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Tax

Limitations on expenses for vehicles used by passengers

Limitations on expenses for vehicles used by passengers

Under the Income Tax Act, there are restrictions on the allowable deductions for passenger vehicles, whether new or used, except for zero-emission vehicles (ZEVs) purchased before March 2, 2020, which must be new. The prescribed limits for passenger vehicles acquired or leased after 2000 are as follows: ■ for loans taken

Interest on funds borrowed for investment purposes

Interest on funds borrowed for investment purposes

The interest on the loan taken to purchase investments can be deductible if the investments generate income in the form of dividends or interest, or if there is a reasonable expectation that they will generate income. This deduction can be made from the total income. Please note that the interest

The spouse with the lower income should claim all medical expenses on their tax return

The spouse with the lower income should claim all medical expenses on their tax return

The lower-income spouse should report all the family's medical expenses for Canadian Income Tax. The less your net income, the higher the amount of eligible medical expenses you can claim. However, since the tax credit is non-refundable, the spouse claiming the credit should have enough income to use the entire

Revenue from renting out a room in your primary home

Revenue from renting out a room in your primary home

If you earn incidental income from renting out a room in your primary residence, the property will remain exempt from Canadian income tax on any capital gain upon sale, as long as: * no structural changes are made * capital cost allowance (depreciation) is not claimed Disclaimer: “Please note that the information

Guidelines for the Cancellation and Waiver of Interest and Penalties

Guidelines for the Cancellation and Waiver of Interest and Penalties

This document outlines the procedure for requesting the cancellation or waiver of interest and penalties, as well as the necessary information needed for the request to be evaluated. Penalties and interest may be waived or cancelled in whole or in part where they result in circumstances beyond a taxpayer's or

Lottery Winnings Gift Tax

Lottery Winnings Gift Tax

Canada does not impose a tax on gifts, allowing gifts of any kind, including winnings from lotteries, can be given without facing tax consequences. For example, if a family member wins a lottery and chooses to give the winnings as a gift, the recipient will not be taxed on what

Not eligible medical expenses

Not eligible medical expenses

The list below details the medical expenses that cannot be claimed as tax deductions in Canada. List of common medical expenses: Disclaimer: “Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as