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Filing Taxes Insights

September 22, 2021

Crypto Tax Accountant Canada

This is a guide presented by the Canada Revenue Agency (CRA) that covers the Taxation issue on Cryptocurrency. This way, you can comprehend the tax obligations and implement the recommendations mentioned ahead wherever necessary. Tax treatment Even though cryptocurrency is not a legal tender, it is a digital asset that can be used as a medium of exchange for goods and services. This operates through strong encryption and without any regulation from a central bank or authority. The word ‘cryptocurrency’ is referred to Bitcoin and other similar virtual currencies in this article. The income tax implications regarding the transactions involving […]
September 22, 2021

What is a holding company, and when should I set up one?

Worrying about excess cash sitting idle? Well, worry not! You can always invest it by incorporating a holding company. A holding company is an ideal way for holding different assets, including stock shares, real estate, cryptocurrency, etc., without the requirement of an active business income. It is mostly used to hold assets that generate passive income. Moreover, the registration for a holding company is like any other company. Although, you will have to register it either at a regional or federal level. For an official name, you will have to order a NUANS report to ascertain the availability of your […]
September 18, 2021

Tax Benefits of Shareholder Loans

Inclusion isn’t all upside down when it comes to taxes. As in most areas of Canadian law, corporations and their shareholders operate as separate individuals for tax purposes. The Canadian Tax Code devotes a lot of space to try to achieve “integration,” a principle that the same activities should be taxed equally regardless of whether or not they are conducted through a company. For example, company directors, who pay all business profits as salaries or dividends, end up in tax accounts very similar to what they would have if they ran the business in person. While the integration can provide […]
August 27, 2021
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Should I Pay Myself Salary or Dividends from My Corporation?

Should I pay myself a salary or dividends from my corporation? A very recurring question that is encountered by accountants in Mississauga and all over Canada. The method you choose to pay yourself from a corporation has an impact on many different things – and not just your personal income tax.  Is it better to pay yourself a salary or dividends? Being an owner of a Canadian small business corporation, one of your first actions is to determine whether you should pay yourself a salary income or dividends – or both. However, this choice will vary depending on how your […]
August 26, 2021

How To Calculate Modified Internal Rate Of Return (MIRR)

The five key features will help to calculate the modified internal rate of return (MIRR). Overview Key Definition Formula Example Advantages and Limitations OVERVIEW The Internal Rate of Return (IRR) has a conventional method that assumes cash flows arising from a project to be reinvested in the same project. It discounts future cash inflows to net present value. The NPV of total cash is zero when a breakeven sets against the WACC. However, it is risky to invest cash flows in the same project, so IRR has two different calculations for costs of interest rate. PROBLEMS WITH IRR APPROACH IRR […]
August 21, 2021

CHANGE IN USE OF PROPERTY

In 2016, the Canada Revenue Agency (CRA) changed its administrative policy relating to reporting the principal residence exemption. This has made reporting on the disposition or “deemed disposition” of a principal residence more important in recent years. Where a taxpayer owns real property and converts it entirely from personal to income-producing (e.g., rental) purpose or vice versa, the taxpayer is deemed to have disposed of the property at the time of conversion at its fair market value and reacquired it for the same amount.  The concept of a deemed disposition is one we have found is not well understood by […]
August 20, 2021

Three Types of Accounting and Their Importance for Your Business

People often consider accounting and finance to be the same thing. However, both are quite distinct from each other. These have not only different meanings but also different purposes. For instance, accounting relates to the methods of how a business acquires its money and how much it spends to facilitate various expenditures. Finance, on the other hand, entails the procedures of the business as to how it generates the finances and makes business decisions to establish a going concern which means long-term survival and growth of the business. Nonetheless, both accounting and finance are interdependent. Neither finance nor accounting can […]
August 19, 2021

How and Why to Politely Decline the “May We Contact Your Employer” Question

“But you already have everything that you will need….” “It will violate my privacy.” “This is not needed….” These are all the wrong ways to declining this question. It will not serve the purpose and may also lead to other questions. Finding a new job while you’re up to date makes the entire job search process a little more convenient if your current job doesn’t capture your up-to-date resume and try to jump on the boat. After all, you may not find a better job, and you may be spending another happy decade in your current company. If you are […]
August 7, 2021
income tax in canada

How much Income tax will I pay on 55000?

A tax deduction is a deduction that reduces a person’s or organization’s tax burden by reducing their taxable income. Deductions are usually the expenses incurred by a taxpayer during the year that can be claimed or deducted from gross income to find out the amount of tax due. Salary $55,000 Federal tax deduction – $5,768 Provincial tax deduction – $3,046 CPP deduction – $2,807 EI deduction – $869 Total tax – $12,490 Net pay $42,510 Deductions – $24,688 Marginal tax rate 34.3% Average tax rate 22.7% If you earn $ 55,000 a year living in Ontario, Canada, you will be […]
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