Principal Residence Sale

If you sold any of your Principal Residence in the year 2016, you need to report the same on the tax return for the year 2016. The Capital Gains arising on the sale of your Principal Residence is of course not taxable but however, a disclosure is required on the Income Tax Return for the year 2016.

If you fail to comply with the new disclosure requirements of Canada Revenue Agency rule there could be a penalty up to $8,000

The rules are not that very simple at times and therefore it is best to see a tax professional in this regards

Disclaimer:

Any discussion on this blog relating to tax matters is purely for educational purposes and not taking any specific actions based the general tax rules described therein. Your tax situation could be different and as a result there may be different tax strategies applicable in your case. We do not claim the tax situations described above to be exhaustive or conclusive. In case of any specific tax situations or problems, you are advised to seek professional advice.

Canada Revenue Agency (CRA) Payment Options Become Easy

As we all know, when we owe the taxes on the Individual tax return we have time up to April 30 to pay this amount.

Couple of options are there to pay to CRA

1)      Pay online to CRA by visiting CRA website and clicking on the Online Services Option or

2)      Pay to CRA in the codified payment form which we get upon filing our Income Tax Option or

3)      Send the cheque in favour of Canada Revenue Agency.

Starting this year, CRA has started another convenient option of payment when you go to registered E-filer for filing your Income Tax Return. You can provide the details of your bank account, Institution Number and Branch Number to E-filers so that the same can be included on your Income Tax Return. You can mention any desired date of payment on or before April 30to avoid any late payment charges. However, the date that you mention for taking out the funds from your bank account has to be at least five business days forward to be honoured by CRA.

This is a great facility especially, when you file your income tax return in the last date and April 30 is nearing.

Please remember that this facility is only for Individual Income Tax Return as of now.

Disclaimer: Any discussion on this blog relating to tax matters is purely for educational purposes and not taking any specific actions based the general tax rules described therein. Your tax situation could be different and as a result there may be different tax strategies applicable in your case. We do not claim the tax situations described above to be exhaustive or conclusive. In case of any specific tax situations or problems, you are advised to seek professional advice.