Filing Taxes Insights

Why did you start your business? To keep your business books or to do what you love to do? Your answer to this determines the need for a small business owner in Canada to hire a bookkeeper. Bookkeeping tasks are time-sucker! It isn’t what you are good at, rather it takes you away from your main interest. Most small business owners in Canada feel like they can’t afford or don’t need to hire a bookkeeper. In fact, the advantages of hiring a bookkeeper extend to almost every level of your business. It is a decision you cannot afford to ignore.  […]

Whether you are a real estate baron with multiple properties, or just recently started to rent out a property, we know taxes can be a bit of a tricky subject to tackle for landlords submitting a tax return. And that’s where the Filing Taxes come to play. This article covers how to complete and file a tax return for a rental property in Canada. All rental income must be reported on your personal, corporate, or partnership tax return (depending on how you own the property). What is meant by Rental Income for Tax purposes in Canada? Rental income is any […]

If your small business is collecting  Goods and Services Tax (GST)/ Harmonized Sales Tax (HST) from its customers for the goods and services you have provided them as a business, it is important to understand how to remit those taxes back to the government. Filing GST/HST return also refers to claiming the Input Tax Credits (ITCs). It is the GST/HST you pay on services or supplies that you acquired to run your business. Check the CRA website to see if you qualify for an ITC deduction.  Filing a GST/HST return may seem more complicated than filing your personal income tax […]

Have you recently incorporated your business? Wondering about how to pay yourself? Stuck between the options salary or management fees? Then read on to get your answer. If you own a business through a corporation you can choose to pay yourself a salary or management fee. Let’s discuss the benefits and risks associated with management fees and salary to reach out for a solution that best suits you. Paying yourself a Salary/ Wage from Corporation If you opt to have a salary from your business, the payments are the expense of the corporation and employment income for you personally. How […]

Whether it’s a company restructuring for tax planning objectives or a successful sole-proprietor aiming to incorporate– the Section 85 rollover is a valuable tax deferral tool, used extensively in the Canadian business landscape. If you have decided to transform your existing business into another Canadian entity without having to pay taxes then this blog contains a lot, you need to know!  Purpose of Section 85 Rollover The main purpose of section 85 rollover is to transfer eligible property (with a built-in gain) on a tax-deferred basis from one company (corporation or sole proprietorship for example) to another corporation. Electing to […]

The world of investing for saving purposes can be complicated but it is not necessarily difficult. All it takes is some management and a little advice along the way. Everyone has their own needs and reasons for saving: kid’s education, buying a home making sure to have enough retirement income to last. Whatever your needs, there are different government saving options with different features to cater to your needs, accumulate savings, and encourage smart investments. One of these is the Registered Retirement Savings Plan (RRSP).  What is RRSP? A Registered Retirement Saving Plan (RRSP) is a retirement investment plan system […]

Tax situation of a self-employed Canadian business owner is a bit more complex than that of an employee. So, what is the major difference between being an employee earning a paycheck compared to being self-employed? Well, when you are self-employed there are two areas where you differ from regular employees’ contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI). Who is considered Self-Employed by Canada Revenue Agency (CRA)? There are a ton of various terms for being self-employed. If you are sole-proprietor or a partner of a business, a freelancer, an independent contractor, or even doing Direct sales […]

Businesses in Canada can take three legal structures: Sole proprietorship, Partnership and, Corporation. Each structure has different and important implications for liability, taxation, and succession. In this article, we will discuss the incorporation of sole proprietorship which means converting a sole proprietorship into a corporation. What is Incorporation? First thing is first– What does it mean to incorporate your business? In simple words, it means separating your business from yourself. As a sole proprietor, there is no separation between you, the owner, and your business. Incorporation is the legal process of setting up your business as a separate entity recognized […]