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Top Five Tax Mistakes
1. Even if you don't earn any income, file a tax return. You may still qualify for tax credits and deductions that result in a tax refund.
2. Caregivers are eligible to claim a non-refundable tax credit. This applies to parents taking care of infirm
children 18 or over or children taking care of infirm or elderly parents.
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How to Claim the Home Renovation Tax Credit
The home renovation tax credit (HRTC) is a 2009 non-refundable tax credit available to homeowners who spent on renovating/improving their home after January 27, 2009 and before February 1, 2010. The credit is available on eligible expenditures of more than $1,000 and up to $10,000. The maximum tax credit is $1,350 ($9,000 X 15%).
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Delay RRSP Home Buyers' Plan (HBP) withdrawals until after year-end
If you're planning on using the HBP towards year-end, consider deferring your withdrawal until after December 31st. This will extend your time period for purchasing your home and repaying the amounts withdrawn by one year. You'll also want to delay your HBP withdrawal if you won't be withdrawing the full amount by January 2010.
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Management tip of the month :
3 Survival Lessons from Small Businesses
We hear daily reports of small businesses going bankrupt. But for every small business that goes belly up, there are dozens more that are thriving. Here are three lessons from them on how you can operate your business to survive even the deepest of downturns:
Saving Too Much?
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Employment Insurance Fairness for the Self-Employed
On November 3, 2009, the Government of Canada introduced the Fairness for the Self-Employed Act. This legislation extends Employment Insurance (EI) special benefits, including maternity, parental, sickness and compassionate care benefits, to the self-employed.
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5 Ways to Grow Your Profits
The "5 Ways" are a simple, "secret" formula to help you maximize profit margins in any business.
These are the five simple factors:
1. Leads: The total number of people who have contacted or who have been contacted by the business- over the course of a year.
2. Conversion rate:
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Management Tip of the Month:
5 Traits of the New Creative Leader
Leaders need to be adaptive, flexible, and innovative.
Here are five things you can do to succeed as a creative leader:
1) Instead of commanding, coach your team and organization toward success.
2) Don't manage people, empower them.
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Economic Recession - A Time to Consider Estate Planning
As of last fall, people have seen their real estate and investment portfolios lose their market value. While this is certainly nothing to celebrate, it does provide an excellent opportunity for estate planning.
An estate plan is absolutely essential for organizing your financial affairs and providing for the well being of your family. And what about planning your estate?
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Save on taxes by communicating with your accountant
During a meeting with a client, it wasn't until we started talking about boating that I found out that he had a $35,000 loan outstanding on his boat
He now has about the same amount of debt, but the interest is deductible on his personal tax return Save on taxes by communicating with your accountant
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Back to school : What students and parents need to know.
If you're heading off to university this fall — or you have a child who is — you may be surprised to discover the tax credits and deductions available. Here are a few tips every tax-smart student should know.
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Harmonized Sales Tax : Relief and credits provided
It is proposed that, starting July 1, 2010, Ontario's Retail Sales Tax (RST) would be converted to a value-added tax structure and combined with the federal Goods and Services Tax (GST) to create a federally administered single sales tax. The single sales tax would have a combined tax rate of 13 per cent.
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You could be eligible for a tax credit of upto $1350.
Beginning with immediate effect and continuing until February 1, 2010, home and cottage owners are eligible for the Home Renovation Tax Credit, which offers up to $1350 in tax credits for almost all labour and materials costs related to home renovation.
The program applies to projects worth a minimum of $1,000 and a maximum of $10,000. The maximum tax credit that can be received is $1,350.
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Filing an Objection to the Notice of Assessment for Your Personal Income Tax Return
Once you file your return, the Canada Revenue Agency (CRA) processes it and sends you a Notice of Assessment. If you disagree with your assessment and you are not able to resolve the issue over a phone call
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Filing Reminder for Self-Employed Individual and Spouse
For self-employed persons (if you or your spouse carried on a business in 2008, other than a business whose expenditures were mainly in connection with a tax shelter), your return for 2008 has to be filed on or before June 15, 2009.
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Tax deadlines for 2008 Taxes---File Your Return on Time
The filing deadline for 2008 personal tax returns is April 30, 2009. For self-employed persons (if you or your spouse carried on a business in 2008, other than a business whose expenditures were mainly in connection with a tax shelter), your return for 2008 has to be filed on or before June 15, 2009. Keep in mind, more...
Income Splitting With Family Members
Consider the following legitimate means of shifting income to family members whose taxable income is below the minimum tax rate level of approximately $35,000. This will allow them to take advantage of certain non-transferable credits, as well as lower tax rates. more...
Continue to Deduct Interest on Your Investment Loan
Where you have borrowed to purchase investments, remember that you can continue to deduct interest on the loan even if that investment is sold for a loss. To maintain full interest deductibility, you must reinvest the proceeds you receive for the loss investment in a new investment if the proceeds, more...
Things every Tax payer should know
Measures concerning individuals
Effective January 1, 2009, it is proposed that the basic personal amount and the two lowest personal income tax brackets will increase by 7.5% above their 2008 levels. As a result of these measures: The basic personal amount, more...
Business Tax Update
The small business limit is increased to $500,000 as of January 1, 2009. The limit of the taxable income phase-out range of the expenditure limit for the enhanced investment tax credit (ITC) rate of 35% on qualified Scientific Research and Experimental Development (SR&ED) expenditures increases more...
How Is a TFSA(Tax Free Saving Account) Different From a Registered Retirement Savings Plan?
An RRSP is primarily intended for retirement. The TFSA is like an RRSP for everything else in your life .
Both plans offer tax advantages, but they have key differences.
Contributions to an RRSP are deductible and more...
How to Guard Your Computer and its Information
Select a complex password of letters, numbers and Symbols
Install firewall, anti-virus, anti-spyware and Security software- update often,
Don't try, don't buy and don't reply to spam or Emails that ask for banking information
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Registered Disability Savings Plans
Canadians with disabilities, or who have children with disabilities, have a new way to save money for the future. It's called the Registered Disability Savings Plan (RDSP), and it allows Canadians living with prolonged physical or mental impairments to make more...
Latest Federal tax relief for 2008 and 2009
The Department of Finance has published a summary of tax relief measures for 2008 and 2009. The following measures came into effect in 2009. more..
Tax Savings : The Tax-Free Savings Account (TFSA)
The most significant innovation in the tax treatment of savings in half a century – this is how many experts view the tax-free savings account (TFSA). It was presented in the 2008 federal budget, and like the registered retirement savings plan (RRSP) created in 1957, more..
Automobile expenses Update for 2009
For 2009, the deduction limits for automobile expenses are unchanged: The ceiling on the capital cost of passenger vehicles for capital cost. more..
Overspending and the holidays often go hand in hand.
"It's too easy for people to say, 'Oh, I'll just get this one more gift for so and so,'"
But how about promising yourself a frugal holiday instead? While it's common to associate frugal with cheap, experts say there's a big difference between the two. more..
Fraud Alert!
One of our clients was almost a recent victim of cheque fraud. The client had sent a
cheque of 50,000 to a supplier in Montreal via regular mail. Two weeks later a stop payment was issued on the cheque and a new cheque issued as the supplier had reported
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The migration to IFRS in Canada
Canada is making the move to International Financial Reporting Standards (IFRS) for Canadian Public Companies. The IFRS will replace the existing Canadian Generally Accepted Accounting principles (GAAP) and are being promoted as a single set of globally accepted high-quality accounting
standards more..
Federal Economic and Fiscal Statement
Minister of Finance Jim Flaherty presented the Economic and Fiscal Statement of the federal government this afternoon. Measures are proposed to offer temporary relief to seniors with registered retirement investment funds (RRIFs) and to private pension funds affected byglobal financial market turbulence more..
Ways to reduce your 2008 taxes - Use your capital losses
Under the tax rules, you can use your 2008 capital losses to reduce the current year's taxes on your capital gains.In addition, you may be able to carry your 2008 capital losses back to 2005, 2006 and 2007, and use it to reduce your capital gains
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Are You Overpaying Employment Insurance Premiums?
If you employ family members in your business, do you review whether employment insurance (EI) Premiums should be paid?
We continue to hear of situations where the EI status of family employees is determined for the first time when the family member applies for EI benefits.If the government rules at that time that
the employment relationship is non-arm's length in nature,
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Plan to contribute to your tax-free savings account starting in 2009 The 2008 federal budget contained a new tax measure, creating the tax-free savings account (TFSA).
Starting January 1, 2009, Canadians who are 18 years of age or over can contribute up to
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Canadian corporate income tax rates
If you've wondered how corporate tax rates compare in the various Canadian provinces and territories, please refer to our table of tax rates in effect for 2008, more...
CRA warns taxpayers against mail scam
The Canada Revenue Agency (CRA) is warning taxpayers against a recent fraudulent scheme in
which some Canadians have received a letter that appears to be from the CRA. more...
What you need to know about Ontario Corporate Tax Harmonization
If you own a corporation which is liable to pay Ontario corporate income and capital taxes,
you may have heard of plans to combine the Ontario corporate tax return (Form CT23) with more...
Personal income tax rates for 2008
Curious to know what your tax rate would be in a different province? To find out, more...
Late GST/HST filing: Due diligence defence
The Canada Revenue Agency (CRA) has updated GST/HST Policy Statement P-237, which outlines its position regarding accepting a due diligence defence against a penalty imposed for more....
Tax-free savings account info
The Canada Revenue Agency has published a calculator and brochure relating to tax-free savings accounts (TFSA). more...
What Happens After You File That Tax Return
By now, most Canadian taxpayers (excepting the self-employed and their spouses, who have until June 15) will have filed their 2007 income tax returns. more...
Good news for senior citizens!!
Beginning with 2007 income tax returns, Canadian residents can split pension income with a spouse or common-law partner. more...
