Rental Property Tax Filing in Canada: Step-by-Step
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 […]
Canada Revenue Agency (CRA) Tax Audit
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 […]
How Do Canadian Small Businesses Pay GST/HST?
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 […]
How to pay yourself from a corporation: Management Fees vs Salary
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 […]
Section 85 Rollover – Tax Fee Transfers
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 […]
How Self-Employed Business Owners pay CPP and EI?
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 […]
Tax Implications of a Terminal Loss
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 […]
Are Sponsorships Tax-Deductible in 2022?
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 […]
4 Tax Tips for Sole Proprietors in Canada
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 […]
5 Tax Loopholes for Small Business Owners in 2022
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 […]
Is Hypo Tax a Pre-Tax Deduction?
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 […]
How to Amend Your Tax Return After You Have Filed?
Made a mistake on your tax return or forgot to claim a tax credit or deduction – Don’t worry you can fix it! It is not as difficult as you might think. CRA acknowledges that the tax code is complex, and that people make mistakes or miss out on some important information. Hence CRA makes […]
7 Important Questions to Ask an Accountant in Oakville Before Hiring
As a business owner, you do it all. Do-it-yourself bookkeeping and accounting can help you through the early days of getting your business off the ground. But it takes away your time you could have spent on other revenue-focused duties. Canadian business market has quite a diversity when it comes to small and medium entities. […]
What is Better to Use – An Accountant or Tax Software?
Every turn of the century is opening doors for rapid technological advancement, increasing dependency on technology to accomplish targets of our life. This drastic technological development is compelling everyone, from individuals to large entities, to look for technological evolution in every aspect. The tax world is no exception to it, where there has been an […]
How Long Should I Keep My Tax Records – Canada?
Whenever a tax season rushes towards its end, taxpayers make the country a bustling town. Taxpayers are busy screening, organizing, and shredding thousands of tax documents. Everyone juggling around with documents is banged with common questions likes – for how long should I keep my tax records? When is it safe to scrap old tax […]
Guide on How to Catch up on Your Fallen Behind Bookkeeping
So your business has fallen a little behind on bookkeeping, don’t panic. It happens to small business owners everywhere for many different reasons. Bookkeeping often falls low on the priority list for business owners. Organizing the documentation of business transactions piled up in the shoebox over time can be a nightmare. If your business has […]
Notice to Reader (NTR) Financial Statement
Purpose of Financial Statements The objective of financial statements is to provide information about the financial position, performance, and changes in the financial position of an enterprise that is useful to a wide range of users in making economic decisions (IASB Framework). Following are the main users and their respective use of financial statements: Managers: […]
Change in Year End of a Canadian Business
Why would a Company want to change its Fiscal Period? Fiscal year-end remains the same year after year unless there is a dire need for it to be changed. A company changes its fiscal period for various strategic reasons. Reasons may include operational convenience, liquidity reasons, industry benchmarking, seasonal fluctuations of the business, financial reporting […]
Capital Gains Tax Accountant Near Me
Definition of Capital Gains Capital gain is the profit earned on the sale of a ‘capital asset’. Canadian Revenue Agency (CRA) defines securities in the form of shares, investment properties, bonds, and stocks as well as real estate as “capital assets”. Capital gain results when the selling price of an asset exceeds its purchase price. […]
Meals and Entertainment CRA Corporate
Tracking your Meals and Entertainment CRA Corporate may appear to be something only certain types of dieters may do. But did you know that spending on these activities can actually save you tax money? There is no definite or precise rule to determine the deduction of your meal and entertainment expenses. It is a subjective […]
Hiring A Good Tax Accountant Toronto
There are two basic options when it comes to filing taxes in Canada i. Handle it yourself. ii. Hire a tax accountant. Let’s resolve this basic dilemma of every taxpayer together by reading through the article. When is it appropriate to file taxes yourself in Canada? The foremost factor to consider is whether you have […]
4 Things You Must Know About Canada Disability Tax Credit
If you are thinking about applying for Canada’s Disability Tax Credit (DTC), four decisions made before you file Form T2201 will do more for your claim than anything you write after it. Most refused or under-claimed DTC files fail on one of these four points: the eligibility test was misunderstood, the wrong evidence was sent, […]
How COVID-19 Government Updates Affect You & Your Taxes
This post was first written in early 2021, when COVID-19 support programs were still running and their deadlines were moving. That world has now closed — and that is exactly why this post has been rewritten. The Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) and the other federal COVID-19 benefits have ended, […]
What is The Canada Disability Tax Credit?
The Canada Disability Tax Credit (DTC) is a federal non-refundable tax credit that reduces the income tax payable by a person with a severe and prolonged impairment in physical or mental functions — or, where the person cannot use the full amount, by a supporting family member to whom the unused amount is transferred. It […]