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Financing, Mortgages and Insurance What options are best for you and your situation?


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Old 2011-03-08, 04:34 PM
Tara Wilkins Tara Wilkins is offline
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Default Tax Tips for 2010

It is that time again when we are trying to organize our piles of receipts for 2010 to complete our taxes. In the spirit of tax time, I thought you might be interested in information regarding tax credits for home purchase and renovations.

If you don't understand how your taxes work - it is time! You may be losing out on Tax refunds!

The following link will help both you with some timely tips for this coming tax season!

http://www.cra-arc.gc.ca/tx/ndvdls/s.../menu-eng.html


All the best,

Tara Wilkins
TD Mortgage Specialist
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Old 2011-03-08, 08:15 PM
Mark & Lynda Mark & Lynda is offline
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My experience has always been that for the average person that is not self employed, and does not work out of their home, and who make a decent family income, don't qualify for these tax credits. It's not for lack of trying...I try every year!
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Old 2011-03-08, 10:35 PM
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BrianT BrianT is offline
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What can I claim renovation wise? I didn't see anything in the link above.

I know I'm getting the $750.00.
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Old 2011-03-10, 09:21 PM
Mark & Lynda Mark & Lynda is offline
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What can I claim renovation wise? I didn't see anything in the link above.

I know I'm getting the $750.00.
You cannot claim anything for a renovation you did on your primary residence. If it was for the purpose of producing income you can probably claim it. ie. building an office if you're self employed and work out of your home or building a rental unit.
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Old 2011-03-10, 10:40 PM
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Originally Posted by Mark & Lynda View Post
You cannot claim anything for a renovation you did on your primary residence. If it was for the purpose of producing income you can probably claim it. ie. building an office if you're self employed and work out of your home or building a rental unit.
I thought so as well but the OP's post kind of indicated otherwise.
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Old 2011-03-21, 08:38 PM
Tara Wilkins Tara Wilkins is offline
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Hi Mark and Lynda,

I have actually found a lot of my friends are moving to more of "sales" jobs at their company, which allows them to work from home during the week and not have to go into their offices.

Also, with the economy the past couple of years, a large quantity of my friends who work for companies like Pepsi, Wrigley, etc, have all started to work from home much more then having to drive into Mississauga. I am not sure if this is how the work force is heading, but it seems that more and more companies have become much more flexible with their employees and working from home!

I just want to help out anyone who is able too, as the tax credits can be very beneficially. Many of my friends have started up home based businesses part time, just for the potential earnings they can receive every year in writing off their house and bills in their taxes. Their home based business might not be extremely successful, but they still can write it off!

I hope everyone enjoys a successful 2010 tax season!
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Old 2011-03-21, 08:39 PM
Tara Wilkins Tara Wilkins is offline
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And just to clarify, they are able to work from home, and claim it as an office. The companies are now writing it in their employment Agreement, and provided the official tax receipts T2200 etc for them to claim their "home based office".
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Old 2011-03-21, 09:36 PM
Mark & Lynda Mark & Lynda is offline
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Originally Posted by Tara Wilkins View Post
Hi Mark and Lynda,

I have actually found a lot of my friends are moving to more of "sales" jobs at their company, which allows them to work from home during the week and not have to go into their offices.

Also, with the economy the past couple of years, a large quantity of my friends who work for companies like Pepsi, Wrigley, etc, have all started to work from home much more then having to drive into Mississauga. I am not sure if this is how the work force is heading, but it seems that more and more companies have become much more flexible with their employees and working from home!

I just want to help out anyone who is able too, as the tax credits can be very beneficially. Many of my friends have started up home based businesses part time, just for the potential earnings they can receive every year in writing off their house and bills in their taxes. Their home based business might not be extremely successful, but they still can write it off!

I hope everyone enjoys a successful 2010 tax season!
Hi Tara,

These are definitely good tax tips to bring to peoples attention. Every little bit helps.

My company allows employees in certain job roles to work from home as well, however, it's not a condition of employment, it's a "nice to have" benefit. For that reason they will not sign off on a T2200. I work from home on occasion just because I can. Depending on the job role it is possible that if you do not have an office workspace, and are 100% mobile, then they will provide the T2200. I imagine a lot of companies operate in a similar manner in that if you're not a 100% work from home employee they will not provide the T2200.

On the topic of home based business and writing off mortgage and bills, I have heard that the CRA could decide, in some cases, that your home is subject to capital gains in the event you sold if you've been writing off mortgage expenses. Have you heard anything like this?
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Old 2011-03-22, 12:31 PM
oakvillehomeowner oakvillehomeowner is offline
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Originally Posted by Mark & Lynda View Post
On the topic of home based business and writing off mortgage and bills, I have heard that the CRA could decide, in some cases, that your home is subject to capital gains in the event you sold if you've been writing off mortgage expenses. Have you heard anything like this?
If you take CCA (capital cost allowance - the income tax version of depreciation) on your house as a deductible expense, then you will be subject to taxable capital gains when you sell your house, based on the depreciated cost. this can become quite substantial cost in exchange for a modest tax break. most people who claim workspace in the home deductions only claim operating costs - property taxes, utilities, etc.

remember that the workspace in the home must be your primary workspace. according to the CRA, your home office must be "used exclusively to earn income from the office or employment, and on a regular and continuous basis for meeting clients or other persons in the ordinary course of performing the office or employment duties". even if your employer signs a T2200 for you, the CRA can still audit you and disallow your deduction with interest and penalties if they feel your claim was fraudulent. many people fail the "regularly meeting clients" test.

remember also that in order to claim expenses from your home based business as deductible, there must be a reasonable expectation of profit. you need to be really careful any time you try to turn a hobby into a business. i've seen plenty of home stagers, scuba instructors, and other "consultants" caught with that one.

if you're seriously considering this, do yourself a favour and pay for some professional tax advice. it's deductible for a legitimate business, and that way you can get someone else to cover the penalties and interest if you're reassessed differently.
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Old 2011-03-22, 10:29 PM
Mark & Lynda Mark & Lynda is offline
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I don't have a current need for writing off home based business expenses..was more of a curiosity question.

I had a rental property from 2009-2010 but never claimed any workspace in the home expenses for exactly the reasons you stated above.
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