Home Buyer Articles & Advice

Tax Time Tips

Every year we search for the most effective tax breaks to ensure the highest tax return possible—or lower the taxes we owe, whatever the case may be. While filing your taxes is about as much fun as a root canal, learning a few tips and tricks can help make the experience a little less stressful.

Child Deductions
While the custodial parent is generally allowed $3,050 per child for 2003 ($3,000 for 2002), this rule can be over-ridden. Parents can agree to allocate the exemptions—for example: allowing your ex to have the child's exemption won't preclude a custodial parent from claiming head of household filing status.

Business Deductions
Small-business owners can deduct costs incurred to earn income. Be sure to maintain your financial records accurately and save all receipts. Deductible expenses for small businesses include advertising, promotion, rent, salaries, legal fees, auto expenses and accounting fees (next year you can claim the cost of this year's claim). If your taxable sales are less than $30,000, you don't' have to register for GST/HST. However, it's generally advisable because you can claim input tax credits in respect of your expenses.

Home Buyers
If you purchased a home in 2002, you may be entitled to deduct the mortgage points paid by the seller. There is one catch, though—you have to reduce the tax basis of your new home by the amount of seller-paid points that you deduct. Also ask your tax professional about "qualified residence interest." If you sold a house last year, you might have prepaid some of the property taxes that came due after the sale. You can deduct this amount on your return as well.

Charity
Don't overlook charitable donations. If you're a contributor, keep you receipts and claim them on your tax return. Many people don't realize that charitable donation receipts are good for up to five years, so if you missed them last time, it's not too late.

The April 15th deadline is fast approaching. Here's our most valuable tip: Ask Questions. If you have questions about your tax return, visit the T.I.P.S. website at http://www.ccra-adrc.gc.ca/eservices ipsonline/menu-e.html or call1-800-959-8281.

This article was published in the March edition of Sophia's Royal Report: http://www.sophiainguelph.com/

Word Associates was founded by Aimee Beck in 1999. Within several years of writing for various genres, Word Associates quickly built its global clientele, and continues to serve all four corners of the world with its revolutionary copywriting solutions. Contact Word Associates for a free copywriting quote: acremasco@wordassociates.ca http://www.wordassociates.ca/

Related Pages

Home Buying Strategies - Five home buying strategies to make your transition easier - Get pre-approved for a mortgage is key to making a clean offer on the new home you want.

Home Buying Tips - Information and tips about buying a new home and getting pre-approved for a loan before you start seriously looking.

Home Buying Mistakes - Tips on buying your new home - Avoid these common home buying mistakes that will cost you thousands extra.

Nothing Down Real Estate - Flipping houses is not illegal - Make money in real estate by using nothing down strategies or 100% financing with no PMI.

Real Estate Investment Tips - Seven real estate investment tips - Best sources for investment property loans - How to find good real estate investment properties for resale.

Online Lenders - Tips on evaluating online lenders and their offerings.

Terms - Information and explanations about home loan terms, mortgages, and home equity loans.

Mortgage Brokers - Shop these top lenders for comparison quotes.

Down Payment Leverage - Avoid PMI with a two-loan strategy. How to grow your equity faster.

Refinance- Tips on when refinancing is the right decision - How to avoid paying points and other lender fees.

Home Loan Online - Discover the best ways to get the lowest rates - Links for checking current rates.

Loan Directory - Complete home loans directory for thousands of loan products, companies, brokers, and lenders. Search our loan directory by keyword or by category for complete listings of all things related to mortgages, home equity loans, refinance, and more.

In The News

	Web Home-Loans-Help.com