A Good Find … If you live in Canada and are curious .. check out the “Canadian Tax Tips Calculator” .. enter some financial information, and print out the report! CLICK HERE: Canadian Tax Tips Calculator – Everywhere Except Quebec CLICK HERE: Canadian Tax Tips Calculator – Quebec only ~~~~ From the TaxTips page The tax calculator (click above to access) uses the federal tax rate reductions announced October 30, 2007. The rate reductions received Royal Assent on December 14, 2007, so are now law. …. Features: * calculates taxes for both spouses * 2007 federal changes included: reduced tax [More]
.. According to Deloitte’s October 2007 TaxBreaks Newsletter It’s a good read … here’s just one of these 15 tax tips .. #10 … 10. Pay a bonus The small business tax deduction (SBD) is available to Canadian-controlled private corporations with active business income of less than $400,000 federally in 2007 (this amount varies regarding provincial and territorial taxes). If the active business income derived from your company exceeds the $400,000 threshold, a common suggestion has been that the corporation pay out a bonus to bring its income below the threshold. However, since 2006, changes to federal and many provincial [More]
There is an interesting article in the July issue of TaxMatters@EY (from Ernst & Young), including information about transferring the cottage to the next generation. From the July Issue: … A gift of property to a child is considered to be a fair market value disposition. And, although gains on the disposition of personal property are taxable, losses are denied. Fortunately, in the case of a cottage, some or all of the accrued gain can be sheltered from tax using the principal residence exemption – by designating the cottage as a principal residence for a selected number of years of [More]
As announced by “Canada’s New Government” in their Tax Fairness Plan of October 31, 2006 … that introduced income splitting for pensioners to increase the rewards from retirement saving effective as of the 2007 taxation year … NEW INFORMATION is now available on the CRA Web site. This will benefit a good handful of my own clients, and in addition to just linking out the CRA news release, I thought I would just post this information again in my blog for clarification! If you are receiving pension income in 2007 other than CPP and OAS greater or less than your [More]
Psssst! Deloitte & Touche, LLP .. has updated their “Quick Tax Facts 2007” publication. It’s worth printing it out these 2 pages and keeping a copy on your pegboard for quick perusal … I keep a printout of something like this on my pegboard for quick estimates while I am on the phone with clients. For instance, if an individual in Manitoba makes $100,000 per year, the combined taxes would be about $32,270. If two individuals each make $50,000 per year, the combined taxes would be about $12,204 each (or $24,408 total). Just knowing this “on the fly” is helpful [More]
In case you were one of those taxpayers that filed your 2006 Personal Income Tax Return in the last week of April 2007 … it’s possible that you haven’t received your official Notice of Assessment for 2006 from Canada Revenue Agency yet. Don’t worry! Canada Revenue Agency has been averaging 8-10 weeks normal assessment time of these tax returns, for those who filed in the last few days of April 2007. From what I can gather, from enquiry over the phone with representatives at the 1-800-959-8281 hotline .. the majority load of these affected returns are in the final stages [More]
Have you been following the Exchange Rates Lately? Here are the average annual exchange rates for the following years by CRA 1995 – USD – 1.3726 1996 – USD – 1.3618 1997 – USD – 1.4267 1998 – USD – 1.5422 1999 – USD – 1.48584024 2000 – USD – 1.48520240 2001 – USD – 1.54841633 2002 – USD – 1.57035976 2003 – USD – 1.40146175 2004 – USD – 1.30152024 2005 – USD – 1.21163240 2006 – USD – 1.13409360 Translation: For $100.00 USD in 2006 … we would convert it to $113.41 Canadian dollars. For 2007 .. Here [More]
* IT SEEMS THAT I AM NOT ALONE! – Received 15,911,443 .. Expected 25,800,000 >> That’s less than 62% of Canadians have filed by April 26th .. 4 days before the deadline. .. Generally, that’s been my experience in Public Practice that almost 1/3 of the tax returns are done in the last days .. just like it is with me personally this year! ~~~~~~~~~ The following is now available on the CRA Web site: Ottawa, April 27, 2007… The Canada Revenue Agency (CRA) would like to remind Canadians that they have until midnight Monday, April 30, 2007, to file [More]
I needed information today, but I managed to call and get through at 7:55am this morning, when it was an automated phone message. It urged me to call back between the local hours of 8:15am and 5:00pm. 1-800-959-8281 I had it my phone on speed dial, and was counting the number of times I reached a busy signal. It did not even put me on rotation, nor did my “phone service” options allow that asterix button to be pushed to automatically call back their number when it became free once again. It is very annoying, and disruptive to my entire [More]
This post is more for myself, as I am posting a reminder for me where to find the following links next month! * http://www.hrsdc.gc.ca/en/hip/cslp/ImportantLinks/02_il_MasterListIndex.shtml * http://www.hrsdc.gc.ca/en/hip/cslp/ImportantLinks/17_il_International.pdf The above links show “The Master List of Designated Educational Institutions” across Canada and around the world. I have a client who pays for tuition for his daughter in Australia, and wonders if the child can transfer tuition paid to the parent, like normal … The answer is: YES … provided.. 1) The school is on the list and is a designated educational institution 2) The student files a Canadian Income Tax Return 3) [More]
The following is now available on the CRA Web site: Did You Know … That you can authorize your representative online if they have registered with our Represent a client service? Authorizing a representative online gives your representative instant, secure access to the information needed to help complete your income tax and benefit return and to complete certain transactions on your behalf. You can authorize a representative online 21 hours a day, 7 days a week. You can also change or revoke your representative’s authorization at any time. All you have to do is log in to the My Account [More]
Line 363: Canada Employment Amount Under proposed legislation, employees are eligible to claim an employment amount. Claim the lesser of: ¦ $250; and ¦ the total of the employment income you reported on line 101 and line 104 of your return. SOURCE: CRA: T1 Guide
The following is now available on the CRA Web site: Ottawa, Ontario, March 6, 2007… Commissioner of the Canada Revenue Agency (CRA) Michel Dorais today instructed some computer applications related to personal income tax filing to be temporarily halted. These applications include online services like Efile, Netfile, and My Account. Mr. Dorais said that he instructed that this preventative measure be taken following indications that CRA computer systems have run into infrastructure problems. In order to safeguard existing systems and to maintain the integrity of CRA’s taxpayer information holdings, Mr Dorais ordered tax filing processes halted. “There is no indication [More]
The following is now available on the CRA Web site: Did you know… That you may be able to reduce your income tax by donating to a registered charity? You can verify whether a charity is registered by searching for it in the CRA Charities Listings. In 2006, the first $200 you donate is eligible for a federal tax credit of 15.25% of the donation amount. After the first $200 of charitable donations, the federal tax credit increases to 29% of the amount donated over $200. You may also be eligible for provincial or territorial tax credits based on the [More]
From the GST Menu from Business Topics over at Canada Revenue Agency (CRA) Ignoring Blockquotes On This Post….. Legislative changes were introduced in 2006 and will be effective on April 1, 2007. The objective of these changes is to simplify tax compliance for businesses by harmonizing various accounting, penalty and interest provisions of the federal acts administered by the Canada Revenue Agency (CRA), such as the Excise Tax Act (ETA), the Income Tax Act (ITA), the Excise Act, 2001, and the Air Travellers Security Charge Act (ATSCA). Key changes for businesses include: New failure to file penalty: A penalty will [More]
I have received this email through my Efile Newsletter correspondence, of all places … A new GST/HST processing system and legislative changes The Canada Revenue Agency (CRA) is replacing its current GST/HST processing system on April 10, 2007. We are also implementing changes to legislation relating to interest and penalties, which come into effect on April 1, 2007. A new GST/HST processing system We are replacing our current system to make it more efficient, strengthen our processes, and improve our service to GST/HST registrants. The new processing system will result in new services and more account information. These changes should [More]
The following is now available on the CRA Web site: Did you know… That businesses with an eligible apprentice may be able to claim the apprenticeship job creation tax credit? This is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices for employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice. For more information about the credit, visit http://www.cra-arc.gc.ca/whatsnew/apprenticeship-e.html Source: CRA
The following is now available on the CRA Web site: Did you know… That if you are a tradesperson you may be able to deduct your tool expenses? The newly proposed tradesperson’s tools deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction applies to the total cost of eligible tools in excess of $1,000 acquired by an employed tradesperson after May 1, 2006. Source: CRA
The following is now available on the CRA Web site.. Did you know… That you can claim, as a non-refundable tax credit, medical expenses for yourself, your spouse or common-law partner, and your children born in 1989 or later? For 2006, the total expenses have to be more than 3% of your net income, or $1,884, whichever is less. You may also be able to claim medical expenses for the following persons if they depend on you for support: you or your spouse or common-law partner’s child or grandchild who was born in 1988 or earlier; and you or your [More]
The following is now available on the CRA Web site: Tax Tip: The age amount has increased .. Did you know… That as of January 1, 2006, the age amount maximum increased from $4,066 to $5,066? If you were 65 or older on December 31, 2006, and your net income was less than $64,043, you can claim the age amount. You may also be able to transfer unused portions of the age amount to your spouse or common-law partner. For more information, visit our Web site at www.cra.gc.ca. SOURCE: CRA Newsroom
There is a Q & A Update about the Tax Credit for Public Transit Passes Beginning on July 1, 2006, the Government of Canada is offering individuals a non-refundable tax credit to cover the cost of public transit passes. If you have a public transit pass, make sure to read the questions and answers below. 1. What is the tax credit for public transit passes? The tax credit for public transit passes is a non-refundable tax credit for the cost of buying a monthly (or longer duration) pass for commuting on buses, streetcars, subways, commuter trains and local ferries. 2. [More]
I thought I would add some clarity to the designation of eligible dividends, as noted in the previous post notice from Canada Revenue Agency .. although you should direct your queries to your own tax preparer or CPA/CA/Accountant for tax professional advice. Background Effective January 1, 2007 the small business limit for Canadian Controlled Private Corporations (CCPC) and all groups of associated CCPCs .. will be increased to $400,000. That means that eligible small businesses will be able to earn $400,000 net taxable income and pay income taxes at a lower tax rate. If the business earns more than this [More]
The following is now available on the CRA Web site: 2006-12-20 Canadian resident individuals who receive eligible dividends in 2006 and subsequent years will be entitled to a higher gross-up and dividend tax credit. Corporations have to designate each eligible dividend that they pay, and notify shareholders in writing that the dividend is eligible. A corporation must make every effort to notify shareholders of an eligible dividend. The following are general guidelines for corporations to follow. A. Notification of Shareholders For the 2006 Year All Corporations For 2006, we will accept designations based on identification of eligible dividends on the [More]
The following is now available on the CRA Web site: Each year since 2000, personal income tax amounts have been indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada. Changes to tax bracket thresholds and non-refundable credits will take effect as of January 1, 2007. Adjustments to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2007, to coincide with the beginning of the “program year” for these benefits. The following chart compares the [More]
PLEASE NOTE: YOU ARE NOT GOING CRAZY! THAT ENVELOPE DIDN’T ARRIVE YET! I just received an email from Canada Revenue Agency to advise my clients of the following: For 2006 and subsequent tax years, taxpayers who had their return prepared by a tax professional in the preceding tax year, and had a resulting nil or debit balance, will no longer receive a tax package from the Canada Revenue Agency (CRA). This basically means that if you had a no balance owing or received a refund and someone like me EFILED your 2005 tax return .. you will not get that [More]
Last year .. on November 27, 2005 .. I blogged about some Year-End Tax Planning Considerations for 2005 that individuals could review and consider. This year .. I thought I would just post some links “OUT THERE” that I have found around the ‘www … from sources that I frequently read or follow throughout the year. PLEASE … if you have written or know of other links out there .. can you post the link in my comments below? I’m sure others will greatly appreciate you as much as HART will! 🙂 And .. if I find anymore links .. [More]
Depreciation We depreciate the value of Fixed Assets over the life of the asset in the financial statements, and generally the method of calculating this amount is specifically stated in the Notes to the Financial Statements as a company policy. It really doesn’t matter what method a company uses to record and calculate depreciation, but the company should continue to use that same method year after year. Generally, there are four different ways to calculate depreciation: 1) Straight Line Method You take the value of the asset less what you think the value will be worth at the end of [More]
The title pretty much says it all .. According to Canada Revenue Agency .. … in excess of 8.3 million T1 returns and 1.3 million SEND requests were processed by our EFILE Systems. By the way .. did you know that you can now E-File Corporation Tax Returns too?
ALTERNATE WORKING TITLE: How to not get dropped like a Hot Potato by your Accountant and Income Tax Preparer I shudder to think how many people are making money online selling items on Ebay and collecting payments using Paypal .. and are not reporting the income on their tax return. It’s OKAY to sell some junk and personal items that you own on Ebay to help recoup the costs of other purchases that you may have .. and you probably don’t have to report the transaction. However, if you are buying and selling products on Ebay for profit .. you [More]
Canada’s New Government Continues to Deliver on Its Tax Relief Plan News Release: August 31, 2006 The Honourable Jim Flaherty, Minister of Finance, today announced that Canada’s new Government is keeping its promise to Canadians by delivering on its Tax Relief Plan. The measures below are part of the Government’s plan to deliver over $20 billion in tax cuts over the next two years, which is more than the last four budgets of the previous government combined. These measures were part of the income tax measures that were proposed in Budget 2006 but not included in the Budget Implementation Act, [More]
It should be noted that included below are tax changes announced which, if enacted by the applicable legislature as proposed, would be effective retroactively to January 1, 2006. At the time of publishing, these proposed changes had not been legislated. Federal tax rates and income thresholds In the Economic Statement and Fiscal Update of November 14, 2005, the tax rate for the lowest tax bracket is reduced retroactively from 16% to 15% for taxable income up to $35,595 for the 2005 tax year. This reduced rate of 15% will also be used for the 2006 tax year and will be [More]
EGADS … sometimes I get SICK of reading all the tips out there on websites .. in blogs .. reading their lists .. their top ten picks .. etc etc .. Most are purely written because some ‘bloggers’ suggest to others that people really want to read tips and lists (do we have a short attention span?) .. and it will increase traffic. Y E T … I’ve been quite fascinated with this site: Sound Money Tips … so, I guess I will make my own list.. since .. It’s got tips on everything! TOP 13 REASONS WHY YOU SHOULD [More]
The Link Leak Project I have decided to participate in this linking project over at the PetLvr blog … for Pet Related blogs .. so I thought I would do the same for accounting and bookkeeping and income tax blogs that are in my RSS Feed reader .. Bloglines. Here are some accounting and bookkeeping and income tax related blogs * NOTE: Accounting and Bookkeeping and Income Tax blogs are not as popular as you might think there are – and are far and few inbetween. As an accountant, bookkeeper, and income tax preparer .. I think that the general [More]