The Ins and Outs of Preparing Your 2020 Tax Returns
About This Episode
Tax season can be quite a stressful time for many investors. On top of that, with the changes that 2020 brought for a lot of us from working from home, to real estate purchases, and government programs, things may look a little different than usual.With that in mind, we wanted to dedicate this episode to getting you up to speed on the key areas you should be thinking about as you prepare to file your taxes. To help us dive deep into this topic, we’re joined by our own Hugh Campbell, a longtime Partner at Tulett, Matthews & Associates.
Hugh is a Chartered Accountant and he is not only responsible for legal, accounting and other administrative functions of the firm but he also oversees the tax preparation services offered to the clients of the firm. He graduated from McGill University with a BSc in Neurobiology & Physiology and later completed a diploma in Accounting at McGill before completing his CA.
On this episode, Hugh and I talk about the advantages of contributing to a retirement savings plan (RSP), the general rule to keep in mind for tax deductions, the benefits of working with a tax professional, the hefty penalties that stem from incorrect and incomplete filings, how you can be proactive when it comes to your taxes, what to do if you realize you’ve made a mistake, and so much more!
Thank you for listening!
- How an RSP helps you pay yourself first (1:46)
- The tax savings you can achieve through an RSP (2:28)
- Why you must file your taxes on time (3:50)
- Coordinating your family’s tax returns (5:50)
- Declaring government payments on your tax return (7:13
- Can you claim a deduction for your work from home expenses? (8:55)
- What you need to consider before claiming a home office deduction (10:49)
- The general rule for determining which expenses are tax-deductible (12:35)
- Tax credits available for seniors and retirees (13:40)
- Disability tax credits (14:31)
- The strict reporting rules around real estate transactions (16:14)
- Why it’s important to consult a tax professional when settling an estate (18:00)
- Reporting your foreign income on your Canadian tax return (19:17)
- Being proactive in your tax reporting (20:40
- Incentives for charitable giving (22:30)
- Why taxes are so variable from one person to another (24:57)
- Responding to a Notice of Assessment (26:36)
- What to do if you can’t afford to pay your tax bill (28:17)
- How long should you keep your records? (30:05)
- Key takeaways to keep in mind for tax season (31:26)
- And much more!
Thanks for Listening!
An FHSA is a vehicle people can use to save for purchasing their first home while receiving a tax deduction on contributions. The money grows tax-free, and you can use it to buy a house without needing to refund the account; unlike the RRSP’s Home Buyers’ Plan.
Whether you’re a first-time home buyer or a seasoned real estate investor, understanding the intricacies of mortgages is a game-changer in your financial journey. With many potential pitfalls, confusing jargon, and seemingly endless options, proper guidance throughout the mortgage process is invaluable.
Countering bad advice, especially during tax season, is crucial. So we reached out to expert and tax specialist Réginald Pierre-Louis to bust several tax myths and give you the facts to help ensure that you file accurate returns. His expertise can help ensure that you receive money the government owes you and avoid penalties for underreporting.
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