Our company goal is to take your business to the next level. Hand us all your paperwork in a file/folder regularly. We can pick your file from your office, or you can send it to us by mail or email. We will process your information in our system and send you the bookkeeping records, up-to-date reports, completed GST/HST, payroll and WSIB government filing returns.
Corporate Tax Returns (T2):
Corporate taxes are a huge aspect of our business. We deal with many corporate accounts, day in and day out, and so we know about the corporate tax system. Corporate taxes require the tax preparer to properly understand the corporate structure as well as its purpose. After we have an initial meeting with you, we understand what your end goal is and we take your future tax planning into consideration, we take over from there. We understand and specialize in corporate taxes.
Our corporate tax return package is made specifically for your corporation in mind. We look at which of our services would suit your situation best. We customize our business model for you. Let’s quickly take a look at some of the services we provide.
We provide comprehensive support to ensure that your firm is in compliance with CRA. Whether you have non-filed tax returns or have been audited by the CRA, you can count on us help you get on the right track.
Personal Tax Returns (T1)
Self-employed Income Tax
If you work as self-employed, income is reported on your personal income tax return (T1). Self-employed individuals generally use a December 31 year-end. The return is due on June 15th.
You can deduct all expenses incurred in the conduct of your business. We will make sure you claim all allowable expenses to minimize your taxes, and help you claim tricky expenses properly in order to avoid tax audits. . We will help you claim the tricky expenses, including but not limited to automobile, office, meals and entertainment expenses, properly to avoid a tax audit. We also provide advice on other issues such as GST, employing family members, and payroll tax submissions, etc.
Employers must complete Form T2200 – Declaration of Conditions of Employment to legitimize these deductions.
Employment expenses for salaried employees include travel expenses, supplies, allowable motor vehicle expenses, etc. Employment expense may be entitled to deduct an amount paid for living accommodation. Additional deductions such as advertising and promotion are available for commission-based employees. Employees claiming expenses on their tax returns may be entitled to claim the GST/HST paid.
Rental Income Tax
If you have rental properties, you are required to report your rental income to Canada Revenue Agency on your personal tax return in a specific manner. If you rent part of your house, the expenses have to be prorated. When you sell your property, you may have to report a capital gain.
Tax on Investment
There are three types of investments: interest income, capital gains, and dividends. Each type of investment varies in taxation rates. Interest income is 100% taxable. Capital gains are the profit realized on the sale of an asset such as stocks and mutual funds. Capital gains are 50% taxable. Dividends are distributions of a company’s profits that are earned by investing in stocks or mutual funds. It is based on a mechanism of gross up and dividend credit. Dividends received from foreign companies do not qualify for dividend tax credit and are 100% taxable the same as interest income.
Generally speaking, capital gains are the most tax efficient and followed by dividends. Interest income is the least tax efficient investment income.
Capital losses can be used to against capital gains. Unused capital losses in current year can be carried forward indefinitely and carried back to the previous three years to offset capital gains in those years.
You may be able to deduct certain expenses related to your investments. These expenses may include interest paid on money borrowed to invest, investment counsel fees, and safety deposit box charges etc.
Family Tax Returns
If your spouse cannot benefit from certain tax credits, for example, credits on tuition fees, pension or disability, age and spouse credits, those credits can be transferred to you.
If you are a single parent and you have dependents living with you, you may be entitled to an amount for an eligible dependent credit.
Claim all donations on one spouse’s tax return. You may be able to claim a first time donor super credit. Claim all medical expenses on the return of the spouse with lower income if the lower income spouse can use the credit.
You may be entitled to claim child-care expenses incurred for any child 16 or under. Claim children’s fitness credit and art credit. If your child is a student and does not have enough income to claim all of the tuition, education and textbook credits, up to $5000 of those amounts can be transferred to a parent or grandparent. A child’s unused disability credit can be transferred to a supporting parent or other members.
Make sure you file returns for your children if they earned any income even if they do not owe any taxes. This will create RRSP contribution room, which will save them tax later when they are contributing to an RRSP.
If you or your spouse receives eligible pension income, splitting pension income between you and your spouse may reduce overall taxes.
If you provide care in your home for an elderly or infirm relative, you may be eligible to claim the caregiver’s tax credit, but you are required to provide the dependent’s income.
We’re open Six days a week, so feel free to drop by, call us, or book an appointment. Visit us at Monday to Friday: 9 am to 6 pm Saturday 9 am to 1 pm.
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