Tax Tips by Accountant in Bolton

  • Your RRSP will be charged a one per cent penalty tax for every month that your foreign content exceeds 30 per cent of its book value. To provide a cushion against accidentally exceeding this limit, you may want to keep your foreign content below 30 per cent according to accountant in bolton.
  • Special mutual funds use derivatives to replicate the performance of foreign mutual funds and international stock indices. They are not considered to be foreign property. As a result, the holder of such funds can effectively increase their foreign investment exposure to 100 per cent of their RRSP. Consult your accountant in bolton before investing.
  • In cases of hardship, locked-in funds can sometimes be withdrawn. The administrator of your plan or a accountant in Bolton can advise you of the rules that are applicable in Ontario.
  • When deciding whether to convert your RRSP into a RRIF, retirement annuity or a combination of both, there are a number of factors to consider. If you are holding a RRIF, for instance, you are able to remain active in making investment decisions. With an annuity, however, you are transferring autonomy of the underlying investment portfolio to financial professionals who, in turn, assume the risk and provide you with a steady income for a fixed period of time or the rest of your natural life. Also, while you can convert all or part of your RRIF funds to a  retirement annuity at any time, once annuities have been established, they are permanent. If you’re receiving Old Age Security pension guarantee income supplement, any income you earned through RRSP or RRIF will affect your Old Age Security guarantee income supplement. Please ensure you withdrawal all your RRSP and RRIF before you receive Old Age Security pension in order to receive maximum benefits of pension by Accountant in Bolton.
Accountant Bolton

Accountant Bolton

  • The CRA now recognizes registered pension plans that provide survivor benefits to same sex partners.
  • Legal fees incurred to establish child support are deductible. Should a portion of the legal fees paid in a divorce settlement be for obtaining child support, the onus is on the taxpayer to establish that proportion of directly related fees. Once a settlement with  respect to child support has been established, however, the legal costs associated with a subsequent court challenge to change that amount cannot be deducted for tax purposes.
  • Legal costs incurred to enforce pre-existing rights to interim or permanent support amounts or to defend against the reduction of support payments (whether child support or otherwise) are both deductible, provided they are not incurred against an estate by accountant in bolton
  • Legal fees incurred in establishing the right to spousal support amounts are not deductible because such costs are for personal or living expenses by accountant in Bolton.
  • The cost of summer day camps and sports schools may also qualify as deductible child care expenses depending on factors such as the child’s age, the program’s sophistication and whether such expenses  are incurred to allow the parent or supporting person to carry on earning a living. This could also be claimed as Children Fitness Tax credit up to $500 per child.
  • Although supporting parties must be earning a living in order to deduct child-care expenses, this deduction might still be available during periods in which temporary, extenuating circumstances, such as a strike or other labour stoppage, prevent you from working.
  • For more information please see your Accountant at Bolton or call us at 905-794-8283.