Claim the Family Tax Cut one last time + MORE Mar 30th

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Unlike Americans, Canadians can’t deduct mortgage interest on their primary residences. However, you can deduct interest paid on an income property—and it’s not just on the mortgage either, says CPA Allan Madan. Rental owners can make deductions against a line of credit used to fund renovations, and even against money borrowed for a down payment. With such low rates, Madan says borrowing to buy or fix up a rental is smart. “You’re increasing your rent and the value of your property, and you can deduct those borrowing costs.” Just remember: You have to be collecting rent for the deduction to count.
The bottom line: Reduce your taxable income dollar for dollar on what you’ve spent. So if you paid $30,000 in interest on an income property-related loan, you can reduce your income by that exact amount.
More tax tips here.
The post A tax deduction to make more off that rental property appeared first on MoneySense.

There’s a new cash back contender in Canada’s credit card market, and it’s bringing a new level of choice to consumers. Tangerine’s Money-Back Credit Card has officially launched after a successful trial run, and it has created quite a buzz for its unique and flexible rewards structure.

The no-fee card, which was tested throughout 2015 and early 2016 by 32,000 existing Tangerine clients, gives cardholders the ability to choose where they earn the most rewards. Unlike similar cash back options which offer top earnings on gas and groceries only, Tangerine cardholders select their two favourite spending categories to max their Money-Back Rewards, including:

Restaurants
Grocery
Gas
Entertainment
Home Improvement
Furniture
Hotel-Motel
Recurring Bills
Drug Store
Public Transport and Parking

Purchases made within the selected categories will earn 4% on the dollar for the first three months (2% after that), with 1% earned on all other spending. Money-Back Rewards are paid out monthly, and while cardholders can choose to directly apply them to their credit card balance, the card is designed to reward savers; those who deposit their Money-Back Rewards into their Tangerine Savings Account get a third spending category to maximize their earnings…

(Chris Ryan / Getty Images)
In 2014, the Conservatives introduced this credit, which allows families with children under the age of 18 to shift $50,000 of income from a higher-earning spouse to a lower-earning spouse for total tax savings of up to $2,000 per couple. While the benefit was repealed in December when the Liberals took over from the Conservatives, you can still claim it for the 2015 tax year.
The bottom line: The couples who will benefit most from this soon-to-be-gone tax credit are those with a large income disparity and earn roughly $60,000 to $70,000 in combined income. At that point couples will hit the $2,000 cap, so those with higher incomes will not get a larger benefit.
More tax tips here.
The post Claim the Family Tax Cut one last time appeared first on MoneySense.

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The Liberals’ new income tax bracket has made charitable giving extra confusing. For the 2015 tax year, do-gooders still get a 15% credit on the first $200 of total donations, and everything above that gets a 29% credit. But starting in 2016, you’ll receive a 33% tax credit on a part of your donations if your income exceeds $200,000. Take someone earning $203,000 who donates $10,000: She’ll get a 15% credit on the first $200, 29% on the next $6,800 and 33% on the final $3,000 (the amount above the $200,000 income mark).
The bottom line: You may be able to get a bigger charitable tax credit in 2016, depending on your income level.
More tax tips here.
The post Get ready for a bigger charitable tax credit appeared first on MoneySense.

With responsible use, adding another card to your arsenal has advantages