My name is Mark Goodfield. Welcome to The Blunt Bean Counter ™, a blog that shares my thoughts on income taxes, finance and the psychology of money. I am a Chartered Professional Accountant and a partner with a National Accounting Firm in Toronto. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. The views and opinions expressed in this blog are written solely in my personal capacity and cannot be attributed to the accounting firm with which I am affiliated. My posts are blunt, opinionated and even have a twist of humor/sarcasm. You've been warned.

Friday, March 1, 2013

Tax Tweets of the Day for the Week Ending March 1, 2013


My Twitter tax tips for this week are listed below. My twitter handle is @bluntbeancountr. Next week will be my last for tax tips.

As in prior years, I will again be posting Confessions of a Tax Accountant, starting in late March or the first week of  April. These posts highlight contentious and/or interesting personal income tax issues that arise in my practice during tax season that I think will be of interest to my readers.

Tips for Week of February 25 - March 1, 2013


File returns in the year your child turns 18.They maybe eligible for some claims at 18 & others at 19 are based on their age 18 return #blunttaxtip

If you sold capital property in 2012 that was held prior to 1994, review whether you elected to bump the value in 1994. #blunttaxtip

Note: In 1994 the $100,000 capital gains exemption was eliminated. However, you were entitled to make a final election to use your capital gains exemption on stocks, real estate etc. Many people forget they made such an election and that their cost base on certain property is higher, which reduces the capital gain to be reported. This election was used extensively by people on their cottages. So if your parents sold their cottage in 2012 remind them to check if they made the election in 1994.

There is no attribution on #Capital Gains if you buy stocks or capital property in your child’s name. #blunttaxtip

Do you pay investment counsel fees to an #investment advisor? If so, they are deductible. #blunttaxtip

If you receive a lump sum in 2013, considering making your 2013 #RRSP contribution early. #blunttaxtip

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

2 comments:

  1. Quick tax question, the answer to which may be useful to the wider community. Is it permitted to over-declare your income on a tax return or is that the same as underdeclaring IE same legal consequences?I was a student last year and had no income. However, if I declare self-employed income or line 104 income that is under the personal exemption limit, I could increase my RRSP limit for use in later years. Is this a legal strategy?

    ReplyDelete
    Replies
    1. Anon, you cannot over declare, nice try though

      Delete