Tax Tips Canada 2009
December 13th, 2009 Posted in Taxes
Tax Tips For Canadians
Today, I am going to share a few tax tips for 2009 tax year. Please share this post with your Canadian friends. Forward this link via email or social sites. Happy tax season.
First-Time Home Buyer’s Tax Credit (HBTC) – If you are a first time home buyer and have acquired your home after January 27, 2009, you are eligible to receive a non-refundable HBTC tax credit. This $5000 generates a maximum $750 tax credit. Each family receives one tax credit; if you are married or living common-law, you can claim only one tax credit.
Home Buyers Plan (HBP) – First time home buyers can now withdraw up to $25,000 from their RRSP. HBP limit was $20,000 in 2008.
Home Renovation Tax credit (HRTC) – This is a non-refundable tax credit that allows you to recover a portion of your eligible renovation expenses as tax credits from more than $1,000 but less than $10,000. The maximum tax credit can be up to $1,350. HRTC can be claimed on your 2009 tax return and applies to eligible works performed or goods acquired from January 27, 2009 to February 1, 2010 under an agreement made after January 27, 2009.
Tax Free Savings Account (TFSA) – Make a contribution to your TFSA by December 31, 2009 for 2009 tax year. If you make withdrawals in 2009 from your TFSA, it will be added back to contribution room in future years. Also, any unused contribution room will be carried forward to future years.
RRSP/RRIF Losses After Death – If an RRSP/RRIF annuitant dies, the fair market value of a RRIF or RRSP considered income and added on the final tax return unless tax-free rollover provisions are used such as a spouse or minor dependent is getting a tax deferred rollover. Federal Government passed a legislation earlier 2009 to address market declines. This legislation allows (January 2009 and forward) the post-death market value decrease in an RRSP or RRIF, before paying out to the beneficiary, can be carried back and applied against annuitant’s final RRSP/RRIF income that was reported. I suggest that you consult a Tax Specialist on this matter as it can be complicated.
Are You Turning 71 in 2009? – Don’t forget to convert your RRSP to a RRIF or an annuity by December.
Do You Have Kids Turning 18 This Year? – It’s always a good idea to file a 2009 personal tax return even if they have no income. Filing a tax return will start generating contribution room for RRSP, TFSA records on CRA Letter of Assessment, and potentially the GST/HST tax credit.
There will be more tax articles on A Dawn Journal. Don’t forget to bookmark this site and visit often.
Related Articles:
Tax Credit and Tax Deduction
Home Renovation Tax Credit (HRTC)
How To Use Canada Revenue Agency Website
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