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...

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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”...

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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...

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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...

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The Mortgage: Buying and Financing a Home

Balancing House and Money

For most people, buying or building a home is the largest single purchase and investment they will ever make. There are so many issues to be considered and so many decisions to be made. Once you have decided whether to buy or build, careful consideration must be given to location and neighborhood, size, interior layout and exterior design, affordability and, of course, mortgage and financing. Arranging the mortgage and financing is the first concrete step before proceeding with your purchase or building project.

Buy or Build?

Many families prefer to build a new home for a number of reasons...

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Saving for Retirement

Retirement Plan - Saving for Retirement

Most media articles you read these days that mention saving money suggest that most of us want to save for retirement but few actually manage to make much progress in that regard. There are plenty of reasons quoted for not saving, including the rising cost of living, too many expenses and not enough income, unexpected costs, interruption of income, expanded family and the list goes on. Although there are some very legitimate reasons such as health problems and loss of employment, the real culprit in most cases is, in one word, attitude.

The Problem

We live in a society today which promotes an ...

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RRSP or TFSA – Which Savings Plan is Best for You?


What are RRSPs? What are TFSAs? How are they different? What are the advantages of RRSPs and the advantages TFSAs? Which is best fit for your savings plan? Registered Retirement Savings Plans (RRSP) and Tax Free Savings Accounts (TFSA) are both good ways to save and allow Canadians to invest in a variety of funds including guaranteed investment certificates (GICs), mutual funds, stocks and bonds. However, they are subject to very different tax treatment.


The annual deduction limit for RRSPs, also known as contribution room, is 18 % of your previous year’s income as reported on your tax re...

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How to Reduce Your Debt

Cutting Expenses to Reduce Your Debt

As mentioned in the Article Debt: The Good, the Bad and the Ugly, consumers themselves must be very concerned about their spending and borrowing. They should be aware of the risks involved with rising interest rates, extended periods of financing, using your home as a piggy bank and maxed out balances when obtaining real estate mortgages, car loans and leases, lines of credit (LOC’s) and credit cards.

The Solution to Personal Debt

The solution is obvious and simple, but it is not easy for some...

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