Mortgage Did you know that mortgage interest could be deductible? Anytime you borrow to invest, or earn income, the interest on the loan is deductible against any other income. Please be very careful to keep the deductible portion of a mortgage separate. Increasing your mortgage will cause the Canada Customs and Revenue Agency to consider all payments. being applied to the business portion of the balance first. Automobile Expenses If you claim automobile expenses on your tax return, the Canada Customs and Revenue Agency may ask you to verify them. Please keep your receipts for at least 4 years. Why? Because a tax return is statute barred 3 years after it has been assessed. Credit card statements may be acceptable, but actual receipts are better. CCPC Shares Did you know that the $750,000 capital gain exemption is still available on the sale of qualifying small corporation shares? Tests to determine which shares qualify are not difficult , and we can help you determine whether yours qualify now or whether some changes may be necessary to ensure they qualify in future. Books And Records We are often asked how long to keep records. The Canada Customs and Revenue Agency may reassess a person or corporation up to 3 years after the last notice of assessment or reassessment. Where they can prove fraud or intentional misrepresentation, there is no limit. They require you to ask permission to destroy books and records at the end of 6 years if you wish to do so. This can bring on an audit. We therefore suggest that books and records be retained for as long as you have the storage capability. Sorry. RRSP Still one of the better tax shelters available with minimum risk attached to it. Did you realize the contribution could be made by one spouse and the deduction taken by the other? Another great benefit is that an automatic tax-free rollover between spouses is available on the death of one spouse.