Personal Finance

Tax time! I'm a public accountant, so ask me, I'll try to respond frequently

  • Last Updated:
  • Oct 11th, 2019 7:45 pm
Sr. Member
Nov 30, 2011
953 posts
357 upvotes
GTA
Question about Moving Expenses.
My 2017 T1-M has a carry-forward on line 24.
Where do I put that amount on my 2018 Tax Return?
Newbie
Nov 20, 2015
2 posts
Burlington, ON
Hi Everyone,

I will start off by admitting that I haven’t consulted with a tax professional yet. I will definitely do so, however wanted to check in here to see if I was missing something…

I am looking to use RRSP contributions to lower my taxable income (Line 236) of mine and my wife’s tax returns in order to (hopefully) do the following:
1. Build a retirement portfolio;
2. Lower the taxes we pay;
3. Qualify for Child Care Subsidy, and;
4. Increase Child Benefits.

Our situation is as follows:
She - currently on EI (mat leave) making the maximum amount, roughly 25k/year (net)
Me - Working full time making roughly 80k/year (gross)
Child 1 - 18 months old and in full time daycare costing approx. $1500.00/month.
Child 2 - Due in February 2019

2017 Net income (Line 236)
She - roughly $40k
Me - roughly $62k

2018 RRSP deduction limit
She - roughly $57k
Me - roughly $44k

2017 Child Benefits (one child)
$235/month.

2018 child benefits (two children)
Expecting to be approximately $500/month.
https://www.canada.ca/en/revenue-agency ... lator.html

Now that we have that out of the way, if I were to make a 60k (total) lump sum contribution to our RRSP accounts by way of an RRSP loan, I have calculated the following:

Child Benefits with two kids: $940.10
Ontario child benefit monthly amount - $89.12
GST/HST credit quarterly amount - $139.67
Ontario trillium benefit monthly amount - $78.60
Ontario energy and property tax credit monthly amount - $25.53
Ontario sales tax credit monthly amount - $53.07

Total Benefits = $13,852.52/year
RRSP Refund = $15,391
Daycare Subsidy received would be roughly $15,399.96
http://webaps.halton.ca/forms/childcare ... ulator.cfm

New Daycare Payment = $216.67/month (Remainder Covered by Regional Subsidy)

Total Return through Government credits/subsidy/refunds = $44,642.52
Leaving us out of pocket $15,357.48 plus any applicable loan interest.

Have I missed something or is this pretty accurate? If 60k is going to cost us 15k plus interest, why wouldn’t everyone with contribution room be doing this?

Thank you very much for any assistance.
Deal Addict
Oct 19, 2007
1987 posts
727 upvotes
I'm a member of a regulatory professional body/college which I pay an annual fee to maintain my license/registration. I JUST found out yesterday from a coworker that when I log in to the college's website, there are tax receipts which I can use towards my income tax filing! Would I be able to claim the previous years (2017 and earlier)????
Newbie
Dec 7, 2014
39 posts
2 upvotes
Ottawa, ON
I have a maxed out TFSA with about $70k in it and an RRSP with about $28k in it. I am a Canadian citizen but thinking about moving shortly to the UK for maybe 1-2 years temporarily. I hear this may impact my taxes and these registered accounts. Can you explain how this works and what I can do. If it matters, my funds are with WealthSimple.
Deal Addict
User avatar
Feb 1, 2006
2596 posts
656 upvotes
Ontario
minimalist wrote:
Dec 21st, 2018 12:00 pm
I'm self employed and have a question about claiming a credit card annual fee as a business expense.

I understand that I can definitely claim this on a "Business credit card" like the Amex SPG Business Card providing I charge business expenses to it.

My question is if I use a regular, non-business credit card for both personal and business expenses (I have very few, less than 5 per year) can I claim the annual fee as above?
Bump. Does anyone know the answer to this?
Cards:HSBC WE MC 1.5%/3% travel 0 FX MC acceptance 31 day med AF $49
CTC WE MC 3% grocery, 3.54% CTC, RA, billpay
Bank: Alterna (2%+, no fees)
Brokers: IB (For. stocks/low comm)/Reg. RBCDI(service, USD)
Member
Nov 24, 2015
300 posts
186 upvotes
Toronto, ON
minimalist wrote:
Feb 8th, 2019 3:31 pm
Bump. Does anyone know the answer to this?
I don't know for sure, but logically speaking, at most you should be able to claim as business expense, is the pro-rated fee. Based on the business transactions out of the total number of transactions on the card during the year.
Last edited by Natasha321 on Feb 9th, 2019 1:07 pm, edited 1 time in total.
Deal Addict
User avatar
Feb 1, 2006
2596 posts
656 upvotes
Ontario
Natasha321 wrote:
Feb 8th, 2019 5:30 pm
I don't know the answer, but logically speaking, at most you should be able to claim as business expense, is the pro-rated fee. Based on the business transactions out of the total number of transactions on the card during the year.
Thanks for your reply.

What I'm now thinking of is using a so called "personal credit card" for only business expenses.

Let me explain. Amex has both the SPG and SPG business credit cards. Annual fees are $120 for SPG and $150 for SPG Biz. Biz version has slightly higher earning categories but they don't benefit me.
To save the $30 I'm thinking of getting the SPG and only running business expenses through it.

Do you think I'd be able to deduct the $120 annual fee seeing that I'm only running biz expenses through it despite it not saying "Business" on the card plastic?
Cards:HSBC WE MC 1.5%/3% travel 0 FX MC acceptance 31 day med AF $49
CTC WE MC 3% grocery, 3.54% CTC, RA, billpay
Bank: Alterna (2%+, no fees)
Brokers: IB (For. stocks/low comm)/Reg. RBCDI(service, USD)
Deal Fanatic
User avatar
Nov 19, 2004
8587 posts
1623 upvotes
Cambridge, ON
Seks wrote:
Feb 8th, 2019 11:05 am
I'm a member of a regulatory professional body/college which I pay an annual fee to maintain my license/registration. I JUST found out yesterday from a coworker that when I log in to the college's website, there are tax receipts which I can use towards my income tax filing! Would I be able to claim the previous years (2017 and earlier)????
Yes. You would have to go back and file an adjustment for each year.
Deal Addict
Jul 15, 2009
1556 posts
652 upvotes
ryareg wrote:
Jan 16th, 2019 11:57 pm
Hi Everyone,

I will start off by admitting that I haven’t consulted with a tax professional yet. I will definitely do so, however wanted to check in here to see if I was missing something…

I am looking to use RRSP contributions to lower my taxable income (Line 236) of mine and my wife’s tax returns in order to (hopefully) do the following:
1. Build a retirement portfolio;
2. Lower the taxes we pay;
3. Qualify for Child Care Subsidy, and;
4. Increase Child Benefits.

Our situation is as follows:
She - currently on EI (mat leave) making the maximum amount, roughly 25k/year (net)
Me - Working full time making roughly 80k/year (gross)
Child 1 - 18 months old and in full time daycare costing approx. $1500.00/month.
Child 2 - Due in February 2019

2017 Net income (Line 236)
She - roughly $40k
Me - roughly $62k

2018 RRSP deduction limit
She - roughly $57k
Me - roughly $44k

2017 Child Benefits (one child)
$235/month.

2018 child benefits (two children)
Expecting to be approximately $500/month.
https://www.canada.ca/en/revenue-agency ... lator.html

Now that we have that out of the way, if I were to make a 60k (total) lump sum contribution to our RRSP accounts by way of an RRSP loan, I have calculated the following:

Child Benefits with two kids: $940.10
Ontario child benefit monthly amount - $89.12
GST/HST credit quarterly amount - $139.67
Ontario trillium benefit monthly amount - $78.60
Ontario energy and property tax credit monthly amount - $25.53
Ontario sales tax credit monthly amount - $53.07

Total Benefits = $13,852.52/year
RRSP Refund = $15,391
Daycare Subsidy received would be roughly $15,399.96
http://webaps.halton.ca/forms/childcare ... ulator.cfm

New Daycare Payment = $216.67/month (Remainder Covered by Regional Subsidy)

Total Return through Government credits/subsidy/refunds = $44,642.52
Leaving us out of pocket $15,357.48 plus any applicable loan interest.

Have I missed something or is this pretty accurate? If 60k is going to cost us 15k plus interest, why wouldn’t everyone with contribution room be doing this?

Thank you very much for any assistance.
I haven't checked your numbers but they sound plausible: 75% METR at your income level and family situation. Make sure you're comparing benefits with the RRSP contribution against benefits without the contribution. For example, you'd probably still get some of the CCB without it.

One other thing you can consider is to take the full statutory parental leave for both parents, a year for the mother plus another 8 months or so for the father. You will not get paid, but at a 75% METR, that's a loss of only a quarter of your salary, and you can save a lot in daycare costs looking after two children. This takes you to age 20 months for the younger child, and daycare gets much cheaper after 18 months of age and much easier to find spots. And of course only you can decide the value of the time and attention that you can give to your children.
Member
Nov 24, 2015
300 posts
186 upvotes
Toronto, ON
minimalist wrote:
Feb 8th, 2019 7:50 pm
Thanks for your reply.

What I'm now thinking of is using a so called "personal credit card" for only business expenses.

Let me explain. Amex has both the SPG and SPG business credit cards. Annual fees are $120 for SPG and $150 for SPG Biz. Biz version has slightly higher earning categories but they don't benefit me.
To save the $30 I'm thinking of getting the SPG and only running business expenses through it.

Do you think I'd be able to deduct the $120 annual fee seeing that I'm only running biz expenses through it despite it not saying "Business" on the card plastic?
Yes. You should be fine claiming that annual fee when that card is used exclusively for business expenses. CRA wouldn't mind what the card says on it.

As they say....it's substance over form.
Newbie
Feb 10, 2018
26 posts
7 upvotes
Hello. I own a principle residence and bought a 50% interest in asecond property to fix and rent. Long story short renovated but never rented prior to selling. Took a loss with purchase price plus renovations minus selling price. How would i report on taxes as was a loss
Member
Feb 13, 2011
255 posts
28 upvotes
Hi there, If I make a contribution to my spouse's RRSP, do I report that on my tax return or on my spouse's return? (i.e. whose income can I deduct that from?) Thanks!
Deal Addict
Mar 3, 2018
1008 posts
773 upvotes
GTA
User704347 wrote:
Feb 9th, 2019 1:15 pm
Hello. I own a principle residence and bought a 50% interest in asecond property to fix and rent. Long story short renovated but never rented prior to selling. Took a loss with purchase price plus renovations minus selling price. How would i report on taxes as was a loss
Your question essentially is whether this is a capital loss or a business loss. Your original intention was to renovate and rent which would of supported a capital loss if carried out. You may have a strong case though to support a business loss. For example if you had a profit CRA would be arguing you were in the business of renovating and selling properties since you never rented. As such I would be claiming a business loss using schedule T2125.
Deal Fanatic
User avatar
Nov 19, 2004
8587 posts
1623 upvotes
Cambridge, ON
rpw_1 wrote:
Feb 9th, 2019 1:50 pm
Hi there, If I make a contribution to my spouse's RRSP, do I report that on my tax return or on my spouse's return? (i.e. whose income can I deduct that from?) Thanks!
You report contributions to a spousal RRSP. It is deducted from your income and uses your contribution space.

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