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Filing Taxes Insights

July 25, 2022
Independent Contractor or Employee

What’s Better to Hire an Independent Contractor or Employee?

In times of outsourcing, downsizing, and economic cutbacks, it may be advantageous for a company to hire individuals as independent contractors to perform some of the functions that are currently being performed by that company’s employees. However, simply calling someone an independent contractor does not make it so. CRA will look behind the title of an individual to determine whether that person is in fact an independent contractor or an employee. Basically, CRA will determine whether a master-servant relationship exists, which indicates that an employer-employee relationship exists. While there are significant benefits to hiring an independent contractor to perform certain […]
July 25, 2022
Couple Tax Filing in Canada

Filing Your Tax Returns As A Couple In Canada

In Canada, tax returns are always filed separately, which means that you and your partner will continue to file individual tax returns. However, if you’re using tax software, you’ll have the option of “coupling” the preparation of both returns. Filing the two individual returns together can help optimize tax returns by identifying ways in which taxes can be reduced and can help maximize the benefits for each couple. While the process of filing your return doesn’t result in any significant changes, whether you’re married or living common-law, here’s what you need to know about filing your taxes with a partner. […]
July 25, 2022

Why Outsource Accounting for Your Small Business in Canada?

Here are a few compelling reasons to dump Quickbooks in favour of professional outsourced accounting services for your business. Let’s face it: in the business world, accounting has a reputation for being a dull subject. If you’re a small business owner, you’d rather discuss your products and services than your accounting debits and credits unless you work in accounting. As a small business owner, you’ve undoubtedly kept a close eye on expenses, knowing that it’s your responsibility to keep costs low. You might have even done your own bookkeeping in QuickBooks or glanced over your bookkeeper’s shoulder to keep an […]
July 23, 2022

Is Rental Mortgage Interest Tax Deductible in Canada?

Your mortgage interest tax might be deductible in various situations if you own a property in Canada that generates income. Whether it is your primary residence, a rental property, or a place of business or work from home, you can perhaps declare your right for mortgage interest on your property. However, there are several methods for Canadians to comprehend and claim that mortgage interest tax is deductible on real estate. However, today we will look at how to claim it on rental properties in Canada. Is mortgage interest tax deductible on rental property in Canada? According to Canadian government guidelines […]
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” or “traditional”) 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 […]
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 and clamp down on attempts at tax evasion, 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 requiring you to submit certain documents online via the CRA My Business Account. In some cases, however, the CRA may require a formal audit of 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 […]