Investment & Financial Articles
Title: Tax Time Tips
Author: Aimee Cremasco
Article:
Every year we search for the most effective tax breaks to ensure
the highest tax return possible—or lower the taxes we owe,
whatever the case may be. While filing your taxes is about as
much fun as a root canal, learning a few tips and tricks can
help make the experience a little less stressful.
Child Deductions While the custodial parent is generally allowed
$3,050 per child for 2003 ($3,000 for 2002), this rule can be
over-ridden. Parents can agree to allocate the
exemptions—for example: allowing your ex to have the
child's exemption won't preclude a custodial parent from
claiming head of household filing status.
Business Deductions Small-business owners can deduct costs
incurred to earn income. Be sure to maintain your financial
records accurately and save all receipts. Deductible expenses
for small businesses include advertising, promotion, rent,
salaries, legal fees, auto expenses and accounting fees (next
year you can claim the cost of this year's claim). If your
taxable sales are less than $30,000, you don't' have to register
for GST/HST. However, it's generally advisable because you can
claim input tax credits in respect of your expenses.
Home Buyers If you purchased a home in 2002, you may be entitled
to deduct the mortgage points paid by the seller. There is one
catch, though—you have to reduce the tax basis of your new
home by the amount of seller-paid points that you deduct. Also
ask your tax professional about "qualified residence interest."
If you sold a house last year, you might have prepaid some of
the property taxes that came due after the sale. You can deduct
this amount on your return as well.
Charity Don't overlook charitable donations. If you're a
contributor, keep you receipts and claim them on your tax
return. Many people don't realize that charitable donation
receipts are good for up to five years, so if you missed them
last time, it's not too late.
The April 15th deadline is fast approaching. Here's our most
valuable tip: Ask Questions. If you have questions about your
tax return, visit the T.I.P.S. website at
http://www.ccra-adrc.gc.ca/eservices ipsonline/menu-e.html or
call1-800-959-8281.
This article was published in the March edition of Sophia's
Royal Report: http://www.sophiainguelph.com/
About the author:
Word Associates was founded by Aimee Beck in 1999. Within
several years of writing for various genres, Word Associates
quickly built its global clientele, and continues to serve all
four corners of the world with its revolutionary copywriting
solutions. Contact Word Associates for a free copywriting quote:
acremasco@wordassociates.ca http://www.wordassociates.ca
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