Tax & Accounting Services

Tax-Saving Tips and Tax News December 2018

Tax-Saving Tips and Tax News As the 2018 year draws to a close, I want to share with you some tax savings tips and upcoming changes in taxes. Canada Caregiver Credit Do you have someone dependent on you for support because of a mental or physical infirmity? You may be able to claim the Canada Caregiver Credit. Medical The medical expense credit regarding service animals is being expanded to include animals especially trained to perform tasks for a patient with mental impairment. For example, it includes a psychiatric service dog trained to assist with post-traumatic stress disorder. For a list Read More

The Disability Tax Credit November 2018

What is the disability tax credit? The disability tax credit (DTC) is a non-refundable tax credit that is claimed on your personal tax return if you, a spouse or a child qualifies for it. A non-refundable tax credit means that the credit can reduce your income taxes to $0 but any unused part of the credit is lost. If you have no taxable income, or your taxable income if offset completely by other credits, the disability tax credit will have no impact on your tax return. Non-refundable credits are claimed at lowest tax rate. For example, federally, the lowest tax Read More

Passive Investment Income in Private Corporations – December 2017 Update

In July 2017 the Department of Finance proposed measures to change several tax planning strategies that are currently available to owners of private corporations in Canada. In October 2017, the Government announced that it is going ahead with the Passive Investment and Income Sprinkling measures. Passive Investment Income Under the current rules, a private corporation can accumulate earnings and make passive investments. This allows for a tax deferral opportunity as the income is subject to the corporate tax return rate and not taxed to the owner-manager of the company until it is paid out of the corporation. The Government has Read More

Income Sprinkling Using Private Corporations – December 2017 Update

In July 2017 the Department of Finance proposed measures to change several tax planning strategies that are currently available to owners of private corporations in Canada. In October 2017, the Government announced that it is going ahead with the Income Sprinkling measures and Passive Investment measures. Income Sprinkling When family members are issued same or different classes of shares in a Canadian private corporation and receive dividends based on those shares, this is considered a type of income splitting if those family members are not directly involved in the corporation. On October 16, 2017, the Minister of Finance announced: “the Read More

Tax Savings Tips and Tax News December 2017

As the 2017 year draws to a close, I want to share with you some tax savings tips and upcoming changes in taxes. New Canada Caregiver Credit Effective 2017, the existing infirm dependant credit, the caregiver credit (for in-home care of a relative) and the family caregiver credit have been replaced by the Canada Caregiver Credit (CCC). The CCC can be claimed for a person over the age of 18 who at any time in the year is dependent on you for support because of a mental or physical infirmity, and is: – your or your spouse’s or common-law partner’s Read More

I’ve been named executor, what do I need to know for taxes?

Lucy has been named the executor (also referred to as estate trustee) in her aunt’s will. Her aunt passed away November 5, 2016. Lucy calls me in February to find out what she needs to do and we have the following conversation: Lucy: I heard that the executor has six months to file the final tax return, is that right? Viviane: It depends on the date of death. When a death occurs from January 1 to October 31, the due date is April 30th of the following year. If a death occurs from November 1 to December 31, the due Read More

Lord of the land – what you need to know about owning a rental property

In medieval Europe, with small farms spread out over a large area, where robbers would attack travellers and invaders plunder the villages, landlords came to rescue and offered protection in exchange for a share of the crops. These days the role of the landlord is much different, but being a landlord still has its share of tribulations in trying to find the right tenant, unexpected repairs, and of course, how to properly report everything for tax purposes. The property purchase When you buy the rental property, the purchase price must be allocated between the building and the land. Why? Because Read More