Tuesday, July 24, 2018

Is Your Private Company in Shape for New Tax Rules?

Owners of private companies in Canada may now face more restrictive tax rules. Canada recently enacted changes affecting private corporations, their owners and family members, including a new tax on split income (TOSI) where adult family members are part of income splitting arrangements, and restrictions on the small business deduction (SBD) where a private corporation in a corporate group earns passive investment income. These new tax measures, which were first proposed in July 2017, are now enacted and may present significant challenges for private corporations and their owners. As a result, we recommend that you revisit your tax affairs to ensure they are still effective in light of these changes, if you haven’t already done so.

To read this edition of TaxNewsFlash-Canada, go to: TaxNewsFlash-Canada.

Monday, June 18, 2018

Savings Advice

Nearly one-quarter of retirement income for current retirees comes from, or will come from, company pensions. This is not the case for gen-Xers and subsequent generations. If we can learn anything from current retirees, it is that times have changed.

With reduced employee pension coverage, or none at all, it has put more personal responsibility onto today’s workers to save proactively for their own retirement.

This reinforces the importance of working with a financial planner. A skilled advisor will work with you to build a retirement plan that is unique to you — with whatever you can afford, when you can afford it — to help ensure you are better prepared for the future.

Don't put your retirement on the back burner, talk to us today, and together we can help you build your happy retirement.

Tuesday, May 29, 2018

Maximize your TFSA

Maximize your TFSA

Studies show that only one in five Canadians have maximized their TFSA contributions.

Do you know how much contribution room you have in your TFSA?

  • To see a detailed breakdown of your specific contributions and withdrawals, go to www.canada.ca and log into your registered MyCRA account, or you can call them at 1-800-959-1956
  • You are eligible to open a TFSA the year you turn 18
A TFSA allows you to grow your savings tax-free throughout your lifetime.  A TFSA is also an excellent choice if you have contribution room available and you have any non-registered savings where you currently receive a T5 tax slip.  In this case, we suggest you consider moving any non-registered funds into a TFSA each year, up to your contribution limit (if possible), to avoid paying tax on the money in your open account(s).

We are ready to help guide you towards making the best possible financial choices for your lifestyle. Book an appointment today, and together we can plan how to use your TFSA to your benefit.
Don't have a TFSA account? We can open one for you. Contact us at 905.332.6633 or  info@c2inc.com

Wednesday, April 18, 2018

Tax Time

It is officially tax time, and with the April 30th deadline looming, here are a few tax tips to help you file pain free.

Avoid getting too creative with your 'other deductions'
-  Line 232 otherwise labeled as 'other deductions' is not an invitation from the CRA to list whatever big expenses you've had over the year
- There is a specific list of claims that qualify. Read that list here
- You need receipts for all of the expenses you claim (i.e: medical expenses or donations)
- While you no longer need to mail in your receipts, you do need to hold onto them should the CRA question any of your expense claims

Don't play hide and seek with the CRA
- Make sure the CRA knows where to find you
- If the CRA asks you for more information after you’ve submitted and are unable to reach you, it will deny or modify claims based on the information it has (which could result in a bigger tax bill)

Know what's new for 2017
- Under new legislation, there are old tax breaks that you can no longer claim, as well as, new tax breaks that you may quality to claim

      New tax breaks:

  • Canada caregiver credit – If you care for an infirm family member, things just got a little easier. The Liberals streamlined three previously existing tax breaks into the Canada caregiver credit.
  • Disability tax credit – The government has added nurse practitioners to the list of health professionals who can certify Canadians living with a disability for this tax break.
  • Medical expense tax credit – Fertility treatments can cost thousands of dollars and aren’t often covered under provincial health plans. You may be able to claim some of those costs in your tax return this year. Also, the Liberals have made the change retroactive, so if you’ve paid for things like in vitro fertilization during any of the past 10 years, you can refile your taxes and add that in.
Make sure you have all of your tax slips
-Depending on your employment status there are specific slips that you will need to file your taxes.

  • If you’re an employee, a T4, Statement of Remuneration Paid form, which shows how much your employer paid you. 
  • If you’re retired, a T4A, Statement of Pension, Retirement, Annuity and Other Income, which shows you much you earned in retirement payments. 
  • If you made money from investing or earned interest in a savings account, you’ll need a T5, Statement of Investment Income, which shows items such as dividends, interest from bonds or money you loaned, and much more. 
  • If you received Employment Insurance (EI), a T4E, Statement of Employment Insurance and Other Benefits. 
  • If you received worker’s compensation or social assistance, a T5007, Statement of Benefits.
Know your limit
The CRA will penalize you for over contributing to your RRSP and TFSA
- Be sure to review your notice of assessment, or check your MyCRA account, for your contribution limits

Be sure to claim any foreign income
- If you have any type of foreign income-even though you're a Canadian tax payer you will need to claim it
- You will get a credit from the government, and you will not be taxed twice, but none-the-less it needs to be claimed, or they will come after you