Ashfaq Ahmed's Blog
Carefully Balance Allocations
If you are retired and working with your accountant on your 2010 income taxes, don't forget to take advantage of pension-splitting options.
Anyone who is eligible for the pension income tax credit can transfer as much as 50 per cent of qualifying income to the tax return of a lower-income spouse or common-law partner. This is a form of income splitting, which generally allows a greater portion of family income to be taxed at a lower rate and results in a higher level of after-tax income. The tax savings are largest when one individual has little to no income Pension splitting sidesteps attribution rules, where transferred assets are generally attributed back to, and taxed in the hands of, the person transferring the assets.
Tax Return
Can you do your tax return yourself!
The answer to the this question depends on what do you mean by “do yourself”
If you mean fill out the tax forms, of course you can fill out forms and by doing that you will know your tax bill, which can lead you to make smart decisions about your finances. Seeing the magic of RRSPs on you tax bottom line will convince you how RRSP make sense.
Tax Tips and Traps
While it is hard for middle class families in Canada to maintain their standard of living in such a highly taxed environment, however, there is some tax planning opportunities available. Some are incentives inserted by the government to induce a healthy fiscal outcome both for economy and families and some are available through arranging ones financial affairs in such a manner to avail these opportunities. Here are some of such opportunities. However, as the title suggests beware of traps as well, needless to say some of these require professional advice to avoid traps.
The Ins and Outs of GST
Most businesses, at least those with annual worldwide sales of more than $30,000, must register for GST, but even if registration isn't mandatory for you or our business, it may be a good idea to sign up voluntarily.
expenses as the portion of your home and vehicle that are used for business, equipment purchases, accounting bills, postage, and parking. By registering, you can claim back GST you've paid or owe on taxable goods and services. This, however, doesn't include goods or services you purchase for personal use. (See right hand box for GST registration requirements.)
