TAX TIPS

With just a few weeks remaining in the tax season and many investors still reeling from the stockmarket crash of 2008/2009 many people are asking if they can claim their losses on their investments. The simple answer is; unless you cash out your investments you are experiencing only a paper loss. Real gains or losses are only recognized when stocks (capital assets) are sold.

However, on the other hand, if you are in a position to leave your investments in for the long haul history suggests you will recover your paper losses. But if you have cashed them out any realized losses can be claimed against gains of prior years to recover taxes paid on those gains. Or, if you have no prior gains the losses can be carried foreward to claim against future gains. All gains or losses must be reported in the year in which they are realized when you sell the capital asset.

Most middle income workers have their investments inside of a RRSP portfolio in the form of mutual funds or segregated funds. Any losses inside RRSPs cannot be claimed against gains outside RRSPs because you already claimed a deduction on the RRSP investment when you made the contribution to you portfolio.

Haven't filed your returns for several years! Don't compound your problem by being late this year or by not filing for another year. Late filing penalties and interest on amounts owed on back taxes kick in on April 30th of the year the taxes are due, and the interest is compounded daily on the past due taxes, the penalties and the interest itself until the full amount is paid. Not filing is only delaying the inevitable, it will catch up to you some day. You can run but you can't hide from the Canada Revenue Agency.

Three other good reasons to file now:

1. You may be missing out on GST Rebates you are entitled to.
2. Or you may have had your Child Tax Benefits stopped.
3. Back tax refunds, Child Tax Benefits and GST Rebates that you are entitled to are recoverable when you do file.

Your social benefits may be stopped after June 30th if you do not file for the current year.

Beware there is also a statute of limitation which may prevent you from recovering some of those benefits if too much time as elapsed.

Perhaps you are approaching the ripe old age of 60 and thinking about drawing the Canada Pension Plan Benefits. You must file your tax returns each year in order to qualify for the benfit. Likewise for the Old Age Assistance and the suppliment.

Call BEN at 902-434-6366 or email benpatey@accesswave.caa to get help. It doesn'y matter where you live. We have had clients in Malaysia, South Korea, Japan and Eastern Russia as well as the US and all over Canada.

Contact us today at 902-434-6366 for help with your tax filing. You may also email benpatey@accesswave.ca. We can do Canadian Tax Returns for any Canadian anywhere, except we do not do returns for people living in Quebec unless they resided in another province or territory on December 31 of the tax year.

We also do United States Returns for filers who have worked or lived in the US.

Did you work outside the country in either the oil exploration and development industry or on construction and redevelopment projects? Be sure you get the full benfit of Overseas Employment Tax Credits and or Foreign Tax Credits. Call BEN at 902-434-6366.

Self-employed? Commissioned Sales Persons? Long Haul Truckers? Professionals? Home Based Business Eexpenses and Certain Employment Expenses can save you taxes as well.

Do you understand how meals and entertainment expenses, convention expenses, motor vehicle expenses, medical, donations and child care expenses should reported. Who clims what? How about reporting the Universal Child Care benefit and the new worker tax benefit. If you don't then you need to call BEN at 902-434-6366 or EMAIL benpatey@accesswave.ca