Posted on: 15-03-04 20:19:17
Hi Sir,
I have decided to do my taxes for my family the first time and I have decided to use the software program Quick Tax to assist me. I just had a couple of questions to ask.
1) On the T-4 slip that I received from my employer, I noticed that in Box 28 there are two "X", on in the CPP box and one in the EI box. On top of this there is another box that says VOID and has an X in it. Does this mean that CPP and EI is exempt?
2) Can interest paid on a mortgage loan be included when filing a tax return and if so, under what category could it be claimed?
Thanks!
Quote:
Orginally posted by sweety
Hi Sir,
I have decided to do my taxes for my family the first time and I have decided to use the software program Quick Tax to assist me. I just had a couple of questions to ask.
1) On the T-4 slip that I received from my employer, I noticed that in Box 28 there are two "X", on in the CPP box and one in the EI box. On top of this there is another box that says VOID and has an X in it. Does this mean that CPP and EI is exempt?
2) Can interest paid on a mortgage loan be included when filing a tax return and if so, under what category could it be claimed?
Thanks!
Hi Sweety,
BOX 28 : A mark ('X') under CPP/QPP or EI indicates that the employee is exempt from CPP OR EI contributions for the entire period of employment. Boxes 16 and 26 (CPP), or Boxes 18 and 24(EI) should be blank in either case.
An emplyee who gets a T4 slip can not claim mortgage interest, even if he uses a portion of his home for work (home office) as per the terms of employment.If you are claiming work space in the home expenses as a business expense, you can also deduct a portion of your mortgage interest and capital cost allowance. You cannot deduct mortgage interest or capital cost allowance if you are claiming work space in the home expenses as an employment expense
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Orginally posted by Pramod Chopra
Hi Sweety,
Interesting salutation!
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Chandresh
Advice is free – lessons I charge for!!
Claiming Capital Cost Allowance for principal residence will not be a good proposition.
In future in case of sale of property you maybe subject to higher capital gains tax
You lose the principal residence benefit
In my opinion do not claim capital cost allowance, however you can claim other expenses of home office. However they are restricted to the net income after adjusting all other expenses
