5 Expensive Mistakes You Can Make on Your Tax Return in Canada
                     5 Expensive Mistakes You Can Make on Your Tax Return 
in Canada
https://www.maroofhs.com
Did you claim the wrong deduction on your taxes? Or, did you forget 
to state a job income that you had a T4 for?
Mistakes can cost you a lot, especially when making mistakes in filing 
tax returns.
Here are some common mistakes you need to look out for a while 
filing your personal tax return.
1. Failing to report Principal Residence Exemption
The Principal Residence Exemption provides an exemption from tax 
on any profit gained from the sale of property that is designated as 
your principal residence.
The sale must be reported on your tax return along with the 
designation on the second page of Schedule 3. You should also fill 
sections related to the principal residence in Form T2091.
2. Not Reporting Foreign Properties and Income
If you owned any foreign property with a total cost exceeding 
$100,000 at any time of the year, you are required to submit Form 
T1135 along with your tax return by the due date.
3. Filing Taxes Past the Due Date
Delay in paying tax is taken very seriously by Canada Revenue 
Agency (CRA) and can be charged with a penalty of 5% of the total 
owing with an additional 1% for every month delayed.
If you have been charged with a late penalty for the past 3 years, 
you will receive a penalty of 10% of the total owing plus an 
additional 2% for every month delayed.
4. Not Keeping Your Receipts
Most Canadians file their individual income tax return online and does 
not require sending receipts for the items you make claims on. 
However, the CRA could ask you to produce the receipts, and failing 
to do so may mean that the deduction is disallowed. In turn, you 
may end up paying more taxes than you thought – and this includes 
penalties of up to 125% of the amount stated on the receipt.
5. Doing it Yourself
Filing a tax return can be really complex as there are too many rules 
and messing them up could cost you a lot of money. Approach a 
professional accountant to gain insights an dadvice on how to get 
maximum returns. 
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