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
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.
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
Anon, you cannot over declare, nice try thoughDelete