Tips & Advice

We are pleased to provide a variety of resources on accounting, taxation and other related subjects that we hope will be helpful to both individuals and businesses. Read through our blog posts below or browse through our Quick Tools resource menu. Have a question that isn’t answered here? We can help. Simply contact us by email or give us a call at 807-276-6272. We would be happy to meet with you for a free, no-obligation consultation.

Disclaimer:
The content provided in this blog is for general informational purposes only and is not intended as professional accounting, tax, or financial advice. While efforts are made to ensure the accuracy and timeliness of the content, errors or omissions may occur. The content does not constitute a client-advisor relationship. Readers should consult with a Chartered Professional Accountants or other financial professional for advice tailored to their specific needs. We are not liable for any actions one might take based on the information provided in this blog.

What Happens When TFSA Holder Dies?

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When a Tax-Free Savings Account (TFSA) holder passes away, the handling of the account depends on whether the account has a named successor holder or a designated beneficiary. Here’s a breakdown of the main scenarios:

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Tracking Loans to or From Shareholders

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When advances or loans are made to shareholders this should be recorded in a general ledger account set up for this purpose. If a loan is made for which the interest would be tax deductible for the shareholder, it is important to track this loan separately from other advances or loans.

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Can I Reduce or Avoid the Capital Gains Tax?

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In Canada, capital gains are taxed when you sell an investment or property for more than its purchase price. However, there are several strategies to reduce or avoid capital gains tax. Here’s how you can manage it:

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Should I be a Personal Services Business (PSB)?

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In Canada, a Personal Services Business (PSB) is a type of business that the Canada Revenue Agency (CRA) designates under certain conditions. The rules governing PSBs are stringent, and the tax treatment of a PSB is less favorable compared to other types of corporations. Here’s an overview of what constitutes a PSB and its implications:

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Is Incorporating a Good Idea for a Sole Proprietor?

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Deciding whether a sole proprietor should incorporate in Canada depends on various factors, including tax considerations, liability protection, business growth plans, and administrative responsibilities. Here are some key points to help make that decision:

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Selling Goods Online Could be Taxable Income

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In Canada, income from selling goods on eBay, or similar platforms such as Kijiji, Etsy, or Amazon, can be taxable, depending on the nature and frequency of the sales. Here are the key factors to consider:

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Tax Installments for Canadians in 2024

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Tax instalments are payments you make throughout the year to cover the taxes you normally pay in one lump sum on April 30th of the following year. You pay these instalments during the year while you are earning the income, similar to how an employer deducts tax directly from each pay period.

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What Business Entertainment Expenses Are Deductible

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The Canada Revenue Agency (CRA) allows businesses to deduct certain entertainment expenses from their taxable income. However, there are specific rules and limitations on what can be deducted. Here is an overview:

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Bookkeeper vs. Accountant - What Do I Need?

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Certified Professional Bookkeepers (CPB), bookkeepers in general, and accountants may overlap in their tasks, yet they possess distinct skill sets. Here's what you need to know:

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Are There Tax Benefits for Couples in Canada?

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Are There Tax Benefits for Couples in Canada?

Curious about the tax advantages that come with getting married or living in a common law relationship? In Canada, there are indeed significant tax perks for couples. The following will begin to outline them.

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Are There Tax Benefits for Couples in Canada?

Are There Tax Benefits for Couples in Canada?

Curious about the tax advantages that come with getting married or living in a common law relationship? In Canada, there are indeed significant tax perks for couples. The following will begin to outline them.

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Filing Your Personal Tax Return Benefits - Part 3

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Filing your personal Canadian income tax return can also help you qualify for various government benefits. Here are some examples:

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Filing Your Personal Tax Return Benefits - Part 2

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here are five more benefits of filing your personal Canadian income tax return:

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Filing Your Personal Tax Return Benefits - Part 1

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Filing your personal Canadian income tax return offers several benefits, including:

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Personal Income Tax Return Deadline is April 30th

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The deadline for filing 2023 tax returns and payments is Tuesday, April 30, 2024. Typically, personal income tax returns, excluding those with self-employment income, are due by April 30th, along with any outstanding payments. Late filings or payments may incur penalties and interest charges.

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How Students Can Maximize Tax Refunds

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How to maximize tax refunds as a student in Canada

Maximizing your tax refunds as a student in Canada involves understanding the tax credits and deductions available to you and ensuring you claim them correctly on your tax return. Here are some tips to help you maximize your tax refunds:

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How Can I Minimize Taxes of a Deceased Taxpayer?

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Minimizing taxes for a deceased taxpayer's estate in Canada involves careful planning and following specific strategies. The goal is to reduce the tax liability of the estate and maximize the assets passed on to beneficiaries. Here are some steps to consider:

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When are Gifts from an Employer a Taxable Benefit?

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In Canada, gifts from an employer can be considered taxable benefits in certain circumstances. The taxation of employer-provided gifts depends on several factors, including the nature and value of the gift, the frequency of such gifts, and the specific rules set by the Canada Revenue Agency (CRA).

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Claim the Disability Tax Credit (DTC) in Canada

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As Canadians advance in age, we are pleased to offer a 3 part series on the Disability Tax Credit (DTC) in Canada.

To claim the Disability Tax Credit (DTC) in Canada, you must meet the eligibility criteria and complete the necessary steps. Here's a general overview of the process:

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Retroactive Disability Tax Credit Claims

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If you believe that you were eligible for the Disability Tax Credit (DTC) in previous years but did not claim it, you may be able to make a retroactive claim. Retroactive claims allow you to request adjustments to previous tax returns and potentially receive refunds for the missed credits.

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Low-Income Individuals and The DTC

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For low-income individuals in Canada, claiming the Disability Tax Credit (DTC) can provide additional financial benefits through refundable tax credits and other programs. Here are some key points to consider:

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How to Choose a Personal Finance App and Why You Should

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Guest post by Amos Faulkner

According to financial experts, only about one-third of Americans have a written financial plan. One of the most commonly cited reasons for failing to plan is that it is too complicated. Using a personal finance app can help uncomplicate the process of financial planning.

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RRSP Basics

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With February here already, we are now well into the annual RRSP season. This year, Canadians will have until March 3 to contribute to an RRSP and still qualify for a tax deduction in the 2013 tax year.

What is an RRSP?

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The Importance of reporting ALL income from information slips

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Many people assume that if they fail to include an information slip with their income tax return, the Canada Revenue Agency ("CRA") will simply adjust the return to report the income and adjust the income tax accordingly.This is half correct!The other half of the equation is a little known penalty the CRA imposes for repeated failure to report income. This penalty arises when an income slip is not added in your tax return two times in a three year period.

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Foreign Asset Reporting and the Extreme Costs of Non-Compliance

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Several years ago form T 1135 was added to our tax returns for individuals, corporations, partnerships and trusts. It is a simple form that has been often overlooked and non-compliance has been high. More than likely this has been because the form does not enter into the calculation of income tax payable.

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Dividend or Salary? What's the Best Way to be Paid?

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Paying yourself as a small business owner is an important decision. Determining how you do it will be very important concerning finances and taxes.

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What Documents Do I Need for Tax Season?

What Documents Do I Need for Tax Season?

What documentation should you include with your return and which records should you maintain? If filing electronically, retain all receipts and documents as the CRA may request them later. For paper filings, the information provided will specify necessary attachments like certificates, forms, schedules, or receipts. It's advisable to retain all receipts and documents for at least six years post-filing to accommodate potential CRA reviews.

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What to use... TFSA or RRSP For Savings?

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The choice between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) depends on various factors, including your financial goals, current income, and retirement plans. Here are some key considerations for both:

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Upcoming Tax Changes in Canada for 2024

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We have compiled a list of Tax Changes and adjustments that are anticipated to affect most Canadians in 2024.

The details here offer estimates for elevated payroll taxes, mandatory contributions to the Canada Pension Plan and Employment Insurance. It also covers increases in carbon taxes plus the effect of the possible Digital Services Tax.

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Canadian Year-End Income Tax Preparations

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As tax laws and regulations change, it's crucial to consult with a tax professional or check the latest resources for the most up-to-date information.

Here are some common steps individuals may take at the end of the tax year:

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Is Gifting a Capital Property a Disposition?

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In Canada, gifting a capital property is considered a disposition for tax purposes. When you gift a capital property to someone, it is treated as if you have sold the property at its fair market value (FMV) at the time of the gift. This means that you may be subject to capital gains tax on any accrued gains in the property's value up to the date of the gift, even though you didn't receive any cash in return.

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In Canada When Are Gifts or Inheritances Taxable?

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In Canada, gifts and inheritances are generally not taxable to the recipient. However, there are some important nuances and exceptions to consider:

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How a Bookkeeper Works with Your Accountant

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As we spoke about in our last post, as your bookkeeper, we handle the day-to-day financial transactions and record-keeping. Your accountant takes a more analytical and strategic role in interpreting the data, providing financial advice, and ensuring compliance with financial regulations.

We play a distinct, yet interconnected role with your accountant in managing your company's financial affairs. Here's how we typically collaborate to ensure your financial records are accurate, compliant, and optimized.

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Do Bookkeepers and Accountants Take Holidays?

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Once tax season is over, tax preparers, bookkeepers, and accountants head to beach resorts for 6 months of relaxation and resting on their laurels... Well, OK, not really, but here are some common things they do undertake:

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Reduce Taxes with a First Home Savings Account

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First Home Savings Accounts, or FHSAs combine the concept of Tax-Free Savings Accounts and Registered Retirement Savings Plans. For people aged 18 and older, like an RRSP, contributors receive a tax deduction on contributions and TFSA-like tax-free withdrawals when using the savings to buy a home. Further, any investment gains earned in the account are tax-sheltered.

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2023 Tax Saving Ideas to Do Now

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As the 2022 tax year is behind us, it is a good idea to start early and plan for 2023. Here are some suggestions on how you can save money on your Canadian income tax for this year:

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Your Accountant can Help File Your Taxes On Time

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Even though there is a strike affecting the CRA and the public sector workers, you will not avoid penalties if you do not file your taxes by the May 1st deadline. 

Filing your Canadian income tax on time is essential to avoid penalties and interest charges. In this blog post, we will discuss the importance of filing your Canadian income tax on time and the penalties you may be subject to if you are late.

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CRA - Watch for Text and Letter Scams

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The CRA will not send text messages, or instant messages (Facebook Messenger, WhatsApp) to start a conversation with you under any circumstances.  

If you receive a text or instant message purporting to be from the CRA, prompting you to click on a link or requesting information, you can safely delete it.  

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Claiming investment fees on your tax return

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When preparing your taxes, a deduction that is often overlooked is carrying charges and interest expenses. These charges are costs you incur to earn income from an investment, but only expenses for non-registered accounts will qualify.

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The Tax Implications of Shareholder Loans

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Shareholder loans refer to loans made by shareholders of a corporation to the corporation. The tax implications of such loans will vary depending on the jurisdiction, but usually, they are not considered taxable income to the shareholder.

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2022 Tax Season - How to Preparing Your Records

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Through proper planning, simplifying the process of filing your tax returns for 2022 is easily done. By taking the time to prepare your records, you can speed up the process of receiving a refund and reduce the cost of services provided by your accountant or tax preparer to meet the tax filing deadline.  

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Christmas Accounting Tips for Businesses & Individuals

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When thinking about finances, this time of year is one of the most important. People are out in stores or shopping online, and generally, businesses hire more staff. Christmas parties will happen, with presents usually given. In spite of all the hustle and bustle, wise people will consult their accountant so that they're prepared. Here are a couple of quick tips for the holidays.

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Charitable Donations and Income Tax

Winston Churchill once said: “We make a living by what we get, but we make a life by what we give.”  Canadians have a long history of charitable giving, with well over 90% of adults and youth making donations each year.

The Canadian government recognizes and appreciates our culture of giving, and is committed to promoting the giving spirit.  Hence Canada has tax incentives for charitable donations, which have been described as among the most generous incentives in the world.

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