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Below are the 12 most recent journal entries recorded in Canadian Tax Preparation Questions' LiveJournal:

Saturday, December 31st, 2011
11:46 am
Twitter re-post
Are you 65-70, working and get CPP? Do you need to file a CPT30 before Dec 31?
11:45 am
Twitter update
If you are self-employed, chances are your year end is today- Dec 31.
Tuesday, February 3rd, 2009
11:02 am
What is advanced earned income credit?

Question: What is advanced earned income credit?

Answer: The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.
The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

for more information, please visit www.TheTaxAttorney.org free tax attorney and free Information on how to resolve IRS Tax Problems
Monday, January 26th, 2009
7:28 pm
Hopefully everyone is not totally discounting their RRSP for the TFSA.
Has everyone started filling out your T1?
Monday, February 25th, 2008
12:18 pm
new baby = tax hell?
I am so lost right now.  I'm trying to do our first tax return with Tristan on it and I have no idea what to do with the Universal Child Tax Credit part.  It is asking for an amount and I have no clue?  Help?
Wednesday, February 6th, 2008
9:36 pm
General question from a US citizen
This week I interviewed for a job in Richmond, British Columbia, Canada.
Having lived in the USA all my life, I know nothing about the Canadian tax system.

If I take this job, what taxes (Canadian, provincial, social security, etc) will I be paying, and what are the rates of taxation?

I expect to apply for a work permit of some kind.
As a non-citizen, am I exempt from certain taxes, and will I be denied some services?

If I move to Canada, are there property taxes? Sales taxes? Value-added taxes?
Thursday, January 10th, 2008
10:50 am
Single filing
Hello All :D

I'm trying to figure out what has more benefits for my family;
Filing taxes separately or allowing my partner to claim me (and my child by extension) as dependents.

I figure it would effect my child tax bonus for sure but I'm not sure what else.
Also, I make union due payments, would I still be able to claim those if I wasn't filing?

Can you file for two people but one be a dependent?

Sooo confused!
Monday, December 10th, 2007
12:11 am
I wish I could afford an accountant
My husband and I started a home business and have been running it for two years now (as a sole proprietorship). We haven't filed taxes for 2006 because we weren't sure how to do them, and as our business is barely getting by, we aren't able to afford an accountant. (At least we've been keeping track of the receipts and entered them into QuickBooks so they're accessible, though.)

I've recently decided to try tackling the taxes, but I'm finding that I'm totally lost. I've read the guides on the CRA website about business income, but I just don't get it. For example, in the guide, at one point it says that you need to fill out Form T2124, Statement of Business Activities, and Form T2032, Statement of Professional Activities. But at another point of the guide, it uses the term "or" instead of "and" when referring to the two forms, which is confusing; am I supposed to fill out both of the forms, or only one? If I only need to fill out one, how do I determine whether our business falls under the category of "business", or the category of "professional"?
Sunday, November 25th, 2007
3:36 pm
Well this community seems a little dead but hopefully there are still some people watching it.

I have this tax assignment to do, and there are a couple of things I'm not sure on.

Rental Properties:

Fred and Wilma own two rental properties in Toronto, which were purchased a couple of years ago. Fred had bought both properties with his own funds, but they are under both Fred and Wilma’s names. On June 30 2006, the Flints sold one of the two rental properties that they own (Rental#1). They sold the property for total proceeds of $500,000. The details of the sale of Rental#1 are as follows:
Land Building(Class 3) Furniture(Class 8)
Original cost $125,000 $175,000 $38,000
U.C.C., December 31, 2005 n/a 135,000 16,000
Proceeds, June 30, 2006 260,000 220,000 20,000

The proceeds of $20,000 for the furniture were received in cash on June 30, 2006. For the land and building, the proceeds received were $200,000 of cash (paid on June 30, 2006) and a $280,000 debt secured by the land and building. The debt is to be amortized over 15 years with a four-year term and with an interest rate of 8%, payable monthly. Principal repayments of $30,000 are to be made on January 1 each year commencing January 1, 2007. At the end of the four-year term, the balance of the debt will be paid in full.

How do you account for the interest? Should it be included in reserves of capital gains on disposition?

Also... this is a question that I think is specific to the program TaxPrep.

Fred and Wilma have two children. Pebbles is 22 years old and Dino is 17. Pebbles attended a university on a full-time basis in another city for eight months, had employment income for tax purposes of $8,000 from a summer job while living at home, and received a $2,000 scholarship. Fred paid for Pebbles’s tuition fees of $4,000 and Pebbles paid her own moving costs from the university which were $150.

She's not a dependent, but is there a way to connect her tax return to his so that he can get the tuition credit?

Thanks in advance for any help!

Current Mood: confused
Saturday, April 15th, 2006
11:31 am
I have an interesting problem...
I have an interesting problem.
last year I was hired as a contractor by one company for another. (I never actually checked the fine print - the company I was dealing with directly has been good in the past). I was promised about $30K for work that ended up taking about 6 months of rediculously long days. I went into debt at the time to the tune of $10K.
At the end of development period, ready to deliver - the contract was cancelled. I ended up having to borrow more (a total of $20K for the year including the first loan) just to survive.
outside of that:
warehouse work 1 month near beginning of year
warehouse work right before contract cancelled...
total income for year around $5000 - and yes as an employee that paid income taxes et al for me.

How the heck to I file? My income for the year turns out to be around -$15K.
I'm dithering about declaring bancruptcy. (the first company I was dealing with just managed to avoid bancruptcy - but the owners lost their home. I'm not the only one burned by this) (oh I also lost the home I was renting and ended up homeless for december. I don't know if that makes any difference - I doubt it)
I try and think about what I'll report - and I'm totally lost. Should I talk to someone? I haven't even got a penny to my name left... so paying someone else is out of the question.

(aside - business has started slowly picking up again - but it's at a "I can just survive if I have a job as well" level at the moment.)
Sunday, April 9th, 2006
3:50 pm
Second posting:
A word to the wise: many times we hear from clients that their sister's nephew's cousin's neighbour's goat told them they could take certain deductions or that they were paying no tax at all. First, many times such tax planning "works" because the amount is so small, they have simply never been "caught". Second, many times, the rumors we hear from our well intentioned friends and relatives do not apply verbatim to our situation. It is virtually impossible to comment on any comparative situation without knowing all the details and reviewing their situation personally.

Please keep in mind - if something sounds too good to be true, it probably is.

3:46 pm
First post
I don't think it needs to be said but I'll say it.
This is for general questions only. It is virtually impossible to give specific answers to specific situations because it is difficult to know the details that may affect someone. Everyone who may have a tax "problem" is always encouraged to go talk to a licensed accountant.

None of the people answering accept any liability for the answers. They are provided based on the answerers knowledge and experience and for general information. If you go with an answer, you do so at your own risk. Every province is different, and someone may be giving you an answer that applies to one province (or state) and not another. You take that risk.

In this litigious society, please do not sue anyone here - the big caveat is we are people who may have some experience in the area in which you are seeking assistance. If you are planning on suing anyone, you are not welcome to participate.

Finally, please play nice. We're not going to debate various preparers status vs. professions. The main goal is to help the regular joe people who really are trying to prepare their own taxes but may have just a quick question. A nations taxation should never be so complicated that it has a whole industry based on specialization of compliance. But it is - so let's try and help those people who are willing and able to do it themselves - and good on you for doing so.

All the other usual caveats yadda yadda apply.
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