When you inherit a trust, the tax rate that applies to the income generated by the trust depends on the type of trust and the tax laws in the jurisdiction where the trust is established. Generally, the tax rate for a simple trust, which distributes all its income to the beneficiaries each year, is the … Read more
The taxability of your Provident Fund (PF) withdrawal depends on several factors. If you withdraw your PF before completing five years of continuous service, the entire amount is taxable. However, if you withdraw it after completing five years, only the interest earned on the PF is taxable. To calculate the taxable amount, you need to … Read more
Scotland has devolved income tax powers, meaning the Scottish government has the authority to set income tax rates and bands within certain limits determined by the UK government. This allows Scotland to tailor its income tax system to suit its specific economic needs and priorities. While the Scottish government has control over income tax rates … Read more
Military bonuses are subject to federal income tax. The amount of tax withheld will depend on your filing status, income, and deductions. The bonus will be included in your taxable income, so it will increase your overall tax liability. However, you may be able to reduce the amount of tax you owe by claiming certain … Read more
Harmonized Sales Tax (HST) is a single tax that combines the federal Goods and Services Tax (GST) and a provincial sales tax. In Canada, four provinces have implemented HST: Ontario, New Brunswick, Nova Scotia, and Newfoundland and Labrador. These provinces have agreed to harmonize their sales taxes with the federal government, which means that businesses … Read more
Taxidermize is not a real word; it is a misspelling of the word “taxidermy,” which is the art of preserving and mounting the skin of an animal (or parts thereof) on a form that resembles the animal in life. The word “taxidermy” is derived from the Greek words “taxis,” meaning “arrangement,” and “derma,” meaning “skin.” … Read more
The Harmonized Sales Tax (HST) in Ontario is a combined provincial and federal sales tax that applies to most purchases of goods and services in the province. It is calculated as a single rate of 13%, which includes the 5% federal Goods and Services Tax (GST) and 8% Ontario Provincial Sales Tax (PST). The HST … Read more
Distributions from an estate can have tax implications. If the estate is subject to estate tax, then the distribution may be subject to income tax. The amount of tax owed will depend on the value of the distribution and the recipient’s tax bracket. In some cases, distributions from an estate may be eligible for a … Read more
Whether or not Paycheck Protection Program (PPP) loans are taxable depends on how the borrower uses the funds. If the loan proceeds are used for eligible business expenses, such as payroll, rent, and utilities, the loan is generally not taxable. However, if the borrower uses the loan funds for non-business expenses, such as personal expenses, … Read more
Mortgage down payment isn’t tax deductible. However, there are deductions available for mortgage interest and property taxes, under certain conditions. Mortgage interest deduction lets you deduct the interest paid on mortgage up to a specified limit. Property tax deduction allows you to deduct state and local property taxes paid on your home. Tax Benefits of … Read more