Vehicle Log Book (May 8, 2012 Update)

May 8, 2012 in Deductions with 0 Comments

During the last few weeks, I’ve seen several taxpayers with misunderstandings about record keeping for a vehicle.

The myths

Image by © Royalty-Free/Corbis

Here are some myths about a vehicle logbook:

  • If you only drive in town, you don’t need a logbook.
  • If your trips are all under 30 minutes, you don’t need a logbook.
  • You only need to document the trips during the day. (OK, this one may be not be a myth for some people but it is for most people.)

Failure to maintain a logbook is a serious risk for any taxpayer.

It is the equivalent to your driving without your license and ownership papers.

Most of the time you won’t be stopped. But it may happen.

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Filing Extension Forms

April 21, 2012 in Tax with 0 Comments

Some people visiting this site are looking for the form to request a filing extension for their 2011 Canadian Income Tax Return. Those seeking a Canadian extension form will not find one.

The IRS has a form, Form 4868, which allows for a US tax filer to request a 6 month extension to filing their personal income tax return. US tax filers located in Canada have an automatic extension of two months but I have generally recommended that US tax filers obtain the full six months by filing the 4868 form on time.

Canada has the following due dates for the personal tax returns:

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When can you apply for OAS/GIS under the new rules?

April 4, 2012 in Planning with 0 Comments

The following table shows when you can apply for OAS / GIS under the new rules announced by the latest budget.

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Parents or Child – Whose tax return is first?

March 10, 2012 in Tax with 0 Comments

When preparing tax returns for a family, it is important to prepare the tax returns in the correct order.

If you have children attending university or college, their tax returns must be completed first in most cases. If the student worked during the year but has not received their T4 slip by mid-March, the student must contact their old job to get the form. You will also need the form T2202A which is, for most post-secondary educational institutions, available for download from their website. Form T2202A contains the needed information for completing Schedule 11 for the student.

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Non-Resident Conducting Business in Canada

March 5, 2012 in Non-Resident with 0 Comments

It is possible that you are a non-resident to Canada who is conducting a business in Canada. Typical scenarios of non-residents to Canada conducting business in Canada include individuals presenting speeches to Canada but does not include a speaker who is an employee (W-4) who presents a speech in Canada. In that latter case, the employer is the non-resident who is conducting the business.

In a number of these cases, the taxpayer finds themselves in receipt of a T4A-NR with Canadian taxes withheld and is wondering how to get some of that money back.

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Site Statistics for February 2012

March 1, 2012 in Website with 0 Comments

Information about this website’s readers during the last month.

Who are the readers

The readers are (based on advertiser metrics) 54% male, 47% are 18 to 34, 36% are 35 to 49, 13% are 50 or older, 70% don’t have kids, 54% have university or higher education level, 23% have an income between $30k and $60k, 44% have an income between $60k and $100k and a further 20% have more than $100k in annual income.

Where are the readers

The readers appear clustered in four areas – Windsor, ON to Quebec City,  Vancouver area, Carolina (North and South), USA and California.

Caution: I only pull up the last 100 visitor locations so this is the last few days readers only.

How do the readers arrive

68% from Google, 4% other search engines and 28% come directly (which includes those arriving via Twitter and linkedin.com)

What are readers looking for (Top Ten Search Topics)

(The topic, not necessarily the exact terms used, to locate this website.)

  1. Nortel
  2. Parklane
  3. CPP
  4. Canada Post Pay Equity
  5. Indian
  6. Hope Church of God
  7. RRSP
  8. Foreign Property
  9. Vehicle Logbook
  10. IRS and Canadian Residents

 What are readers looking at (Top Ten Pages)

  1. Parklane Financial Group Limited Class Action Suit
  2. Calling previous owners of Nortel stock
  3. CPP/QPP and OAS
  4. Tim Parris
  5. HEPA Air Filter
  6. Canada Post Pay Equity Win
  7. 2012 CPP/QPP Payments Increase
  8. Misuse of the SUM function
  9. Are Evernote records acceptable for the Canada Revenue Agency?
  10. Secure File Transfer
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Tuition Paid

February 28, 2012 in Tax with 0 Comments

A common error for parents preparing their children’s income tax returns is to use the amount of tuition that was on the cheque written to the University or College in the fall as tuition paid.

The Income Tax Act requires that the tuition paid be accrued to the two school terms and the claim is for the calendar, not school, year. As a result, the claim made is incorrect.

Most schools in Canada use the provided tax slip to identify the correct amounts to be claimed for taxes. This slip is not mailed to the student any longer but is available through most school portals for downloading and printing. Ask your child/student to access the school portal (the same one where the student typically selects the course load) and locate the option for tax information. The form needed is the T2202A and, if you are resident in Quebec, the Rélève 8. It is important to use the Official Form and not the unofficial version that displays the information but is unacceptable to the tax department in the event that you are later asked to prove your claim.

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Securely transfer files

February 24, 2012 in Records/Documents with 0 Comments

Safe

A new option on my website is the Secure File Transfer available on the top menu (black bar with white lettering.)

This allows clients to securely transfer files to me without using email. All files transferred are uploaded through a third party interface using the industry standard 128-bit SSL encryption. This is the same level of security used by banks to handle your money, so you know that it is considered safe. Once uploaded, the file is checked for viruses and other nasties before it is transferred to my computers.

You may also access the Secure File Transfer by entering the Safe below.

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Do you own anything outside of Canada?

February 20, 2012 in Foreign Taxes with 0 Comments

Most people know that Canada’s tax system requires Canadian Taxpayers to declare and pay tax on their World-Wide Income. This is similar to most other tax systems in the world.

However, were you aware that you also have to declare assets in certain cases?

Hidden on the top of your tax return (T1 General) is a question that every taxpayer must answer. The question is:

Did you own or hold foreign property at any time in 2011 with a total cost of more than CAN$100,000? (see the “Foreign income” section in the guide for details) If so, complete and attach form T1135 to your return.

For anyone filing an electronic return, they must submit the T1135 as a paper form – it can’t be electronically filed.

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The Canada Revenue Agency revokes the registration of Escarpment Biosphere Foundation Inc. as a charity

February 17, 2012 in Tax with 0 Comments

The Canada Revenue Agency (CRA) revoked the charitable registration of Escarpment Biosphere Foundation Inc., a Toronto area charity. The notice of revocation was published in the Canada Gazette with an effective date of February 11, 2012.

On January 3, 2012, the CRA issued a notice of intention to revoke the charitable registration of Escarpment Biosphere Foundation Inc., in accordance with subsection 168(1) of the Income Tax Act. The letter stated, in part, that:

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