Blog Archives

Purchase or Lease a New Car?

Lease or Buy a New Car?

My previous article, Buying a Car: New or Used?, addressed the most common factors which should be considered when deciding whether to buy new or used. For those who decide to acquire a new vehicle, this article explores the main distinguishing factors between purchasing and leasing. So, Purchase or lease?

Business Use

If you are acquiring a new vehicle for business use, it is often preferable to lease. This is because the entire annual leasing cost can be claimed as an expense for income tax purposes, up to a specified limit.

If you purchase a vehicle, the expense you claim for income tax p...

Read More

Buying a Car: New or Used?

Buying a car: New or used?

An age old question: When buying a car, is it better to buy a new vehicle or look for a good deal on a used one? Of course, there is no one answer. This article addresses the most common factors which should be considered in making this decision.

Individual Needs

You must always consider your personal driving needs before buying a car. If much of your driving is long distance at highway speeds with rapid accumulation of kilometers, then you are probably wise to choose a new vehicle...

Read More

Using Home Equity as a Piggy Bank

Home Equity as a Piggy Bank?

As mentioned in my previous articles on Debt, historically low interest rates have fueled an unprecedented increase in personal borrowing and household debt. One significant component of this debt is real estate mortgages and debt secured by real estate. To make matters worse, many people make poor decisions regarding the use of equity.

Equity in your home is the difference between its market value and the balance on any mortgage. Once home equity is accumulated, there are several ways to use it to your advantage...

Read More

File Tax Online: How to NETFILE

How to NETFILE - File Tax Online

As stated in my previous article, Income Tax – The Agony and the Ecstasy, many Canadians choose to prepare and submit their own tax returns, using the Income Tax and Benefit Guide and other supporting information. Increasingly, they are abandoning the paper return and opting to file electronically. This article will provide you with an overview of how to NETFILE.

A Growing Trend to File Tax Online

According to the Canada Revenue Agency (CRA) website, in 2012 almost 66 % of Canadians filed their returns electronically, either on their own or with the help of a tax preparer...

Read More

Income Tax and Self-Employment


As stated in my related article “3 Main Components of a Basic Tax Return”, if you are reporting income from self-employment in Canada, you must provide an income and expense statement which contains your total income for the year, a breakdown of operating expenses, and your net income or loss.

This article is directed to owners of small businesses and provides information about the income and expense statement and business operating expenses.

This information and additional details can be found in the Canada Revenue Agency (CRA) information booklet entitled “Business and Professional Incom...

Read More

3 Main Components of a Basic Tax Return


The basic tax return can be broken down into three main components: income, deductions from income, and non-refundable tax credits.

1. Income

You must report your income from all sources including: employment, Old Age Security (OAS), Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), other pensions, universal child care benefit, Employment Insurance (EI), dividends, interest, capital gains, self-employment, rental and any other income that is deemed “taxable”...

Read More

Income Tax – The Agony and the Ecstasy

Income Tax - The Agony and the Ecstasy

It’s that time of year again! Millions of Canadians are preparing to file their annual personal income tax returns. For many, it’s a formidable task which they tend to postpone until the last possible day, which happens to be April 30th of each year. There is no denying that the tax return process can involve a number of forms, schedules, information slips, and yes, a certain amount of frustration. However, in many cases, it is not as complicated as some may think.

Main Components

The basic tax return can be broken down into three main components: income, deductions from income, and non-r...

Read More

Buying or Building a House: 5 Important Factors to Consider

Buying and Financing a Home

Financing and the decision to buy or build are both covered in depth in my article “Buying and Financing a Home”. Here are 5 other important factors to consider when buying or building a home:

1. Be Prudent when Choosing a Neighborhood

Buying or building in an established and completed area reduces or eliminates the risk of a future development that may negatively impact the value of your home. If the area is not completed, research to determine what can be expected in future development...

Read More