Employee Tax Strategies

If employment earnings include commissions, you may be able to claim certain expenses for which you have not been reimbursed. Form T2200, Declaration of Employment Conditions, must be completed, signed by the employer and submitted with your tax return.
You should exercise caution before taking for granted that certain payments made by employers to employees are […]

The Value of Praise Revisited

As parents we often wish to support our children to achieve their maximum potential and one of the ways in which we do this is through the use of praise. When we see our children successfully complete a task there is often a feeling of joy and celebration at their mastering a new skill. In […]

Charitable Donations

When donations are made to registered charities, copies of the receipts must accompany personal tax returns. Corporations are required to list any donations with the charity registration number.
The Charity Tax Credit is based on 17% of the first $250 and 29% of the balance up to 20% of net income.
A charitable donation is a tax […]

Small Business Company Advantages

A Company qualifies as an SBC, Small Business Company, if at least 90% of its assets are used for active business purposes carried on primarily in Canada.
A CCPC, Canadian Controlled Private Company, holding only shares or debts of other companies may qualify, subject to those other companies are also being SBCs.
If corporations reinvest all their […]

Retirement Income Splitting

Income splitting is important for everyone, and especially so for senior citizens. If you receive Old Age Security (OAS) benefits, your entitlement is clawed back at the rate of 15% of your taxable income in excess of $53,215. Splitting income between seniors reduces the total amount clawed back as well as saving on their income […]

Business Income Splitting

When running your own business, there are a number of income splitting opportunities.
Many of these options apply whether or not the business is incorporated. You can hire your family and pay them a salary.
If a corporation is an SBC, your spouse and children can be shareholders and receive dividends, without concern for the corporate […]

Another CRA RRSP Tax Trap

Wanted: Dead or Alive. Your Taxes
It is important to note that RRSP’s have been set up to ensure that the Canada Revenue Agency (CRA) benefits from the removal of funds, whether you are dead or alive.
It has been a regular practice of advisors to suggest that there needs to be an assigned beneficiary to your […]

100% Deductible Business Expenses?

What business expenses can be 100% deductible?
Good question.
One that your email box would not be large enough to list or our memories large enough to contain all the items.
The answer is much simpler than the question.
All expenses that are incurred 100% legitimately for business purposes are 100% deductible. You just need the right “Business Statement:” […]