Frequently Asked Questions About Taxes
Taxes often send shivers down most people’s spines, but that is mostly because they have a ton of questions but find answers difficult to come by. To help ease the stress connected with taxes and make you aware of how things work, Crosby Business and Tax Services Ltd. have answered some of the most frequently asked questions about taxes.
1. Why am I getting calls that the CRA is going to arrest me?
The CRA (Canada Revenue Agency) is not trying to arrest you. If you receive a call from someone or an automated message saying you are in trouble, don’t panic! Instruct them to contact your accountant if they are with the CRA, they should have this information. The next step is to hang up and call the CRA’s toll-free line and ask them if someone has been trying to call you. They are very helpful and will be able to verify if someone has reached out to you or if it is part of a fraud to extort your money.
2. My spouse and I have been separated, can I claim any of the childcare expenses I’ve paid?
You may be able to claim these expenses. Speak to your accountant, who will ask specific questions regarding your situation and walk you through the process.
3. My child was in my custody last year, but the CRA has denied me the child tax benefit (CTB). What should I do?
The CRA has a very strong position on this - if both parents try to claim the amount they will not allow either to have it. It is important to keep in mind that when you work with your legal counsel, who receives the CTB needs to be clearly stated. Often couples with joint custody will alternate years or the spouse with the lower income will receive it in consideration towards child support. Again, this is something you need to speak with your legal counsel about.
4. A friend told me that all that is needed for my automotive expenses is an estimate of what percentage is for business. Is this true?
This could not be further from the truth. Yes, it is difficult for small business operators to track their mileage, but it is required. Ways that can assist is keep a journal of your travels, put your odometer reading on the back of your fuel receipts, there are even mobile apps that will track this for you.
5. I plan to lease a new car, can I write off my lease payments?
It is always wise to consult your accountant before entering into lease or purchase agreements. They can guide you through the possible tax implications, and to help you make the best decision.
If you have any more questions about taxes, get in touch with the experts at Crosby Business and Tax Services Ltd. As business and tax consultants in Calgary, AB, we specialize in wealth management, tax consulting, tax preparation and planning services across Airdrie, North East and North West Calgary. To learn more about how we can help you, please click here or contact us by clicking here.