Posted on: 01-05-09 11:01:58
Hi,
I have several tax related questions. Will appreciate the answers:
1. My wife moved from Ottawa to Toronto for work last year. And both of us bought a condo. ( I didn't move as I was already in Toronto). Now, I want to claim her moving expenses. From the forms, I can see that lawyer's fee and land transfer fee etc. can be used for tax deduction. Should I put all the expenses in her name or we should divide the expenses as I didn't move and she moved and both of us own the place.
2. I don't have receipts from movers, meals and gas receipts during travel. But as we file tax online, receipts are only needed when they ask for it. I can probably get receipts from movers if they ask to. Should I claim gas, meals also or not ? Is it a big deal ?
2. As a new condo owner, in 2008, can I get any tax benefits ? Through google, I found out that for 2009 new home owners, there are tax benefits. were there any for 2008 ?
4. Simple question but as I am not too familiar with the process, I will double check it. My wife was a student in 2007. In 2008, she wasn't a student. According to 2007 tax return, there are "Unused federal and tution amounts". Should I fill in Schedule 11 and keep all the fields empty except this one. From studio tax, I see it increases the amount of Refund significantly. Am i doing it right ?
5. If above description is correct, she gets about 5000 dollars in reimbursements. Is it normal or people do have larger refunds ?
Hello ,
My only advice to you is that you should visit a tax person, even if you pay a maximum of $ 100 /- , it is better than losing out on a deduction / expense etc where your refund may be affected by lot of money.
Again in this forum informed people will give the right guidance based on your specific information ,but you may not have provided all the information which if available to us may give a different conclusion.
So my suggestion , speak to a tax expert.
Thanks,
RJ
Quote:
Originally posted by ulludapatha
Hi,
I have several tax related questions. Will appreciate the answers:
1. My wife moved from Ottawa to Toronto for work last year. And both of us bought a condo. ( I didn't move as I was already in Toronto). Now, I want to claim her moving expenses. From the forms, I can see that lawyer's fee and land transfer fee etc. can be used for tax deduction. Should I put all the expenses in her name or we should divide the expenses as I didn't move and she moved and both of us own the place.
2. I don't have receipts from movers, meals and gas receipts during travel. But as we file tax online, receipts are only needed when they ask for it. I can probably get receipts from movers if they ask to. Should I claim gas, meals also or not ? Is it a big deal ?
2. As a new condo owner, in 2008, can I get any tax benefits ? Through google, I found out that for 2009 new home owners, there are tax benefits. were there any for 2008 ?
4. Simple question but as I am not too familiar with the process, I will double check it. My wife was a student in 2007. In 2008, she wasn't a student. According to 2007 tax return, there are "Unused federal and tution amounts". Should I fill in Schedule 11 and keep all the fields empty except this one. From studio tax, I see it increases the amount of Refund significantly. Am i doing it right ?
5. If above description is correct, she gets about 5000 dollars in reimbursements. Is it normal or people do have larger refunds ?
As another poster mentioned, it would be advisable for you to see a tax expert so that you should not miss out on any deduction and also should not claim any thing which you are not entitled to. However, I will try to answer some of the questions:
1. Since only your wife moved from Ottawa to Toronto, her moving expenses along with other family member in the move can be claimed. However, if she did not own any house in Ottawa which was sold because of the move, you (she) can not claim costs for buying a new condo in Toronto.
2. For claiming mover expense, you have to have the receeipt of some sort of proof and you can claim it but the burden on proof is on you when CRA wants to see those receipts. For claiming meals expenses, you can use the simplified method and similarly for car expenses again simplified method can be used and you do not necessarily have to have the receipt for the same.
3. If you are a first time home buyer, you would have gotten the benefit on the Land Transfer Tax not being charged (subject to a limit) on the resale condo as well. However, the benefits of cost of repairs etc. announced in 2009 were not available in 2008.
4. If your wife has unused Tuition and Education amounts from previous years, she can claim them on her 2008 tax return by showing them on S 11 and yes, it will definitely increase her refund. So, you are doing this right.
5. Getting tax refund depends on the tax already paid and eligible expenses and refundable and non refundable tax credits, RRSP deductions etc. and yes people get even much more refund then the amount you are mentioning.
I hope it clarifies a bit. Do read moving expenses again. Follow this http://www.cra-arc.gc.ca/E/pbg/tf/t1-m/t1-m-08e.pdf and once again see a tax expert.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod,
Thanks for the reply...
My wife was renting in Ottawa... So I assume, she doesn't qualify for moving expenses tax deductions...
I have sent you a PM. Please reply...
Quote:
Originally posted by ulludapatha
Pramod,
Thanks for the reply...
My wife was renting in Ottawa... So I assume, she doesn't qualify for moving expenses tax deductions...
I have sent you a PM. Please reply...
No problem.
Was away for 2 days. Have replied to your pm.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
