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. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. My posts are blunt, opinionated and even have a twist of humour/sarcasm. You've been warned. Please note the blog posts are time sensitive and subject to changes in legislation or law.

Friday, February 8, 2013

Tax Tweets of the Day for the Week Ending February 8, 2013

My Twitter tax tips for this week are listed below. My twitter handle is @bluntbeancountr.

Tips for Week of February 4 - February 8, 2013

If you sold stocks or real estate in 2012, ensure you have the original cost documents. If not, pray you are not audited #blunttaxtip

Note: This issue is twofold. Firstly, you should always maintain stock purchase confirmations or the annual summary to substantiate the adjusted cost base of any stock purchases. You also must maintain the original reporting letter and statement of adjustments for any real estate purchase. Secondly, many people do not keep receipts (or they may have paid cash) to substantiate cost base additions to their rental properties or cottages. Without these documents, you may have a difficult time convincing the CRA that the adjusted cost base of the real estate is higher than the original purchase price.

The CRA now requires mandatory E-Filing by accountants. Filing a paper return is no longer a strategy for complex returns. #blunttaxtip

Note: While most accountants have embraced E-Filing by now, many accountants still preferred to file their more complex client returns by paper, to avoid the typical E-File document support requests; this is no longer an option.

Confirm your 2012 installment payments online, or look on the back of the 2013 remittance forms the CRA sent u for a summary.#blunttaxtip

Do not transfer stocks with capital losses to your RRSP last minute for an RRSP contribution; the capital loss will be denied. #blunttaxtip   

Note: Believe it or not, I have seen this issue arise not only where a client did this unknowingly, but also where an investment adviser suggested the transfer. Do not transfer stocks with capital losses to your RRSP. As per this blog on RRSP swaps, I had thought these type transfers had been essentially eliminated. However, I was told as recently as last week by an adviser that his firm still undertakes such transfers.

Interest expense related to investment accounts is often missed. Check the bottom left of T5 summary for interest paid during the yr. #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.

No comments:

Post a Comment