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How to Save 2016 Income Tax

 

We are proud to present our updated annual 2016 TAX RETURN ORGANIZER™, your indispensable reference guide to help you save money by reducing the amount you pay in income taxes. Click here to read and print it.

TAX TIP       Remember that, when you pay CPP and EI premiums on the salary of your child’s nanny, they are eligible to be deducted as child care expenses provided the salary or wage paid to your nanny meets the criteria in Section 63. Child care expenses are amounts incurred for the purpose of providing child care services for an eligible child. Eligible expenses can include babysitting, nursery day care or camp or boarding school. To ensure you maximize […]

By |Categories: Newsletters, Tax & Financial Tips|

Cash Savings Strategies

 

The route to a secure financial future can be difficult to navigate. At HALPERN Chartered Professional Accounting Firm we understand this. 

We work with clients on an individual basis, taking the time to identify the best solutions for a profitable financial outcome. For over 30 years we’ve been helping businesses and individuals save money and prevent costly mistakes. Our full-service CPA firm combines the technical knowledge of Chartered Professional Accountant with entrepreneurial mindset of Strategic Business Advisor.

Business owners and individuals complain but often do nothing to improve their financial situation. Face this New Year with confidence using our customized strategy and knowing that we […]

By |Categories: Newsletters, Tax & Financial Tips|

Year-End Tax Planning Tips

 

Take advantage of 2016 year-end tax saving opportunities, some which are only available for the last time before December 31. Ideally, tax planning should be a year-round affair since many tax strategies require foresight to be effective. The good news: there are still opportunities to reduce your 2016 tax liability, particularly if you act before the end of the calendar year.

Rapidly changing tax laws mean periodic business and personal tax planning and financial advice is absolutely essential for all business owners, individuals, corporate executives and professionals.

Don’t leave your tax planning to chance!   We will show you how a personal customized […]

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Your Financial Plan

 

As we draw closer to 2016 Financial Planning Week, which takes place the week of November 20-26, 2016, we want to remind you how you can benefit from financial planning.  Exercising regularly, eating a balanced diet, and managing stress effectively can help proactively maintain a positive mind and healthy body. For many Canadians, though, doing so on a daily basis is a big challenge.  The link between stress and health has long intrigued workplace health providers, employers, doctors and scientists. Stress, which is a fact of life, can be difficult to control and can have serious physical and mental health […]

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Selling Your House or Condominium

 

For the year in which you sell your home, technically speaking the law requires you to file Form T2091 (Designation of a Property as a Principal Residence) with your tax return in order to designate the years that are being used in the principal residence calculation. However, Canada Revenue Agency (CRA) has stated that you do not need to complete this form unless there is a taxable capital gain after using the principal residence exemption.

When a principal residence is sold, the gain is not taxable if it has been your principal residence for the whole time it has been owned. This is […]

By |Categories: Newsletters, Tax & Financial Tips|

Payments to Family Members

 

Any business can generally deduct reasonable salaries paid to children and family members for services rendered to it.

Such payments are normally made via cheque or bank transfer but what about non-cheque, non-cash, in kind payments to family members?

There is a Tax Court of Canada case which deals with the deductibility of non-cheque paid amounts (“in kind”) paid to family members.The taxpayer testified that he paid $7,000 to each of his 11 and 13 year old children, based on a compensation rate of $10 per hour.  He said the children were paid for photocopying, stuffing and stamping envelopes for various mailings to thousands […]

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Personal Holding Companies

 

Personal holding corporations are companies incorporated to hold the investments of an individual shareholder and may provide a profitable vehicle to split income between family members.  For example, if you or your spouse each have wholly-owned corporations, and your corporation has retained earnings (accumulated profits) from a business which are loaned to your spouse’s corporation interest free, investment income on the loaned funds can be paid and taxed in your spouse’s hands.

TAX TIP       One may successfully argue that such a loan described above will not be subject to Canada Revenue Agency’s special Attribution Rules (rules preventing certain transfers of […]

By |Categories: Newsletters, Tax & Financial Tips|

Second Chance Tax Amnesty

 

Believe it or not, you may be eligible to have a second chance to correct your tax affairs. Second chances don’t often happen in life. But if you ever made a tax mistake like leaving out income or claiming ineligible expenses, Canada Revenue Agency (CRA) offers you a second chance.

No-Name Voluntary Disclosure (VD)

Our CPA firm offers this unique professional service called a “no-name voluntary disclosure.”  We can make a “no-name” voluntary disclosure (VD) on your behalf to CRA to ensure your complete anonymity until they formally indicate acceptance of your no-name voluntary disclosure (VD).

TAX TIP      Your VD must be […]

By |Categories: Newsletters, Tax & Financial Tips|

Your Compensation

 

If you are a business owner, what level of compensation should you take out of your company and in what form? This is a major issue business owners face each year.

Most business owners do not take the time to work out the best tax and business planning possible. It is crucial for you to plan and have a good idea about what factors should be taken into account because there are potential problems and pitfalls to consider. The best way to ensure your success is to seek professional advice.  

TAX TIP     An obvious factor is to calculate what you need for […]

By |Categories: Newsletters, Tax & Financial Tips|

Your Home Expenses

 

Home Office Expenses

If you work in your home, you may be able to deduct part of your home expenses which would save you income tax. But, like everything else when it comes to income tax, there are special rules you must follow and these tax rules differ depending on whether you are self-employed or an employee.

If You are Self-Employed

If you are self-employed, home office expenses must relate to work space that is either your principal place of business or used exclusively for the purpose of earning income from your business. In order for the second criterion to apply, the space […]

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