds, and certain  shares of small business corporations.

For more Information:

http://www.cra-arc.gc.ca/menu-e.html

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