Common questions I’m asked:
When are my taxes due?
For most people, the deadline for filing and paying your taxes is April 30.
If you or your spouse is self-employed, you have until June 15th to file your income tax return. However, if you owe taxes, your payment is still due April 30th. Many self-employed people are required to prepay their taxes in quarterly instalments, so come April 30th, they’re all paid up. When in doubt, aim for the April 30th deadline.
How much money should I set aside for taxes?
When your personal circumstances change, sometimes your taxes do too. Whether you start renting your basement suite, quit your job to freelance or you retire, prepare yourself to owe tax at the end of the year. Rental, self-employment and investment income typically does not have tax withheld at source, and often results in a tax bill at year-end.
We can estimate your annual income and tax liability to help you figure out how much you’ll need to set aside.
What do these terms mean?
Foreign Property
If you own foreign property that cost $100,000 or more, you make an annual disclosure to Canada Revenue Agency.
Funds held outside Canada, shares of non-resident corporations, debts owed to you by a non-resident, interests in non-resident trusts, foreign real estate and other property outside Canada are all considered foreign property subject to the disclosure requirement.
Some foreign property is excluded: foreign investments held in your RRSP accounts or TFSAs, property used exclusively for personal purposes (like a vacation home or artwork), and property used to operate a business.
Income Splitting
Income splitting is a tax-planning strategy that attributes income from a family member who pays tax in one of the higher tax brackets to one whose income falls into a lower bracket.
Spouses can elect annually to split pension income to optimize their combined taxes.
