By Anne Van Delst, CPA, CA, LPA Recessions, and even lesser economic downturns, can – and do – ruin once-thriving businesses overnight. While it’s true that economic hills and valleys are beyond the control of small and medium sized business owners, those overnight crashes are often the result of months or years of inadequate planning. […]
We are in the midst of a remarkable economic period. A few weeks ago, ‘inverted yield curves’ brought predictions of an impending recession. In September, the TSX reached a record high and unemployment levels hit historic lows. But warning signs and threats persist, including on-going trade wars, geopolitical tensions in the EU and Middle East, […]
By Wendy Wong, , CPA, CA Senior Manager, Tax & Advisory Services Vehicle expenses. It is one simple line on a tax return, but it can cause all sorts of problems if CRA decides to take a closer look. Recently, we have noticed CRA specifically targeting their reviews on car expenses claimed by a business […]
By Kody Wilson, CPA, CA, CBV, Partner No matter how you slice it, paying for college or university tuition is costly. A 2018 survey of 23,000 students by MacLeans Magazine put the average annual cost of college or university at close to $20,000. For families with young children, the cost will only get higher. A […]
A deemed disposition applies if you choose to convert a property from your principal residence to a rental property, or vice versa. This will result in a capital gain or loss on the property realized from the date of purchase until the date of the deemed disposition.
You’ve sold some real estate and turned a profit. Now it’s time to report the gain to the taxman. The problem is, you took back a mortgage on the sale, haven’t been paid, and the taxes on the gain are going to come out of your pocket!
There comes a time when owner-managed businesses can grow beyond the point where all aspects of the business are effectively manageable by the owner, and when hiring a competent financial controller starts to make sense.
Have you ever considered the possibility of lending yourself money in the form of a mortgage through your RRSP on a property you own?
What if you had enough money invested in your Registered Retirement Savings Plan (RRSP) to cover the remaining cost? Legally, an RRSP cannot own a piece of real estate, but it can lend money, in the form of a mortgage, for a piece of property. Many people are not aware of this option.
The last thing you want when you incorporate your business is for the Canada Revenue Agency (CRA) to label you a personal services business (PSB).
If CRA determines an incorporated individual working as a contractor is just an employee of the company they are working for, they would be deemed a PSB.
There are many advantages to incorporating, and despite the possible pitfalls, it may be beneficial for you to do so. But, it’s complicated and can be confusing. Talk to a tax specialist before you decide.
As you may already know, Finance Minister Bill Morneau released some additional comments the week of October 16th regarding the proposed tax changes. Here are the key points.