Submitted by admin on Tue, 04/16/2013 - 16:06
A 64 year old client of mine came in during May of one year and explained that she was retiring in January of the following year. She had computed the numbers and financial she had to work until age 65 until she could start to collect her Old age security. She was exhausted and physically drained and not sure she could make it until then. Diamond Tree Accounting put her on our tax recovery program and after applying $54,000 of her unused capital losses to years where she had capital gains she received an additional $16,500 in tax refunds and was able to use that money to retire in September instead of having to wait until January.
A single dad came to see us at Diamond Tree Accounting. His previous tax professional prepared the past 5 years of returns and explained to him he would owe $130k. He was a $200k per year earner and was recently let go from his job and the only replacement jobs he could find paid $100k per year. With two daughters in post secondary school and all the household bills he was finding it tough to overcome his government debt. Canada Revenue Agency placed a lien on his house for the taxes owing. After reviewing his taxes on our tax recovery program and finding multiple adjustments, Diamond Tree Accounting was able to reduce the amount owing from $130k to $25k. He has since paid CRA off and sleeps much better at night. The previous tax preparer had failed to get the adjusted cost basis of his investments and thus reported a significantly higher capital gain.
A couple had been married for 30 years and raised a couple of children. He is a factory worker and she was a stay at home mom that made small amounts of money here and there. Their earnings were enough to pay the bills but luxuries such as a new been had escaped them and they have been using the same bed they received as a wedding gift 30 years ago. Diamond Tree Accounting put them on our tax recovery program and noticed that she had tried a small business in the year 2000 and $25k that year getting it started. This non-capital loss had never been applied and when we did it resulted in $8,000 in refunds. The couple was able to replace their wedding gift and get a new bed.
A couple came into Diamond Tree Accounting in 2007, and we prepared their taxes for a few years where they received small refunds. In 2010 we put them on our tax recovery program. This allowed us to determine that they had not filed returns from 1986 – 2006 for twenty years. The clients were anxious and scared that one day the government was going to come after them. Diamond Tree Accounting prepared the tax returns as far back as CRA would allow them and she ended up with a $6,000 combined refund and he resulted in $1,600 combined refund. The older couple had been tight on money since retiring to a fixed income and was happy to spend the money on a shopping spree. Also as a side relief they are not scared that the government is going to come after them for unfiled tax returns.