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Filing Taxes Insights

January 6, 2022

Importance of Choosing an Expert Tax Partner

Doing your own taxes can be fun if you like the challenge, but for people who do not have the time or the patience to complete this challenge, hiring the services of a tax professional is the only way to go. You can easily find a tax professional anywhere you go; however, can all tax pros deliver? In every profession, you will find experts, novices, and everyone in between, but when it comes to doing your taxes, especially your business tax returns, you should choose carefully and choose only the best to avoid making unnecessary claims, which may result in […]
January 5, 2022
Dual Citizenship

US-Canadian Dual Citizenship Tax Issues

Dual citizenship provides many benefits, including job mobility and voting rights. It provides a platform for individuals to travel for long periods between countries for personal and professional reasons, without restrictions and without being required to apply for a visa. Canada and the United States have different tax filing requirements and regulations depending on the citizenship and residency of the taxpayer. As mentioned above, in Canada, one’s tax filing requirements depend on the residency of the taxpayer, while in the United States, the tax filing requirements are based on your U.S. person status, such as U.S. citizenship. For over one […]
January 3, 2022
Blogger/Vloggers Tax

Blogging/Vlogging Income in Canada: Taxation & Tax Tips

As we now live in a social media-driven world, blogging and vlogging (video blogs) activities have been on the rise. These activities have become so profitable that many individuals have been pursuing them on a full-time basis and earning significant income to support their lifestyles. Since blogging is sometimes treated like a paid hobby that can be pursued along with a traditional job, unlike other professions requiring certain man-hours, many bloggers ignore the fact that income made from blogging is also subject to taxes. Being a blogger or influencer can be a rewarding career with plenty of perks, but when […]
December 29, 2021
Income Splitting

Tax on Income Splitting (TOSI) in Canada – 2020

No one wants to pay more taxes than they have to, that is why many Canadian taxpayers might choose to alleviate some of the tax burdens through a practice called “Income Splitting”. Canada Revenue Agency’s (CRA) definition of Income Splitting Income sprinkling – sometimes referred to as “income splitting” – is a strategy that can be used by high-income owners of private corporations to divert their income to family members with lower personal tax rates. In simple words, income splitting is the transferring of income from a high-income family member to a lower-income family member to minimize the overall tax […]
December 27, 2021

Capital Gain On Sale Of Business Assets

It is important to contact the tax office whenever the owner changes into a single owner, a partner in a partnership, or a member of the company’s board of directors. Depending on the structure of your business, changing the owner will have a different impact on your business. Depending on your partnership agreement and if your business was registered using the official names of each partner or the operating name of a provincially registered partnership, it may change the legal name or require the registration of a new company number (BN ) and the CRA program account. It is important […]
December 27, 2021

Part IV Tax

The purpose of Part IV is to prevent the deferral of dividend income tax from the portfolio through private companies or other closely controlled companies. Since companies are generally allowed to deduct dividend income when calculating their taxable income, Part IV imposes a tax on dividends received from private companies or closely controlled companies in order to remove the incentive for individuals to obtain a significant deferral of dividend income tax. Part IV of the tax is intended to approximate the tax that would be paid by the taxable person with the highest marginal rate if the individual received dividends. […]
December 27, 2021

Why Are Bonuses Taxed So High In Ontario?

The bonus becomes part of your total salary for the year. Let’s say your salary is $ 36,000, and your employer gives you a $ 500 bonus. You must now be taxed as if you were earning $ 36,500. Bonus calculations need to be changed to increase annual income. Labour insurance (EI) is an equal percentage of earnings up to an annual maximum. The Canadian Retirement Plan (CPP) equates to a percentage of earnings in excess of $3,000 up to an annual maximum. The first $3,000 of earnings are not intended for retirement. This exempt amount is spread over all […]
December 25, 2021

SRED: A Complete Guide & How to Claim it? 2022

Introduced in the 1980s, the Scientific Research & Experimental Development (SRED) is a federal tax incentive program administered by the Canada Revenue Agency (CRA), which issues over $6 billion in tax credits annually for qualified research and development work. The government of Canada supports innovation and entrepreneurship through this program. What is SRED in Canada? SRED (or SR&ED) refers to the Canadian Government’s “Scientific Research and Experimental Development” program. It is a generous incentive program that encourages and rewards businesses of all sizes and in all sectors for conducting research and development to create new or improve existing products, processes, […]
December 24, 2021
Home Office Expenses

Home Office Expenses – Comparing Employees and Self-Employed

Due to the pandemic, home office expenses have become the hot topic in taxation. Many people were required to work from home, and others started side gigs to make ends meet. Read on to find out what you can claim as home office expenses if you’re an employee or self-employed. Eligibility to claim Home Office Expenses To claim your working from home expenses you must: be working from home to fulfill your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls incur additional expenses because of working from home. You can claim a […]