Use Capital Losses

You can use your 2018 capital losses to reduce your current year’s income taxes by applying such losses against your 2018 capital gains. You must, however, be careful of the superficial loss rules preventing you from claiming a capital loss on an identical asset that you reacquired 30 days before or after the sale date.

If capital Read More

Please follow and like us:
By |December 5th, 2018|SmallBiz Builder|

Contribute to your RRSP

The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP).

Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18% of 2017 earned income to a maximum of $26,230. Earned income is Read More

Please follow and like us:
By |December 3rd, 2018|SmallBiz Builder, Tax Tips|

Wills and the Executor

Wills and The Executor
A will specifies your instructions as to how your assets will be distributed on your death. In the will, you name an executor to act as your personal representative and to deal with all the tax, investment, administrative, and other duties involved in distributing and overseeing your assets as per your instructions. Some people feel honored Read More

Please follow and like us:
By |November 2nd, 2018|SmallBiz Builder|

Lifetime Capital Gains Exemption (LCGE)

On January 1st, 2018, the LCGE increased to $848,252 of capital gains realized by an individual on qualified small business corporation shares. The LCGE has been indexed to inflation for the years following 2014. The new limits apply to any taxpayer who has claimed the LCGE previously.

For dispositions of qualified farm or fishing property, the Read More

Please follow and like us:
By |October 3rd, 2018|SmallBiz Builder|

Per Diem Meal Allowance

In a recent Technical Interpretation, CRA noted that an employer-provided meal allowance will not be taxable where the following conditions are met:

It must be a reasonable amount;
The allowance is received to cover expenses while travelling away from the metropolitan area or the municipality where the employer’s establishment is located, at which the employee Read More

Please follow and like us:
By |September 3rd, 2018|SmallBiz Builder|

Common Deductions and Tax Credits for Students

The most common deductions that apply to students are moving expenses and child care expenses.
Moving Expenses
You can deduct moving expenses if you move to attend courses as a full-time student or if you moved to start a new job, including summer employment, or to start a business. Your new home must be at least 40 Read More

Please follow and like us:
By |August 6th, 2018|SmallBiz Builder, Tax Tips|

Owner-Managed Business – Creditor Proofing

Every business owner should be concerned about creditor proofing his assets. Consider these suggestions:

1. Transfer assets out of the company 

Place capital assets in a separate holding corporation so that subsequent legal claims that arise in the operating company do not affect these assets.
Lease the assets in the holding corporation back to the operating Read More

Please follow and like us:
By |July 9th, 2018|Small Business Tips, SmallBiz Builder|

Corporate Directors Liability

If a corporation (including a for profit or non-profit corporation) fails to deduct, withhold, remit or pay amounts held in trust for the Receiver General for Canada (CPP, EI and GST/HST), the directors of the corporation at the time may be held personally liable along with the corporation to pay the amount due. This amount Read More

Please follow and like us:
By |July 4th, 2018|SmallBiz Builder|

Business Investment Loss – Denied

In a Tax Court of Canada case, a mother had guaranteed the business loans for her son’s corporation. Unfortunately, the corporation failed and subsequently the mother paid off the loans. The mother claimed business investment losses for the amounts repaid.
Her only motivation for the guarantee was to assist her son’s business. She did not charge Read More

Please follow and like us:
By |July 2nd, 2018|SmallBiz Builder|

Employment Insurance Benefits for Self-Employed People

Self-employed Canadians are able to voluntarily access Employment Insurance (EI) special benefits. There are four types of EI special benefits:

Maternity benefits (15 weeks maximum) available to parents of a new born or newly adopted child. It covers the periods surrounding birth. A claim can be submitted up to 8 weeks before the expected date of birth, and Read More

Please follow and like us:
By |June 9th, 2018|SmallBiz Builder, Tax Tips|