How is Rental Income Taxed in Canada? The real estate market in Toronto and the suburbs has been booming over the last several years because of the favorable economic conditions and the low interest rates. Individuals have invested in rental properties of all sorts. Rental income is generated when you rent a property you own. Rental income could […]
Inadequate Succession Planning According to reports published by CIBC it is expected that 30% or close to 310,000 Canadian business owners will sell or transfer ownership of their businesses in the next five years. The growing number of transfers has a significant impact on the Canadian economy and predecessor owners. The lack of effective tax planning and knowledge has resulted in […]
What is a professional corporation? A professional corporation operates much like a business corporation with few exceptions. A professional corporation has to abide by the regulations set by the Business Corporations Act (Ontario) and by the respective governing body. A professional corporation can-only carry on activities of its profession. A professional corporation must meet the requirements of its […]
The Program Over the past year the Canada Revenue Agency (CRA) has implemented an ‘Offshore Tax Informant Program’ in hopes of fight international tax evasion. The CRA promises to compensate individuals who help catch tax evaders. Program Success The Financial Post has reported that this program has generated over 1,000 calls and has led to over 100 active […]
Capital Losses Vs. Non-Capital Losses Capital Loss A capital loss arises when you sell a capital property you own for less than its adjusted cost base. A capital loss can be carried back three years and forward indefinitely. The inclusion rate for a capital loss is as follows: Year Inclusion Percentage Before 1988 50% 1988 […]
Capital Gains vs Business Income As indicated in our previous articles, the housing market in Canada has attracted many investors. This has allowed real estate investors to make a quick profit. The popularity has also been fueled by the preferred tax treatment on capital gains. In Canada only 50% of the capital gain is taxable at your […]
We help businesses in Mississauga, Brampton, and Oakville We live in an ever changing global economy where the dynamics of business have been revolutionized by the internet. Small business owners face many new risks in this economy. This is why hiring an accountant for your small business is no longer about finding someone good at […]
CRA Audit & Objections Challenge the CRA / Dealing with the CRA? Here’s what you need to know. Every year the Canada Revenue Agency (CRA) audits thousands of small and medium size businesses and issues notices of reassessments. Many times the result of these reassessments requires these businesses to pay up to thousands and sometimes […]
GST/HST Rates Across Canada With eCommerce more and more businesses are selling goods and services across Canada. This has resulted in confusion on which sales tax rates apply. Majority of Canadian businesses must collect sales taxes from customers and remit them to the government. Depending on the province your business operates in, the rates are different. Based on […]
Foreign Income Reporting T1135: Tax Accountant Canadians that have accumulated wealth in other parts of the world need to be aware of the Canadian reporting requirements. If you are a Canadian resident you are required to report foreign assets which have a cost value of over $100,000. On a personal income tax return you must […]