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More on the Federal Budget 2019

Easier Access to Scientific Research & Experimental Development Program (SRED)

• Canadian controlled private corporations (CCPCs) are entitled to a very generous refundable tax credit of 35% on qualifying annual SRED expenditures, up to a maximum of $3 million of expenditures.
• A CCPC is a private corporation, not public which is traded on the stock exchange, and is controlled by a Canadian resident. A Canadian resident for tax purposes is a question of fact based on residential ties.
• Before the federal budget, the SRED expenditure limit and resulting tax credit were reduced the higher the business income.
• After the budget, a CCPC can get this credit irrespective of income.
• This change also bodes well for companies doing research and development work for climate change.

100% Tax Deduction on New Zero Emission Vehicles up to $55,000

August 17, 2019, Small Business Needs

Even though the big investors are betting for the music to stop with a global downturn, there is a way to keep dancing and weather the storm. They could be wrong about the recession. John Lennon said, “life is what happens when you are busy making other plans”. Although I believe in this adage as well (my creative right side of my brain is to blame), the left side of my brain, the analytical and methodical side, has some tips for the new headwinds.

March 21, 2019, Personal Income Tax

Welcome Spring with a Budget that is a breath of fresh air!
“Protecting the environment and growing the economy go together.”
Government of Canada

December 13, 2018 – Small Business Needs

On November 21st Finance Minister Bill Morneau unveiled the 2018 Fall Economic Statement. Canada’s economy is strong and growing, at 3% it had the strongest economic growth of all Group of Seven (G7) countries in 2017. To continue this growth, Morneau delivered a Christmas mini-budget wrapped with good government and tax breaks. It emphasizes that government has an important role to protect the environment and consumers. Doing business in Canada will be even easier. As my old professor would say, “Tax is a microcosm of life”.

December 13, 2018 – Personal Income Tax

A wise old man said to me once, “A good deed a day is enough, and sometimes it doesn’t hurt to say, say a little prayer to God”. Apart from the reciprocating benefits of doing a good deed, and perhaps getting a nod from God, there are tax benefits too! As my old tax professor would say, “Tax is a microcosm of life”. Here is my list of good deeds this Christmas:

December 13, 2018 – Personal Income Tax

The benefits of taking care of our elderly are indeed reciprocating, both for the caregiver and the loved one. Apart from these precious moments in time, there are tax benefits too! As my old tax professor would say, “Tax is a microcosm of life”.

October 2, 2017 – Small Business Needs

Dear Client,

Let’s face it, taxes are not something the public likes, nor understands. When it comes to taxes, most of you want to know to two things, where do I sign, and how much do I pay? Of course there’s a smile on your face when you get money back ☺.

February 26, 2017 - Personal Income Tax

• RRSP Contribution Deadline Wednesday March 1, 2017.
• Your RRSP deduction limit shows up on you Notice of Assessment for 2015 taxes filed.
• Go to CRA’s Online Service: My Account, click on link below to set up for instant access to some of your tax information.

April 8, 2017 – Personal Income Tax

How much do we each pay for our health care in Ontario?

Health care has been in the news lately south of the border. Our health care in Ontario is paid through our personal tax system. The Ontario Health Premium is included on our pay stubs as part of income tax withheld, but did you know how much? The premium ranges from $0 if your taxable income is $20,000 or less, to $900 if your taxable income is more than $200,600.

April 25, 2016 – Personal Income Tax

What we used to call the “Harper Tax Credits” will disappear after you file your tax return this year. Personally, I don’t think that taking these away is a bad thing because these are things that don’t enhance the productivity of the economy. The federal budget of March 22, 2016 also unveiled a middle class tax cut, a boost to student grants and the guaranteed income supplement for single low income seniors, and a new high tax bracket rate.

Estate Planning Checklist (Part 1)

October 20, 2014 – Personal Income Tax

Do you want to give some of your estate away today during your lifetime to family, friends, and/or charity? – Yes/No

Gifting Your Estate During Your Lifetime – Pros

• You get to see your gift enjoyed.
• Gifting money to young adult children (over the age of 18) lets them invest and pay tax on their returns at lower tax rates if they’re in a lower tax bracket than yours.

Do you want to give some of your estate away today during your lifetime by way of a living trust to those who are entitled to benefit from it, your beneficiaries, such as family, friends, and/or charity, while you still have legal control of those assets? Yes/No

Living Trusts set up during your lifetime – Pros

• Providing For Beneficiaries Who Can’t Manage Assets On Their Own – You can provide for dependants with special needs, beneficiaries of a complicated estate who don’t have the expertise to manage it, management of a minor’s inheritance to be received in a lump sum when he or she reaches 18 by spacing it out, with a living trust.

March 13, 2014 – Personal income Tax

• Safety deposit box payments made after March 20, 2013 are no longer deductible.
• Adoption expense tax credit has been enhanced to claim eligible adoption expenses earlier than before; from the time an application is made for registration with a provincial ministry responsible for adoption. This allows certain expenses such as provincially required home study and fees to complete adoption courses to be claimed.
• A first-time donor super credit is applicable for donations up to $1,000 made after March 20, 2013 to December 31, 2017. First-time donors are defined as follows: neither they nor their spouse or common-law partner have claimed a donation credit since 2007. In terms of tax savings, the super credit is worth an extra 25% on the first $200 of donations, or $50 in extra tax savings, and an extra 25% on the next $800 of donations, or $200 in extra tax savings.

March 13, 2014 – Personal income Tax

1. Minimizing income taxes and other taxes or “probate fees” payable on death.
2. Ensuring liquidity to pay taxes at death, for example, with life insurance, or by paying capital gains tax with instalments over ten years.
3. Providing an orderly transfer of assets to the next generation.
4. Delaying taxes on assets transferred to your spouse.
5. Maintaining control and management over assets transferred.
6. Protecting assets from creditors.
7. Providing income to meet retirement needs.
8. Maximizing after-tax income if disabled and authorizing someone to act on your behalf.

December 3, 2013 – Personal Income Tax

December 2011

Dear Client,

Happy Holidays!

I would like to take this opportunity to thank you for letting me serve your accounting and tax needs. I look forward to working with you for a prosperous 2012.

This blog discusses Year End Tax Tips. While minimizing taxes is important, the year-end tax tips should not take your attention away from making sound economic decisions with your financial planner when it comes to investment strategy.

December 3, 2013 – Small Business Needs

November 2011

Dear Client,

If you are a small business owner and you have a corporation, you can compensate yourself with a salary from your corporation, a dividend, or both. This blog uses a decision tree to help you with this.

December 3, 2013 – Personal Income Tax

October 2011

Dear Client,

Welcome to my blog! The old format of my newsletters discussing both Small Business Needs and Personal Income Tax will now each be posted as an alternating new blog to my website periodically. As promised in my last newsletter, I was going to discuss planning for the succession of the family cottage and tax implications, and my first blog uses a decision tree to help you with that.