Tax Filing and Home Buying: 3 Insider Tips from An Industry Expert
Fun fact: filing your taxes affects your opportunity to buy a home. And since we’re a month away from the tax filing deadline in Canada, knowing how to properly prepare your papers makes the home buying process simpler and less, er, taxing.
Helping us with this article is Sayem Hasan of 786 Venture CPA, a Calgary-based CPA firm offering professional tax filing services in Canada.
Tax Filing Deadline in Canada
This year, the personal tax filing deadline falls on April 30th. Individuals must submit their returns indicating total income, expenses, and other relative financial details for the previous year. However, taxpayers with business income from a product or service category have until June 15th, though taxes owed must be paid by April 30th. Here are some tips from Sayem to make your tax session less stressful.
Tip #1: File Taxes on Time
Completing and submitting your returns before the due date saves you from a lot of headaches. Not only does it keep your paperwork in good standing, but it also helps you avoid additional late filing charges.
Currently, the late filing charge is 5% plus 1% per month after the deadline, up to 12 months. Late filing charges are separate from the interest incurred from having an outstanding balance, which is at 10% per 2023.
Tip #2: Defer Tax Planning
For those unaware, tax planning refers to setting your details to ensure that you’re paying the lowest fees possible. Some factors to consider include:
- the timing of your income,
- how much income you have, and
- the timing of purchases and expenses.
According to our expert, “If you are a business owner consider showing income and consider deferring applying various tax planning to reduce your taxes.” This places your papers in a better position when using them as documents for homebuying.
Tip #3: Work With a Tax Professional
While many tax filers don’t see the point of hiring a tax professional, there are certain benefits to doing so. Sayem says, “It is always very costly and cumbersome to fix something after it is messed up then fixing it retroactively.”
One way to avoid the hassle is to have an expert in tax filing by your side during the process. They’ll make sure your papers are properly taken care of – cross all t’s and dot all i’s, so to speak. The amount spent on a tax professional will be minimal compared to the hassle of going back to all your papers and paying extra fees.
Make tax filing season work for you with some of these tips from a seasoned professional. 786 Venture CPA caters to the various accounting needs of Canadian businesses, from book reconciliation and auditing before submitting your papers. They use cutting-edge accounting technology and AI while tailoring their service based on each client’s requirements.
If you are interested in learning more, visit their website at https://786vcpa.ca/. Special thanks to Sayem and 786 Venture CPA for providing these tips.
