Personal Investor: 2019 small business tax break has strings attached
This year, small businesses in Canada will get a reduced tax rate on the first $500,000 earned from 10 percent to 9 percent. However, if businesses hold over $50,000 in passive income, the tax rate will change based on the excess amount. It’s estimated small businesses with an annual income of $107,000 will save about […]
Read MoreTime to do some active planning to beat the passive income tax changes
Small businesses who earned over $50,000 in passive income in the past year may no longer qualify for the small business deduction (SBD). Some business owners will be affected, but all should take note of the changes. One way to prevent the loss of this deduction if your “adjusted aggregate investment income” (AAII) is close […]
Read MorePersonal Investor: Boost your RRSP contribution with your refund
If you are looking for ways to increase your retirement savings, consider investing your tax refund early. If you add your refund before the March 1st cut-off, you will generate further tax savings provided the principal is paid back within a few months. This can be done by borrowing the money for a couple of […]
Read MoreNew refundable dividend tax on hand (RDTOH) rules for CCPCs
For taxation years beginning after December 31, 2018, all Canadian controlled private corporations (CCPCs) earning investment income must consider a new set of complex rules relating to their refundable dividend tax on hand (RDTOH) balances. These rules could increase the tax costs to individuals when distributing corporate funds from their private corporations. Taxpayers will need […]
Read MoreYour personal business better be real if you are using it to claim expenses
Canadian taxpayers who claim business expenses need to take care to ensure they’re valid. As a recent case involving an Ontario resident demonstrates, if the business is sketchy (aka not a valid commercial business), the Canadian Revenue Agency will pursue legal action against such activities, and win. In this case, a man ran an unincorporated […]
Read MoreAmericans living in Canada: Be aware that the IRS is watching you
America requires its citizens to pay taxes even when those citizens being taxed are not living inside the borders of the United States of America. This can sometimes come as a surprise to some who move abroad or out of the country to Canada, but the Internal Revenue Service (IRS) is still keeping track of […]
Read MoreAs small business appetite to borrow grows, banks step up with speedy loan approval platforms
Small businesses in Canada looking for business loans are finding it easier to secure financing these days. Lenders have made the process so easy that businesses looking to borrow can be approved the same day as they apply. Use of technologies that determine what’s important to secure loans have made the application process more streamlined. […]
Read MoreFour tax tools to boost investment returns
Taxes are usually the bane of investors, because they nibble away at investment earnings. However, there are several tax tools that could safeguard or even plump up your investment dollars. For example, using a tax-free savings account, or a registered retirement savings plan, allows investors to grow their dollars in a tax-free way, using any […]
Read MorePayback Time: As contribution room grows, the TFSA is the gift that keeps on giving
Investors who enjoy the benefits of a TFSA, especially income created from tax free dividends, can soon get more out of their accounts. The amount that can be contributed will go up by $6,000 in the next year. Those planning for retirement should consider also maintaining a RRSP account with a fully contributed TFSA. Taking […]
Read MoreBetter data and approaches help the Canada Revenue Agency identify Canadians trying to hide …
Thanks to new approaches, new tools, and better data, Canada can better identify and take action against Canadians who evade taxes and use aggressive tax avoidance. With the introduction of the Common Reporting standards in 2017, the CRA now has access to greater information on Canadian’s overseas financial accounts. There are more than 100 jurisdictions […]
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