April 14, 2021

Tax Deadline April 30th

The Tax deadline for T1s is April 30th. As of today, April 14th, no extension has been offered by the CRA. Ottawa Tax offers an online Portal for safe document transmission if needed.
April 4, 2021

2020 Tax Deadline

The 2020 Tax deadline is approaching on April 30, 2021. Make sure, you do your taxes properly with CERB income and other government (CRB, CESB, CRSB,CRCB) supports. Penalties ~5% and interest may apply if you file and pay late.
January 13, 2021

Taxation of Government Support

This is a short reminder that government support payments are often taxable. Some of the payments send out had no tax deductions, so if you received cash, put some aside for taxes. For the CERB, How much to put aside? As it was at a low-income level, use the lowest rate at 20.5% (federal rate at 15% and provincial 5.05%). So the rule of thumb is put aside 20% of CERB. The CRA-administered CRB, CRSB and CRCB all have 10% withheld at source (they deduct 10% for taxes just like you were an employee).   So, put aside 10% of CRB, […]
February 17, 2018

Executor Duties (5 of 5)

25. Obtain clearance certificates from tax authorities. 26. Prepare accounts if they are to be passed by beneficiaries / courts 27. Determine if other duties / taxes are payable. 28. Follow instructions of will, send releases to beneficiaries for signature. 29. After estate settled, make payments to beneficiaries. Make income tax advisements, if any. 30. Close Estate bank account.
February 11, 2018

Executor Duties (4 of 5)

  19. Satisfy specific legacies through sales, auction, etc, of assets 20.Financial: Valuation of assets as basis for the following: probate fee, deemed disposition of capital properties, source of funds for taxable income, cash flow needs, accounting records (if accounting passed), executor’s compensation. 21. Set aside funds or estimated debts, taxes (including capital gains taxes) and executor’s compensation. 22. Arrange for payments of other debts, legacies, etc. These may wait for estate liquidation. 23. Income tax: prepare and file final returns to date of death. Use prior returns as templates. File any missing years. Consider special returns for year of […]
January 21, 2018

Executor Duties (2 of 5)

  7. Have a preliminary discussion with a lawyer; does the will require probate 8.Determine whether an accountant is required. 9.Estimate immediate cash requirements: specific legacies, family living needs, funeral expenses. In general, there should be no disbursements or payouts to beneficiaries until the estate is settled, but there are special expenditures such as the needs of surviving family members. 10. Attend reading of the will by family members. 11. Obtain a list of assets and liabilities. Keep a list of income. 12. Review contents of safety deposit box.  
January 11, 2018

Executor Duties (1 of 5)

There are many possible duties of an Executor. For example, advertising for creditors on a website such as www.securednotice.com. The following is the first part of a list of possible Executor Duties. 1. Make necessary funeral arrangements including payment. It is unlikely that funeral expenses are tax-deductible. 2. Advertise for creditors. Use www.securednotice.com to replace or supplement newspaper ads. 3.Change mailing address, cancel subscriptions, credit cards, disconnect utilities. Pay bills, credit cards, mortgage, etc. 4.Locate and examine last will and testament. 5.Determine names, addresses, phone numbers, birth dates, and government ID numbers of beneficiaries / next of kin. Notify them. […]
December 12, 2017

Year-End Tax Planning

Tax planning for year-end may save you money. Recognize capital losses by selling stock in companies whose stock price has decreased.  A bad stock pick can be sold, and the capital loss reported. It can offset any capital gains. The loss may be carried back three years (i.e. used to reduce taxes on capital gains in those years) or carried forward for twenty. While capital gains are taxed on only 50% of the gain, this capital loss ‘tax-loss selling’ helps even more. Remember the settlement date is the official sale for tax purposes, so initiate your sale by close Dec27. […]
February 23, 2017

Big Changes for Small Business (Part 4 of 4)

On December 15th, 2016, Royal Assent was given to C-29, a budget implementation bill. C-29 means big changes for companies using the Small Business Deduction. Previously, I discussed the Small Business Deduction, who uses it, and what C-29 changed. Here,  I will briefly discuss the effects on small businesses. As always, consult a tax accountant to review your situation and for tax planning.   It used to be the biggest issue was Association: if two companies had 25% or more ownership in common, they were Associated, and had to share the $500,000 Small Business Deduction. Now, Specified Corporate Income goes […]
February 20, 2017

Big Changes for Small Business (Part 3 of 4)

As of December 2016, Bill C-29 is poised to make major changes to Small Business. In previous blogs, I discussed what the Small Business Deduction is, and what companies can use the Small Business Deduction. In this blog I’ll review the changes, and in the next blog I’ll discuss C-29’s impact. As always, talk to a tax accountant to review your particular situation and to get involved in tax planning. There is a new definition of Specified Corporate Income (new Section 125(7) of the Act). If two companies held by related owners do business with each other, that income won’t […]