Tax Tip Thursday

These facts could save you a lot of money

I thought I would see how close you are paying attention over the years.

So we are going to have a little quiz and dispel (or confirm) some myths about taxes.

There are lots of old wives tales and “ideas” around how things go with taxes.  Can’t tell you how many times people have said to me…..My friend told me……  or ….. I heard that……., but most of the time, they have heard a myth or old outdated tax laws or worse yet – American tax law from a tv show!

These facts could save you a lot of money

Question 1.

Principal Residence

Question:
When selling your principal residence in Canada, when do you have to report the sale?

A. Only if there is a gain
B. Never
C. Always, even if fully exempt
D. Only if CRA requests it

Question 2

True or False:

If you incorporate, you pay less tax.

Question 3

Capital Gains

Question:
What percentage of a capital gain is currently taxable in Canada?

A. 25%
B. 50%
C. 75%
D. 100%

Question 4 

What is the deadline for most individuals in Canada to file their personal income tax retur

A. March 31
B. April 30
C. June 15
D. December 31

Question 5 

True or False:
I needn’t bother to claim any tuition-related tax credits, because I didn’t make enough money to owe any tax.

Question 6 

True or False:
“Side hustle income doesn’t count if it’s cash.”

Question 7

True or False:

If the CRA doesn’t catch it, it’s basically tax-free.

Question 8 

Ture or False

You can often make a deal with the CRA to pay less tax than you owe.

Question 9

If you sell a business or rental property and you buy another right away, you will not have to pay capital gains.

Answers:

  1. C
  2. False
  3. B
  4. B
  5. False
  6. False
  7. False
  8. False
  9. False

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Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.