Insights

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 […]

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 […]

A comprehensive guide in this article is discussed for Canadian business owners facing decisions of whether to take dividends or salary from their corporation. In this article, the tax implications, benefits, legal considerations, and financial goals associated with each compensation method are discussed for entrepreneurs to make informed decisions.  Is it better to pay yourself […]

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 […]

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 […]

"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 […]

A tax deduction is a deduction that reduces a person's or organization's tax burden by reducing their taxable income. Most of the time, deductions are expenses that a taxpayer has to pay for during the year that can be claimed or deducted from gross income to figure out how much tax he or she has […]

Running a business is a hard mountain to climb, and naturally, you want to keep as much of what you make as possible. If you’re self-employed, you already know how stressful tax preparation and tax filing can be – keeping track of receipts, staying up to date on the Canada Revenue Agency’s tax policies, and […]

Generally, all businesses in Canada are allowed to deduct expenses from their income, that are incurred not only to make the business operational but also to sustain that business once it is up and running. The CRA has a list of the common business expenses that you can write off. The prerequisite for any write-off […]

Your tax status marks a strong impact on your Canadian Income Tax. The motivation for you to be an independent contractor and not an employee is that the independent contractors have far more write-offs and pay a far lower tax rate than employees. This allows them to retain more after-tax cash in their hands. The CRA uses specific criteria to determine your tax status as an employee […]

If you're a business owner in Canada, you are likely all too familiar with company taxes. It's a vital a part of doing commercial enterprise, but that does not suggest it's any much less complex or tough to navigate. The key to saving on company taxes lies in understanding the tax, from federal and provincial […]

Conferences can be great places to generate ideas, learn about trends, network with other professionals, and promote your business. The Canada Revenue Agency (CRA) allows you to claim travel expenses as corporate deductions, but the agency has special rules for Conferences. If you want to take advantage of the Conferences and maximize the payback potential, […]

In Ontario, new condominiums go through a so-called period of temporary employment (or simply "occupation") before final closure. This is the time period when you have the right to occupy the unit, but technically you do not yet own it. This is unique to apartments and does not happen in owned properties that go until […]

If you are planning on incorporating your business in Mississauga or anywhere in Canada, one of the most important decisions that will take you in the right direction is to find the right professional accountant. An accountant is well equipped with all the latest rules and regulations. Hence, he is in a better position to […]

This is actually a common question, and it’s really important that you do it right. How do you do this, depends on various factors with your pre-existing business, as well as your new holding company. You can surely transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a […]

If you are a member of a trade union or professional organization, you can deduct certain types of union contributions or professional membership dues from your income tax applications. The amount of union fees you can claim is listed in box 44 of your T4 tickets or receipts and includes any GST/HST you have paid. […]

How to Deal with Unpaid Back Taxes? Well, the first thing is don’t panic. There could be various reasons why a person wouldn’t have paid their taxes. You could owe a significant amount of money and not be able to afford to repay, business hardship, life threatening illness, paying taxes might have slipped out of […]

Whether you are preparing your first tax return or you are a seasoned tax preparation professional, a checklist of what is required to prepare a tax return is essential to make sure you are not leaving any money on the table. Whether you hire a tax accountant or do it yourself, you need certain information […]

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 […]

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 […]

Tax Audit– a dreaded word for any taxpayer. There is one thing we do not want to see in our mailbox, it’s a letter from the Canada Revenue Agency. Even worse, if it is a letter from CRA informing us that we are being subject to a tax audit. Should that happen, professional support from […]

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 […]

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 […]

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 […]

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 […]

Terminal Loss Definition by Canada Revenue Agency (CRA) Line 9948 – Terminal loss states that you have a terminal loss when you have no more property in class at the end of a year, but you still have an amount you have not deducted as capital cost allowance (CCA). CCA is the deduction you can […]

Disclaimer: Before you consider which amount is tax-deductible in Canada and which is not, you need to consider whether the amount under consideration is a business donating some amount to a charity that is registered or if it is a corporate that is entering into a sponsorship agreement with any other entity. In addition to […]

Sole proprietors, including store owners, tend to do all the work themselves. However, following the right steps can help you reduce your tax burden. Paying tax on time and filing your reports correctly can help you save money on taxes. Below are some tips to help you file your taxes for a sole proprietorship in […]

Small business owners are always looking for ways to save money, and there’s no better time than the present. In order to do this, you need to find loopholes in the tax code that can help you reduce your tax burden. Here are 5 of them so that you can make a plan for next […]

Hypo-tax is the amount actually deducted by the employer. Although most of the taxable benefits associated with a transfer are not included in the calculations for the initial tax settlement, hypothetical taxation often applies to the following types of payments: Basic salary Bonuses + commissions (if applicable) Housing allowance Travel allowance Stock options equity compensation […]