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Foreign Property Reporting Requirements

For all individuals, corporations, trusts and partnerships that own a portfolio (of specified foreign properties) with a cost of $100,000 CAD or more at anytime during the year, a T1135 form needs to be filed.

Common types of specified foreign property

Common types of specified foreign property include: cash deposited or held outside of Canada, shares of foreign corporations, and real property held outside of Canada.…

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Tax Update – 2016

The new Liberal government has proposed to implement some tax changes effective 2016. Generally, these changes are advantageous to the middle class but have reduced or removed benefits for those that are in wealthier groups. Below are the proposed changes.

Personal tax rates – Effective January 1, 2016, personal marginal tax rates have changed for two tax brackets. Individuals with a taxable income between $45,282 and…

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Salary or Dividends?

As an owner of an incorporated company, there are several decisions that need to be made which can impact your financial situation in the short and long term. One of the more common questions asked is how to draw out money from the corporation; salary, dividends or some combination? There are many factors to consider and there is no one answer that fits everyone.

Salary is an expense to the corporation and income to t…

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Tax Changes affecting families for 2014 and beyond

This is a summary of some changes that may affect you:

Family Tax Cut – There is a new credit allowing couples with children younger than 18 to income split
Child Care Expense Deduction – Maximum dollar limit increase of $1,000
Universal Child Care Benefit – Increasing by $60 dollars per month and extending to children up to 17
Fitness Tax Credit – Dollar limit doubling to $1,000 and credit will become refundable

The new…

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Purchasing a Dental Practice

After practicing as a dentist associate for a number of years,many dentists begin thinking of purchasing their own dental practice. The search often begins by contacting the companies that appraise dental practices. There are at least five active companies that appraise dental practices. Each company has their own methodologies on valuating the practice, which consists of valuating the hard assets (dental equipment,…

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Incorporation and its Benefits

- Opportunity to defer tax on income retained in the Corporation. Corporation pays tax at 15.5% on income up to $500,000. Individual’s marginal rate of tax increases from 21% at the lowest bracket, to 46% in the highest tax bracket.
- Opportunity to split income with family members. Salary paid to family members must be reasonable in amount, reasonableness based on job description and what would be paid to an unrelat…

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Tax Motivated Savings Plans

Under the current tax legislation, Canadians have available to them several plans, each of which has different tax implications. All of the plans have one thing in common, they give the opportunity for your savings to grow on a tax free basis, in one case without even taxing this growth. The following is a brief outline of each.

There is often the question, should I save in my RRSP or my TFSA. The answer will depend o…

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The Canada Pension Plan – The New Regime

Effective January 1, 2012, the rules as they relate to receiving and paying CPP have changed. These rules may affect your plans in when to start taking Canada Pension payments and affect the treatment of employees between the age of 60 and 70.

Under the old rules, an individual could elect to start taking CPP early, any time after reaching the age of 60. If one decided to take CPP early, their monthly benefit was redu…

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All Employers Please Read This...

Monday morning you arrive at work and notice one of your employees is under stress. She has indicated to you that she is fearful about the possibility of domestic violence at home. As an employer you have a duty to act, and many things need to be done as a result of the new legislation.

Effective June 15, 2010, a new law known as Ontario Bill 168 came into force, and under new legislation, as an employer you have obli…

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Dividends may be more attractive than RRSPs

As we enter a new year, it is time to review your annual cash flow needs. This will help determine the amount of funds that need to be withdrawn from your business. In past years, a salary would be paid to maximize RRSP contributions and any additional amounts were withdrawn as dividends. A salary allows for maximum Canada Pension Plan contributions. A salary of $124,722 will allow for a maximum RRSP contribution of…

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