Below is a list of our most Frequently Asked Questions. If you have a question which is not answered here, please contact us and we would be happy to assist you.
» If I use an automobile for business,Can I receive some extra tax credits?
» Can Travel Costs be included in the medical expense tax credit?
 » If my children attend Private School, can there be some tax credits ?
» Which expenses related to Real Estate Rental Property can be claimed ?
» Can I claim children's fitness expenses?
» Can I employ my spouse and children in the business?
» Can I claim the tax credit for First Time Home Buyers?
» How much can a married couple deposit into Tax-Free Savings Accounts in 2011?
» Can Moving Expenses be claimed as Tax deduction?
» Can I claim the tax credit for Tuition Fees?
» Can I claim the tax credit for Public Tansit Passes?
» My business is in profit but where did the cash go?
» Can you help me prepare a business plan and forecasts for the bank?
» What is my business worth?
If I use an automobile for business,Can I receive some extra tax credits?
Chartered Accountant serving Mississauga Explains
If you drive your own car in the course of your job or your business, you may be able to write off your work related automobile costs against your employment or business income.
Can Travel Costs be included in the medical expense tax credit?
Chartered Accountant serving Mississauga Explains
The travel expenses for the patient including gas, meals, accommodations, for the patient and the attendant for the period to and from the city where treatment is provided as well as during the period of treatment can be claimed.
If my children attend Private School, can there be some tax credits ?
Chartered Accountant serving Mississauga Explains
If your children attend Private School, check with the school to determine if a portion of the tuition fees is eligible for the tuition fee credit or qualifies as a charitable donation.
Which expenses related to Real Estate Rental Property can be claimed ?
Chartered Accountant serving Mississauga Explains
If you own more than one rental property, you may deduct automobile expenses incurred to collect rent or supervise repairs. Lease cancellation payments can also be deducted, but only over the lease term or remianing lease term.
Can I claim children's fitness expenses?
Chartered Accountant serving Mississauga Explains
Yes, you can claim a tax credit for up to $ 500 in fees for eligible fitness programs for each child who is under age 16 at any time during the year. Generally, an eligible program is one that is ongoing and includes a significant amount of physical activity.
Can I employ my spouse and children in the business?
Chartered Accountant serving Mississauga Explains
If you carry on a business, either personally or through a corporation, consider paying a salary to your spouse and/or children. The salary must be "reasonable" in light of the services they perform for the business.
Can I claim the tax credit for First Time Home Buyers?
Chartered Accountant serving Mississauga Explains
If you are acquiring your first home, you may qualify for a non-refundable tax credit for first-time home buyers on up to $5000 of the home's cost(worth up to about 750).A qualifying home is one that is currently eligible for the Home Buyer's Plan.
How much can a married couple deposit into Tax-Free Savings Accounts in 2011?
Chartered Accountant serving Mississauga Explains
The maximum contribution into Tax Free Savings Accounts for 2011 is $15,000 ($5000 for 2009, $5000 for 2010 and $5000 for 2011) per adult.
Can Moving Expenses be claimed as Tax deduction?
Chartered Accountant serving Mississauga Explains
Yes, moving expenses and the cost of selling the home are eligible. This includes real estate commissions, penalties for paying off a mortgage, legal fees, and advertising costs. To make the claim you have to move 40KM closer to a new work or business location.
Can I claim the tax credit for Tuition Fees?
Chartered Accountant serving Mississauga Explains
Yes, Tuition Fees qualify for a non-refundable 15% Federal Credit for 2010 if you pay them for yourself. You may be able to claim certain tuition fees paid for your child or another person based on predfined transfer rules.
Can I claim the tax credit for Public Tansit Passes?
Chartered Accountant serving Mississauga Explains
Yes, you can claim a non-refundable tax credit for public transit passes of at least monthly duration purchased for you. Eligible transit includes local and commuter buses, streetcars, subways, commuter trains and local buses. If you are entitled to claim the credit, be sure to keep your receipts or transit passes themselves on file.
My business is in profit but where did the cash go?
There are a number of reasons why a company may be profitable but has no liquid (cash) assets.
- money could be invested in high levels of stock and work-in-progress
- turnover may be high but customers may be slow to pay
- early payment of liabilities
- investment in fixed assets such as buildings or plant and machinery
- seasonal variations in the business cycle resulting in high sales in one period and a lull in others
- poor cashflow can be an indication that the company is overtrading - but you'll have to call us in to explain that one!
Can you help me prepare a business plan and forecasts for the bank?
Yes. Come and talk to us today!
We'd be delighted to put forward a proposal for your consideration.
What is my business worth?
The most widely used valuation methods to value your business are the dividend method, the earnings multiple method, the discounted cashflow method and the asset-based method. Valuing a business is a complex task. We at SJ Chartered Accountant have the required competencies and experience to assist and advise you on valuing your business. Below is a brief description of each method.
- Dividend yield: This basis of valuation is considered appropriate when evaluating a minority shareholding. This method calculates the value of the business by dividing the dividend by an appropriate dividend yield.
- Price earnings: This basis of valuation is considered appropriate when evaluating a majority shareholding. This method capitalises the appropriate sustainable after tax earnings at an appropriate price earnings ratio in order to arrive at a valuation.
- Discounted cashflow: This basis of valuation is considered appropriate when evaluating a majority shareholding. This method calculates the value of the business by discounting the future cashflows by an appropriate discount rate.
- Asset-based: This method looks at the assets of the business and values based on the fair or open market value of the assets. This method is normally most appropriate when valuing a majority shareholding and/or when the other methods above are not appropriate due to negative earnings, a zero dividend policy or a negative net present value cash position.
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