Comments on: Last Minute Tax Advice

By: Greg

Greg — Sun, 10 Apr 2011 22:23:07 +0000

I am a canadian resident who lived and worked in the USA from 1997 to 2005. I purchased stocks in our company, a US company from 2000 to 2005. I am now selling some of the shares. Is the ACB (cost) of my stock the value of the stock when I moved back into Canada, or the actual cost when I purchased them.

By: Four Pillars

Four Pillars — Wed, 15 Apr 2009 21:17:30 +0000

I agree with Cheap – you should declare all the income.

In Canada you aren’t a dependent but your hubbie can get the spousal credit which is prorated depending on your income (it gets zeroed out when you hit about $10k in income).

By: Mr. Cheap

Mr. Cheap — Wed, 15 Apr 2009 20:09:09 +0000

Debbie: I am not an accountant, tax lawyer, government employee or anyone else who’s opinion should be taken very seriously. My understanding is the first dollar of income you make in your used toy business must be declared (if you live in Canada you don’t have to register for a GST number until you are no longer a small provider – http://www.moneysmartsblog.com/2008/01/02/how-to-start-a-business/).

Your husband’s ability to declare you as a dependant will shrink as your income grows. That being said, even if you’re paying more taxes, remember that your HOUSEHOLD will be earning more money! There’s no reason to avoid income because a part of it will be paid in taxes. With progressive tax systems, the situation never occurs where you earn more money, resulting in higher taxes that LOWERS your take home pay.

As well, since you’ll have a low income, you’ll pay a very low tax rate on any earnings (potentially nothing). Your take home cash will be far more than any reduction in his tax deduction for you as a dependant.

Good luck with your business!

By: Debbie

Debbie — Wed, 15 Apr 2009 18:57:41 +0000

Hi,
My question is related to earning additional income while being a stay at home mom. I am about to quit my job to stay at home with my little ones. I’d like to continue to make a little money on the side (buying and selling used toys) but am concerned about the tax implications. First of all, how much money can I earn before I have to declare that income? Secondly, how will any income I earn affect my husband’s ability to declare me as a dependant?
Please advise.. thanks,
Debbie

By: Mr. Cheap

Mr. Cheap — Wed, 06 Aug 2008 03:38:05 +0000

Sean: If the Canada Revenue Agency told you that over the phone, I’d say its pretty safe to use (although they expressly say that advice over the phone isn’t binding, even if you’re told something it MAY turn out to be challenged later – the plus side is they wouldn’t view it as tax evasion, since you were doing what they recommended, all they’d do is make you pay back whatever the tax savings was plus interest).

Maybe call them again and ask what evidence you need?

By: Sean

Sean — Wed, 06 Aug 2008 01:40:05 +0000

My question is regarding moving within Canada and what is a valid move. I was given advice over the phone from Revenue that if a spouse moves to be closer to family that are sick, then it would be considered a valid move, and we would be able to claim costs associated with that move. Is this true, and if so, do we need to provide proof of a sickness etc. Thanks.

By: Khrystyna

Khrystyna — Wed, 30 Apr 2008 22:35:50 +0000

You’ll have to be very patient to get through to CRA last minute; also, although polite folks, their tax knowledge levels vary greatly: you’ll often find yourself getting different answers from different reps to the same question. Though this may help you along, if used creatively. Too late for this year, but best to start early, read all relevant CRA publications, call them often, and, yeah, DIY! (So easy to say!) Best wishes to all!

By: Mr. Cheap

Mr. Cheap — Mon, 28 Apr 2008 20:18:39 +0000

Quick Lunar Cop: Good point. I like to keep things old school .

By: Quick Lunar Cop

Quick Lunar Cop — Mon, 28 Apr 2008 17:06:26 +0000

Great article, but you might want to update your terminology… The Canada Revenue Agency (CRA) hasn’t been called ‘Revenue Canada’ in quite a while!

On November 1st, 1999, Revenue Canada became the Canada Customs and Revenue Agency.

On December 12, 2003, the Canada Customs and Revenue Agency (CCRA) became the Canada Revenue Agency (CRA).

By: NeverStopBuying.com

NeverStopBuying.com — Sat, 26 Apr 2008 00:38:10 +0000

Benefits of having a brother who is an accountant. Any tax question, just ask him

It is my 1st year to pay CRA, instead of CRA pays me though. -$400 instead of +$2000 tax refund, sigh…