INCOME TAX $ 16000 nope it was just not enough taken off.for the goverment end

[mike31154]

Originally Posted by cwatkins

I make similar and ALL my taxes only add up to that.

But it sounds like the big hit is paying all the tax on the withdrawn RRSP's you took out. I'd pay that back instead and your taxes should drop like a rock.

Unless you absolutely need the RRSP money, I'd avoid touching it, unless it is through the Home Buyers Program which allows a tax free withdrawl of RRSP's for first time home buyers.

I think interest on a line of credit would be cheaper than the tax bill...

P.S. Maybe call the CRA and see what your options are? Make sure to talk to someone who actually knows something, not a temp. They have a lot of temps this time of year.

You may have misread, I don't think he withdrew money from an RSP. He/they took out a loan to buy RSPs in order to bring taxes down.

[cwatkins]

Originally Posted by mike31154

You may have misread, I don't think he withdrew money from an RSP. He/they took out a loan to buy RSPs in order to bring taxes down.

Ah, then it really sucks

As global mentioned, maybe look into incorporating and going the dividend route. Works well for me, but I guess each case is different. Just keep in mind you wouldn't be paying into CPP or EI... So that's one downside.

Cheers.

[Slick Fork]

I think and correct me if I'm wrong, but the book keeper that does the book keeping for her real estate firm did the taxes These book keepers are NOT accountants.

I would guess that the money she owes is broken down into GST owing (so many new business owners/self employed people forget that it is NOT income in their pocket) and they probably disallowed a large number of the deductions she made.

The only advice that should make any difference in this situation is she should go to an accounting firm and talk to a CA or CGA and set up a tax plan.

[Skimmerking]

it works out right so in the end we owe 2000 something like that no biggy the 11 grand is in account so that is good. im going to get her to explain it to me later

[Borderjumper]

I sold Real Estate in the US for years.. And am not familiar with Canadian Tax laws, but in the US I could take deductions for actually expenses such as fuel, meals, clothing, etc.. And also depreciate my vehicle.

[Skimmerking]

ya she did all the deductions for gas and other thingsit came down to it was just that my wife didnt put enought away for the income tax. but it works out in the end its only costing 2000 the bummer thing is the ectra mone that she put away relly is what thatshe should have given back so ya its not that bad now

[Slick Fork]

Glad its making sense... I still would really advise you to sit down with a real accountant and come up with a tax strategy. It's amazing how much money people can leave on the table without an appropriate strategy.