Do I Get Taxed on Rental Income?

Investing in a new property can be very exciting; there are many ways you can use a house to generate money. You might do renovations on the house and sell it in a few years; others purchase properties as bed and breakfasts. A popular way of using property for income is by renting it out to tenants; but does collecting … Read More

What is the Definition of Pensionable Salary?

There are a wide variety of social security schemes which help the most vulnerable members of our society. Employment Insurance (EI) helps those who have lost work through no fault of their own, and Old Age Security (OAS) is there for those who are over the age of 65. The Canada Pension Plan (CPP) is somewhere between a social security … Read More

What are Tax Deductible Business Expenses?

Running your own business is a thrilling, ambitious and complex proposition. The joy of being your own boss and contributing something substantial to society, be it a service or good, is something amazing, and North America was built on the back of the entrepreneurial spirit. The age old adage that you have to spend money to make money is true, … Read More

CRA Audit – Can I Be Selected?

We’re oftentimes asked how the CRA chooses taxpayers subject to audit. With experience we know specific taxpayers, specific claims and specific industries tend to trigger audits. With this in mind, we’ll list here what we’ve seen and how we think the Canada Revenue Agency chooses specific businesses and individuals for audit. Reasons that are specific to individuals We see more … Read More

How Long Should You Keep Tax Records?

Filing your taxes comes with its own set of stressors, but what do you do with the paperwork when you’re finished? Most business owners already know that they should hold onto their tax returns and supporting documents for a set period of time. However, very few people know just how long to keep that paperwork available. They also aren’t sure … Read More

Personal Tax Credit Changes for 2017

There was a lot on the chopping block this year. Let’s find out if your favorite tax credit made the cut for 2017. New Tax Credits The Canada Caregiver Amount is new for 2017. It replaces all these tax credits from prior years: • The Family Caregiver Amount • The Caregiver Amount or • The Amount for Infirm Dependents aged … Read More

Top 3 Tax Surprises for Sole Proprietors

We meet many small business owners for the first time during tax season.  It isn’t unusual for them to have incomplete knowledge of their income tax responsibilities in regards to their business.   These are the top three things that surprise them the most to learn. 1.  CPP Contributions When you are self-employed, CPP contributions are calculated on your tax return. … Read More