Navigating Personal Taxes: Do’s and Don’ts for Better Results

Tax season can be a daunting time for many individuals, but with the right knowledge and guidance, you can navigate through it smoothly. At Hendry Warren, we understand the intricacies of personal taxes and are here to offer you some valuable tips to improve your tax results. If you missed our most recent live webinar on Navigating Personal Taxes you can view it on our YouTube channel. We host free monthly webinars so be sure to sign up for the next one held April 8th on Registered Investments!

Let’s delve into some of the do’s and don’ts: 

Payment and Filing Deadlines  

Knowing your deadlines is crucial to avoid penalties. For most taxpayers, the deadline for filing taxes and any balance owing is April 30th. However, self-employed individuals have until June 15th to file, although taxes owed are still due by April 30th.  
 
DO: Keep an eye on HST deadlines if you’re registered and ensure compliance with installment requirements. 

DON’T: Ignore instalment requirements and reminders sent by CRA 

Capital Losses  

Understanding how to utilize capital losses can optimize your tax situation. These losses can be carried back up to three years, applied in the current year, or carried forward indefinitely to offset capital gains.  
 
DO: Analyze your marginal tax rates across different periods to make the most beneficial choice. 

DON’T: Miss the opportunity to recover income tax by carrying losses back to offset capital gains in previous years. 

Principal Residence Reporting 

Ensure you meet the criteria for designating your property as a principal residence, as this can have significant tax implications.  
 
DO: Be mindful of reporting requirements related to the sale or change of use of your principal residence. 

DON’T: Discount the value of income tax advice when selling your principal residence. 

Home Office Costs 

With the elimination of the simplified method for claiming home office expenses, it’s essential to follow the detailed method and meet eligibility criteria. 
 
DO: Keep records of eligible expenses and consult with your employer regarding Form T2200 requirements. 

DON’T: Miss out on deducting expenses you might be eligible to claim on your tax return. 

a home office

Deductions 

Deductions can lower your taxable income and potentially save you money. Taking the time to discuss your options with your accountant and understand the qualifications can have a significant impact on your personal taxes. 
 
DO: Explore various deductions available to you, such as childcare costs, moving expenses, support payments, accounting fees, investment fees, and RRSP contributions. 

DON’T: Miss out on deducting amounts you might be eligible to claim on your tax return. 

Pension Splitting 

Understanding pension splitting requirements can lead to lower income taxes and other benefits. Ensure eligibility criteria are met and explore the advantages of equalizing income with your spouse. 

DO: Optimize your family net tax result by splitting eligible pension income as appropriate. 

DON’T: Assume certain types of income will not qualify for pension splitting. 

Disability Tax Credit 

Individuals with severe and prolonged mental or physical impairments may be eligible for the disability tax credit. Familiarize yourself with the application process and supplementary credits available to maximize your tax savings. 

DO: Speak to your doctor about completing the application form for the disability tax credit for yourself or dependent family members 

DON’T: Assume an ailment or impairment would not qualify for the disability.

Record Keeping Requirements 

Maintaining accurate records is essential for tax compliance. Keep records for at least six years and be aware of any exceptions to this rule. 

DO: Set yourself up for success ASAP by using a standardized record keeping system (QuickBooks Online, Excel, etc) with appropriate back ups. 

DON’T: Discard your records prior to the expiration of the required timeframe. 

Still with us? Navigating personal taxes can be complex, but with these tips and the assistance of the Hendry Warren team, you can ensure a smoother and more successful tax season. Don’t hesitate to reach out to us for personalized guidance tailored to your specific tax situation. Remember, proper tax planning and compliance can lead to significant savings in the long run!

Navigating Personal Taxes: Do’s and Don’ts for Better Results 03.23.2024

Tax season can be a daunting time for many individuals, but with the right knowledge and guidance, you can navigate through it smoothly. At HendryRead More

Feature image - Tight crop of two people embracing hands, one persomn is seated in a wheelchair.

The Disability Tax Credit (DTC) Explained & How to Apply 03.14.2024

What is the disability tax credit? The disability tax credit (DTC) is a non-refundable tax credit that helps people with impairments, or their supporting familyRead More

Introducing Hendry Warren’s Online Payment Portal 01.05.2024

Hendry Warren LLP is pleased to introduce a new online payment portal that allows you to settle invoices quickly and securely. We are planning toRead More

"Charities & Giving: New Trust Reporting Requirement For Tax Years Ending On Or After December 31, 2023"

Charities & Giving: New Trust Reporting Requirement For Tax Years Ending On Or After December 31, 2023 12.14.2023

On December 15, 2022, Bill C-32, the Fall Economic Statement Implementation Act, 2022, received Royal Assent. This bill amended the Income Tax Act to expand the filingRead More

Underused Housing Tax Situations Applicable to Canadians for 2022

Underused Housing Tax Situations Applicable to Canadians for 2022 12.05.2023

The Underused Housing Tax (UHT) while presented as a tax that is applicable to individuals who are not Canadian citizens or permanent residents, can alsoRead More

Not-For-Profits and Charities: What do the "Express Trust" Rules Mean For Your Organization?

Not-For-Profits and Charities: What do the “express trust” rules mean for your organization? 10.31.2023

Over the past few years, the department of Finance has updated rules around trust reporting and increased the disclosure requirements for trusts as well asRead More

"Canada Dental Care Plan & 2023 T4/T4A Reporting For Employers" A dentist working at a dental clinic.

Canada Dental Care Plan and 2023 T4/T4A Reporting for Employers 10.17.2023

The Government of Canada has committed to improving access to dental care services for Canadians. As such, they have undertaken an agreement with Sun LifeRead More

"Enhanced GST Rebate On New Purpose Built Rental Properties". A constuction site in the background.

Enhanced GST Rebate on New Purpose Built Rental Properties 09.25.2023

Memo | Taxation News – September 2023 On September 14, 2023 the Department of Finance announced an enhanced GST New Residential Rental Property rebate forRead More

CEBA Loan Extension 09.20.2023

Attention all Canada Emergency Business Account (CEBA) loan holders: As of September 14th, 2023 the repayment deadline for partial loan forgiveness has been extended toRead More

A poster indicating the date and features of a past event.

Local Firm Meet & Greet – September 12th 08.29.2023

Calling all University of Ottawa & Carleton University Students! Come meet us and a fantastic group of local Ottawa firms September 12th at Sala SanRead More

Testimonial from Rob Waterman - President at Waterman Sales Ltd.

We have been in Business since 1992 and had an accountant who was a family friend. When he retired, we needed to find a new accountant. Jacob at Hendry Warren was recommended to us through our Lawyer. We met with him and were impressed immediately; over the years we have gotten to know more of the staff and are equally impressed. They have done our company taxes, company valuations, share purchases, tax planning, covid relief, personal taxes, etc. All of which have gone very smoothly. Hendry Warren is aware of new legislation and has helped us grow as a company.

Rob Waterman (President at Waterman Sales Ltd.)
Testimonial from Lynn LaHam - CPA, CGA, Crossroads Children’s Centre

Hendry Warren is a very professional organization who are very sensitive to client needs and timelines. Marie Fraser and all of the staff that I have met and worked with exhibit the same degree of courtesy and professionalism. It is always a pleasure working with them.

Lynn LaHam ( CPA, CGA, Crossroads Children’s Centre)
Testimonial from Chris Jerome, Treasurer - Habitat for Humanity – National Capital Region

Hendry Warren LLP has been easy to work with, dependable, personable and professional and are always available when we need them. The annual audit process is efficient and timely and their staff is always knowledgeable and well prepared.

Chris Jerome, Treasurer (Habitat for Humanity – National Capital Region)
Testimonial from Don Silverman - CFO Sciemetric

From the partners to the new graduates, the quality of service and advice were second to none…we rely heavily on the advice we are given from both an audit and tax perspective…I know that our firm can count on Hendry Warren LLP to be accurate, timely and professional at all times.

Don Silverman (CFO Sciemetric)
Testimonial from Gordon Miller - President, UNIGLOBE Premiere Travel

In every instance where advice or assistance has been needed it has been provided with clarity and timeliness. And with a very satisfactory outcome. Our accounting staff have always appreciated the efficiency of Hendry-Warren team assigned to our audits and review engagements. We appreciate that Hendry-Warren LLP is able to support our needs as a paperless group of companies.

Gordon Miller (President, UNIGLOBE Premiere Travel)
Testimonial from Les Bell, - CPA, CA, President, Lincoln Heights Ford Sales Ltd.

Ian Hendry is a truly responsive and responsible partner in our business and has been for over 20 years. I would (and have) recommend his services to everyone.

Les Bell, (CPA, CA, President, Lincoln Heights Ford Sales Ltd.)
Testimonial from Colin Goodfellow -

I have used Marie Fraser and her team at Hendry Warren for business, personal and special projects. Deep enough bench strength to cover anything, and small enough to pay attention.

Colin Goodfellow ()
Testimonial from Rupert Bonham-Carter -

Jacob has been invaluable over the past 18 months in assisting with the incorporation and start-up of my new business venture. I trust Jacob's advice on complicated income tax and HST matters to allow me to focus on what is most important - my business!

Rupert Bonham-Carter ()
previous arrowprevious arrow
next arrownext arrow
PlayPause

Interested in Working with HWLLP?

How can we help you achieve your business and financial goals?

Share a few details and we'll schedule a call!

Request a Call