1. Grey Areas
You've been doing taxes forever and you're pretty good at it. Actually, you're darn good. You not only do your own but you also do 17 other people's return. But this year things have changed. Up until now, you've only had T4 income, a few investments, baby sitting and medical expenses. Now you have a kid at college, the spouse is retired and your mother is in a nursing home. Are you familiar with the grey areas around who can claim what? Did you know that you can claim those medical expenses for your child's braces and get back a bigger chunk if they are a full time student? What are the deductions that you are entitled to when you have an ageing parent who needs your help? Income splitting is a great option - can you split your CPP also?
2. Change of Marital Status in the Year
You separated from your spouse this past year and you have more than one child. Where does the child live? Was your spouse a low income spouse? Can you still claim her now that you are separated? Can you claim one of the children as your eligible dependent if she claims one also? There are options in the year of marital change. Do you know what they are?
3. You've Started a Home Based Business
You have turned your love of a product into a little sideline. When do you need to declare that money you earn as "business income"? Is it from day one? How much of your home expenses can you write off? Can you write off any? What about meals that you purchase while prospecting? Does the 50% limit apply on the meals you purchase when you attend a conference out of province? What are some ways that you can reduce your tax payable by including your family in the business?
Let a professional help you if any of the situations above apply to you. You will be glad you did.
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