Tax Tips & Business Matters
02/29/2024
Tax Tips and Traps 145 2024 - 1st Quarter
Tax Tidbits
Some quick points to consider…
- The 2024 RRSP contribution limit is $31,560, requiring earned income in 2023 of at least $175,333. The 2025 limit will be $32,490 (requiring earned income in 2024 of at least $180,500).
- The annual TFSA contribution limit for 2024 is $7,000.
- The annual interest rate charged by CRA on late tax and installment payments has increased to 10% for the first quarter of 2024. Additional penalties may apply on underpaid installment payments.
- Over 6,100 audits on COVID-19 wage subsidies have been completed or are in progress. In terms of dollar figures, $8.9 billion in claims have been audited, and $7.5 billion in claims are currently being audited. Of the audited claims, $458 million of claims have been denied.
12/13/2023
Tax Tips and Traps, 2023 - Year-end - Speical Edition
December 31, 2023 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation.
SOME 2023 YEAR-END TAX PLANNING TIPS INCLUDE:
1) Certain expenditures made by individuals by December 31, 2023 will be eligible for 2023 tax deductions or credits, including digital news subscriptions, moving expenses, labour mobility tax credit expenditures, multigenerational home renovation expenditures (NEW), child care expenses, charitable donations, political contributions, registered journalism organization contributions, medical expenses, alimony, eligible employment expenses, union, professional or like dues, carrying charges and interest expense. Ensure you keep all receipts that may relate to these expenses.
2) A senior whose 2023 net income exceeds $86,912 will lose all, or part, of their old age security pension. Senior citizens will also begin to lose their age credit if their net income exceeds $42,335. Consider limiting income over these amounts, if possible. Another option would be to defer receiving old age security receipts (for up to 60 months) if it would otherwise be eroded due to high-income levels.
3) If you own a business or rental property, consider making a capital asset purchase by the end of the year. Many capital assets purchased and made available for use in 2023 will be eligible for a 100% CCA write-off under the immediate expensing rules.
Some zero-emission electric vehicles purchased by businesses may be eligible for a 100% write-off (limited in some cases to the first $61,000). Alternatively, zero-emission vehicles purchased in 2023 may be eligible for a federal incentive rebate of up to $5,000.
11/10/2023
Tax Tips & Traps 143, 2023 4th Quarter
Tax Tidbits
Some quick points to consider…
- CRA has produced various basic tax education and literacy tools, such as seven learning modules with videos and quizzes.
- As of January 1, 2024, where more than five information returns of a particular type (such as T4s, T5s, T3s, T4As, NR4s and T5018s) are filed on paper (as opposed to electrically) for a particular filer, a penalty of $125/form will apply. Businesses filing five or fewer forms can still do so on paper without penalty.
- Renovations to create a safe play and therapy area for a child with a mental
09/07/2023
Tax Tips & Traps 143, 2023 3rd Quarter
Tax Tidbits
Some quick points to consider…
- Most CPP retirement, disability, survivor and child benefits can only be paid retroactively for up to 11 months after applying. Make sure to apply on time to avoid losing access to benefits.
- The Canada Disability Benefit Act, which received Royal Assent on June 23, 2023, is intended to provide financial security to working-age persons with disabilities. Neither eligibility criteria nor benefit amounts have been announced; however, consultations are ongoing.
- A series of investment tax credits relating to clean economies were announced in the fall of 2022 and spring of 2023. The government is currently conducting a consultation on the design and implementation of these initiatives.
05/01/2023
Tax Tips & Traps 141, 2023 2nd Quarter
Tax Tidbits
Some quick points to consider…
- New federal rules have been proposed that would prohibit arrangements designed to restrict competition in the labour markets. These include, for example, wage-fixing arrangements intended to fix, maintain, decrease or control salaries, wages or terms and conditions of employment.
- Financial institutions began offering tax-free first home savings accounts in April. The plans are a valuable tool for first-time home buyers as contributions (up to $8,000/year and $40,000 over a lifetime) are deductible, while eligible withdrawals (including growth in the account) are not taxable.
- It is possible to borrow funds from your RRSP for various purposes, such as using the home buyers plan to assist in buying your first home and the lifelong learning plan to fund education and training.
01/31/2023
Tax Tips & Traps 141, 2023 1st Quarter
Tax Tidbits
Some quick points to consider…
- For 2023, the maximum amount that may be deducted for non-taxable allowances paid to an employee using a personal vehicle for business purposes has increased by 7₵ to 68₵/km for the first 5,000 kms driven and to 62₵ for each additional km. For Yukon, the Northwest Territories and Nunavut, the tax-exempt allowance will continue to be 4₵/km higher.
- Rapid inflation has resulted in a significant increase of 6.3% to personal income tax and benefit amounts for 2023. For example, the income level at which OAS repayments commence is now $86,912 (from $81,761), the capital gains exemption for the sale of certain small businesses is now $971,190 (from $913,630), and the annual TFSA contribution limit has increased to $6,500 (from $6,000).
- Legislation that requires more trusts to file trust returns and more information to be disclosed has been enacted. The commencement date was recently deferred by a year to apply to fiscal years ending on or after December 31, 2023. These filing requirements include bare trust arrangements, such as in-trust bank accounts that a parent or grandparent may have with their child or grandchild, unless a specific exception applies.
12/08/2022
Tax Tips & Traps 140, 2022 - Year End - Special Edition.v2
Year-end Tax Planning
December 31, 2022 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation.
10/01/2022
Business Matters Newsletter Volume 36 Issue 5
An economist explains: What to know about a recession
David-Alexandre Brassard, CPA Canada’s chief economist, breaks down the definition of a recession and how it may affect the Canadian economy.
A recession is often talked about, but not always understood. “You can have a technical recession and barely feel anything,” says David-Alexandre Brassard, chief economist, CPA Canada. “You feel a lot more with high inflation.”
09/20/2022
Small Business Accounting - GST
We can help you assess your options, file your GST returns for you or teach you how to file your GST returns yourself, and give you information on when your GST returns are due and how to pay for your GST balance owing, if applicable.
If you need/want to register for GST, we assist our clients with process and/or register for them, and/or you can call CRA to complete your registration.
09/01/2022
Tax Tips & Traps Issue No 139
Tax Tidbits
Some quick points to consider...
- On June 19, 2022, individuals suffering from Type 1 diabetes became automatically entilited to the disability tax credit. This change is retoactive to 2021.
- The Tax Gap, which measures the difference between what is actually collected and the taxes that would be paid if all obligations were fully met, is between $18.1 billion and $23.4 billion.
- On June 23, 2022, legislation was passed which would allow the full and immediate expensing of many capital assets purchased on or after April 19, 2021.
- CRA is currently reviewing how and when crypto asset holdings need to be disclosed on form T1135
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