Frequently Asked Questions

Do I qualify for pension splitting?

If you are a senior CRA allows you to split up to 50% of certain pension income with your spouse.  Pension splitting with your spouse can result in significant tax savings. 

Take advantage of our free initial consultation to see if you can split pension income with your spouse.

I am currently self-employed.  How do I know if I should incorporate my business?

There can be benefits to incorporating your business.  Corporations are taxed at a lower rate than individuals, dividends can be paid to shareholders resulting in lower personal taxes than wages etc.  However there are drawbacks as well, such as increased legal and accounting fees.  Every situation is different and it is best to speak to an accountant to determine what is best for you. 

Take advantage of our free initial consultation to see if incorporating your business is right for you.

Should I buy RRSP’s?

RRSP’s can be a useful tool for saving for your retirement.  Most people know that RRSP’s allow you to reduce your taxable income in the year you contribute and that you pay tax in the year you withdraw the funds.  However, if you buy an RRSP and then later withdraw the funds while you are in the same or higher tax bracket then you have not saved taxes, you just deferred the same amount of tax or even paid more tax than you would’ve had you not purchased the RRSP in the first place.

Take advantage of our free initial consultation to see if contributing to an RRSP is right for you.

My spouse is self-employed but I still have to file my personal taxes by April 30th, right?

No.  Even though you receive wages from an employer, since your spouse is self-employed the tax filing deadline for both of you is June 30th.  Be aware though that if either of you owes taxes, CRA will charge interest on the balance owing beginning May 1st.

I live in Port Alberni and had to travel to the Nanaimo hospital to see a specialist, can I claim my travel expenses on my tax return?

Yes you can!  If you have to travel at least 40 kms from your home for medical purposes, you may be able to claim your travel expenses.  Eligible expenses include: mileage, meals, accommodations, parking and more. 

Take advantage of our free initial consultation to see if you are eligible to claim your medical travel.