The Tax Questions Blog

Posts Tagged ‘canadian’

Question: How much tax would I owe in Ontario, Canada?

I am currently on Ontario Disability and was approved for Canada Pension Plan disability. The funds from Ontario Disability are non-taxable but the CPP income is. However CPP does not withhold the taxes. They will withhold an amount I ask them to hold though.

So CPP will be giving me $400/month or $4800/year (this is the max amount I could potentially get) How much should I ask them to withhold or how much should I put into a savings account for taxes? I want to be prepared at tax time so that I am not surprised

Answer: If you have no other sources of taxable income then you would not owe any tax, as the $4,800 is below the basic personal exemption. If you have other income then it is possible that you would owe additional tax.

McGuinty's New Year's reminder: Enjoy your tax cut

It's the sugar to help the HST medicine go down but Revenue Minister John Wilkinson isn't having a lot of success getting the message out about coming income tax cuts.

The Canadian Real Estate Association has come out with figures alarming to home sellers, but great for home buyers. With sales tumbling by 17 per cent in 2008, the market has been primed, but the prediction of another near-17 per cent tumble in 2009 indicates that the buyer's market isn't changing any time soon. Recent drops uphold the prediction of falling sales and the subsequent falling home prices that make Canadian homes a great buy for the real estate buyer.

In February of 2009, resale home prices dropped an average of 9.6 per cent in Canada alone. This summer, there has been an increasing amount of home purchases, but the market isn't rallying. Even new homes have experienced a slowdown, with new home prices down 3.3 per cent in June, from June 2008. Western Canada is currently experiencing the largest price drops.

All these statistics mean that it's a great time to buy for the Canadian home seeker. The market always turns around and by the time you are ready to move or sell, your home could be worth significantly more than you bought it for, especially in hot markets like Calgary, AB. This is potentially a long-term investment, but while you are waiting to realize it, you will have your own property to live on or rent out.

Real estate is the first best investment. Stocks will fluctuate, mines run out and popular items fall out of vogue, but people always need a place to live. With sensible investment in a good piece of property, you may not get rich, but you will be putting your money into something that can keep you financially stable, help with your taxes and solidify your position in the community. However, many Canadian millionaires made their money from careful real estate investment, so if you start on the road to multiple property ownership, you may realize financial success in ensuing years.

One important aspect of falling home sales is the corresponding fall in interest prices. Interest rates are at significant lows these days; something just as, if not more important than your actual home price. With low interest rates, you can lock in a rate that will take you through your entire mortgage with a payment cheaper than rent for a comparable property.

Now is the time to invest in Canadian real estate. Your investment now will be realized in the long term with equity and rising home values. You must have patience to realize your investment, but you will find that real estate is one of the most stable financial investments you can own and the one most calculated to bring you financial security.

Workers demand living wage from mall

The holiday wish list for the owners and stores at Queens Center Mall most likely included increased sales. It probably didn’t include being called a “publicly subsidized poverty wage center.”