RRSP Deadline for 2010

February 23rd, 2010

Don’t forget that March 1, 2010 is the deadline to buy RRSPs that can be used on your 2009 tax return.

Filed under: Personal Tax by David Boese No Comments »

Age Amount

February 23rd, 2010

Face it, everyone.  There’s no use denying that there ARE advantages to being older.  For example, in a hostage situation, you’re the first one to be released.   And at tax time, you get to claim a larger personal exemption than most of the rest of us.

For 2009 taxes, you are now able to claim an age amount of $6,408, up $1,000 from last year.  You can claim the full Age Amount if you are 65 or over at any time in the year, and if your net income is not greater than $32,312.  If your income is more than that, the Age Amount is gradually phased out.

Learn more about the Age Amount at http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqgmnt-eng.html

Filed under: Personal Tax by David Boese No Comments »

Explaining the flag

February 20th, 2010

A Dutchman was explaining the red, white, and blue Netherlands flag to an American.

“Our flag is symbolic of our taxes. We get red when we talk about them, white when we get our tax bills, and blue after we pay them.”

The American nodded. “It’s the same in the USA only we see stars, too!”

Filed under: Other tips by David Boese No Comments »

I don’t typically like the “doom and gloom” style of reporting.  After all, too much gloom tends to grow on a person, right?

However, here is a gloomy scenario that could play out in Nova Scotia.  First, a quick refresher.  In 2006 the HST rate in Nova Scotia dropped from 15% to 14%, and then dropped again in 2008 down to 13%.  These rate cuts happened after the federal government cut their federal portion of the HST.  Few people complained.

Now, however, both Nova Scotia and the federal Canadian government are severely in the red.  The provincial NDP government has as good as said that they are going to raise the HST rate.  On February 1, 2010 NDP Finance Minister Steele stated that:  “Over the six public sessions we’ve had, I would say people can accept that part of the solution is an increase in taxes, particularly the HST.” Face it, whenever a Finance Minister says something like that, we can expect a tax increase!

Over in the federal camp, the Conservatives are dead set against raising taxes.  But the official opposition, the Liberals, are mumbling about increasing the GST/HST back up to what it used to be.  Fortunately the odds are against it, but there’s obviously potential for both the provincial and the federal governments to increase our HST by a couple of percentage points.

The bottom line is that we may as well expect to be back up to 15% in the next year or two, and let’s hope it doesn’t go past that!  It’s going to be interesting to watch, at the least.

Filed under: Business tax, Consumer Tax by David Boese 2 Comments »