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Filing Taxes Insights

July 22, 2022
Cryptocurrency in Canada

Tax Implications of Cryptocurrency in Canada

Although it’s not fiat currency, crypto is still very real to the CRA. When Bitcoin and cryptocurrencies first became popular, many people saw their investments in them – and maybe their use of them – as something separate from the rest of their income, as they are not fiat (aka ‘real’) currencies. Following this logic, they don’t think that such investments and transactions need to be discussed at tax time. But that’s not the case at all. Cryptocurrency taxes in Canada are not always clear, even to the CRA. But, ‘real’ currency or not, you will need to report your […]
July 20, 2022
Accounting Firm in Canada

What to Consider When Choosing A CPA Accounting Firm?

Every business owner knows that tax laws come with a new twist with the passing of each year. It can be a real challenge to make profitable financial decisions if you are unfamiliar with the new tax law and do not understand how it works. The truth is, hiring a CPA accounting firm in Toronto is always a good idea if you desire to take your business to greater heights. Not only are these Toronto accountants familiar with new tax laws, but they are also capable of offering financial advice, developing budgets, and helping you set financial goals that will […]
July 19, 2022
personal and business account

Why it is Important to Keep Business and Personal Finances Separate?

It might be easier to use personal funds for business reasons for your small business, but it’s not the most brilliant move you can make. If yours is a young small business, while it may appear to be more convenient to maintain your personal and business funds in the same account, it is more efficient in the long term to keep them separate—one for personal and one for business. Here are six reasons why keeping your accounts separate is the best way to go. 1. Easily monitor your company’s financial flow Separating your personal and corporate accounts can help you […]
July 13, 2022
FORM 2209

Form T2209: Reporting Foreign Income

If you are a Canadian resident and make foreign income, you are subject to tax duty to the CRA. Wait, but I’ve already been taxed by the country where the income is made! How is it fair?…as some of you would ask. Relax, reporting your foreign income to the CRA doesn’t mean double taxation. Rather, it is to inform the Canadian government of your sources of income to avoid causing unnecessary confusion or suspicion, not to mention the benefits of claiming the federal foreign tax credits that will help reduce some of your other tax obligations.  So, What is Federal […]
July 13, 2022
self employed audit in canada

Advice for Self-Employed in Canada About Audits

To ensure compliance with the Canadian tax legislation to clamp down attempts at tax evasions, the CRA reviews businesses and individuals for risk assessments every year after the tax season. In most cases for business owners, the review is informal, assessing only parts of your business, such as HST, and requires you to submit certain documents online via the CRA My Business Account. In some cases, however, the CRA may require a formal audit on your entire business if the assessment finds you at higher risk.  What may trigger an audit? Many factors could put you on the CRA’s radar, […]
July 12, 2022
CRA Audit

Getting Through a CRA Tax Audit (Or Surviving One)

So you’ve filed your taxes and received your notice of assessment, but now there’s another letter from the Canada Revenue Agency (CRA) in your mailbox with a request to see more of your paperwork. What do you do? Most likely, what you’re looking at is an inquiry notice. If you’ve claimed, say, a medical expense deduction and filed your return electronically, the taxman may ask you to produce copies of the receipts that prove that you’re actually eligible for the tax break in question. All you have to do is have your papers in order and respond by the deadline, […]
July 12, 2022

What are the ways to avoid Independent Contractor Rules when doing Business in Canada?

An independent contractor is different from an employee, the main distinction is that independent contractors have different legal entitlements compared to employees. An employee has an exclusive one-on-one working relationship with their employer, they are ruled under the employment act and the legislation from the act applies to them, independent contractors are not governed under the same statute they have different employment law protections. Companies may prefer independent contractors in Canada because independent contract taxes are not the responsibility of the company and stand separate from the company’s business tax. However, there are still risks involved with such kind of employment. The risks […]
July 12, 2022
real estate coepration in canada

Transferring Real Estate to a Corporation in Canada

Real estate owners often ask themselves if they should own investment real estate personally or through a corporation. There are certain tax consequences and factors to consider in transferring real estate to a corporation. Do you know which? Holding real estate property personally or in a corporation? Deciding to hold real property in a corporation depends on many factors. To begin, a corporation offers limited liability protection. This element of ownership is often the main influence to transfer real estate to a corporation. This is particularly true in circumstances where a taxpayer owns a multi-unit residential complex, and the risk […]
July 12, 2022
withdrawing from corporation

How to Withdraw Money from a Corporation?

You have worked hard to build your business and create a profitable business. During the first few years, you may have stopped paying to reinvest in your business and grow your business. Now you may be at a point where your business has consolidated, and you are ready to start reaping some of the profits from your business. These ways are essential to understand when employing services like small business accounting. This article discusses some of the more general approaches that business owners can use to withdraw money from a business tax-efficient way. Reward yourself and your family Business owners will […]