News & Views

I trust that you are staying healthy, staying positive and staying safe.
The past few weeks has been a truly unprecedented situation that is affecting all of us: schools are cancelled, non-essential businesses are closed, everybody is practicing social distancing and working from home.
Well, most of us.
If you are one of the essential workers who are working, thank YOU for everything you are doing.

Canada Emergency Response Benefit (CERB)

I’ve been asked a lots about the Canada Emergency Response Benefit that our government is rolling out. So here is some quick points on that

• You will be able to apply for CERB on Monday April 6th 2020. The benefit is retroactive to March 15th 2020.
• Information on CERB: click here.
• Apply for CERB: click here.
• You will need a “CRA My Account” to apply online.

CRA My Account

To register for “CRA My Account”, if you don’t already have one, you’ll need the following:

• Your Social Insurance Number.
• Your postal code.
• Your last tax return.

If you need register for your “CRA My Account”, I can definitely help you with that.
 

New Tax Filling & Payment Deadlines

Here are the new due dates:

• Tax return deadline: June 1st 2020 for individuals.
• Tax payment deadline: September 1st 2020.
• For my complete list of 2020 Important Dates: click here.

Keep in mind that you should aim to file your taxes before those due date to avoid interruptions of your benefit payments.

I would like to remind you that we do offer tax return preparation, as well as bookkeeping services. Please contact me directly to schedule your virtual appointment and get yours done.

“Dream it. Plan it. Live it.” I’m looking forward to seeing you at our next get together and to serving you for many years to come.

In the meantime, stay healthy, stay positive, stay safe.

Remember to always “Dream It. Plan It. Live It.“
I am here to help you on your journey. Reach out if I can be of any assistance.

***Updates – March 2020***

• NEW Income Tax Filling Deadlines: the 2019 tax return filling date has been extended
  • Individuals: extended to June 1^st 2020.
  • Self-employed individuals and their partners: unchanged June 15^th 2020.
  • Corporations: extended to June 1^st 2020 for corporations that would otherwise have a filling due date between March 18^th 2020 and June 1^st 2020.
  • Trusts: extended to May 1^st 2020 for trusts with a taxation year-end of December 31^st 2019.
  • Charities: extended to December 31^st 2020 for charities with Form T3010 due between March 18^th 2020 and December 31^st 2020..
• NEW Income Tax Payment Deadline: taxpayers will have until September 1^st 2020 to pay any 2019 income tax amounts owed. This includes businesses’ income tax amounts that become owing or due after March 18^th 2020 and before September 1^st 2020.

REMARK: some Notice of Assessments have been sent with the incorrect due date of April 30^th 2020. This date is incorrect. Your payment deadline is September 1^st 2020

As we are in the midst of the RRSP season and the beginning of the income tax return season, I would like to remind you that we do offer bookkeeping & tax return services for individuals and businesses. Please contact me directly to schedule an appointment.

A few important items to keep in mind for the 2019 tax year:

• RRSP Contribution Deadline: March 2^nd 2020 for 2019 tax year. Yes, it is just around the corner. Why wait until the deadline? Do it as early as you possibly can.
  RRSP Maximum Contribution Limit is $26,500 for 2019 tax year, or 18% of your earned income, whichever is lower, plus any unused contribution room from previous years.
• Income Tax Return Deadline: April 30^th 2020 for most taxpayers. If you or your spouse carried on a business in 2019, you have until June 15^th 2020 to file your return. However, your balance, if any, still has to be paid no later than April 30^th 2020 to avoid interest and penalty.
  • If you are expecting a refund, file your return now and get back your money as soon as possible.
  • If you are expected to pay, send in your return before April 30^th, even if you can’t pay your balance, to avoid late-filing penalty.
• T4/T4A Return Deadline: March 2^nd 2020, for 2019.
• Business GST/HST Return Deadline: June 15^th 2020, for most GST/HST registrants, if you have an annual reporting period. However, your balance, if any, has to be paid no later than April 30^th 2020.
• Sale your home in 2019? Since 2016, you have to report the sale on your tax return in the year you sold it. However, if it is your principal residence, you usually do not have to pay any capital gain tax.
• Got married/divorced in 2019? Have a baby in 2019? Change in these statuses can impact your taxes and benefits. Make sure to mention these changes to your tax professional.
• Moved in 2019? You may be eligible to claim moving expense if your new home is at least 40 kilometers (by the shortest usual public route) closer to your new work/school.
• Foreign Property? If you have foreign properties and/or held foreign investments in your portfolio, with a total of $100,000 or more, you need to report them on the T1135.
• Taxable account expense? Management fees related to your non-registered accounts may be tax deductible.

Most companies and institutions are to start sending out the receipts and T-slips soon. May I suggest you start a brand-new folder for those and keep them all in there as they arrive. This will make it much easier when the time comes for filing your tax returns.

Remember to always “Dream It.  Plan It.  Live It.”
I am here to help you on your journey. Reach out if I can be of any assistance.

I trust that you have had a good 2019 so far and are looking forward to the holidays as well as the New Year.

As the year is coming to a close, it is time to do a year-end review, if you have not yet begun, and start planning for the coming year.

A few important items to consider for this year-end:

• TFSA: the contribution limit is $6,000 for 2019 and 2020 as well. If you have not yet made any contributions in the past, you can contribute up to $63,500 by the end of 2019 or $69,500 in 2020 (some conditions applied).
  • If you are going to withdraw from your TFSA soon, it is best to do it before the end of the year (instead of the beginning of next year). This withdrawn amount will be reinstated in your contribution room in 2020.
  • For Americans who reside in Canada, TFSA is not a tax-free account under IRS.
• RESP: you can receive the Canada Education Savings Grant (CESG) on the first $2,500 in contributions per year, or up to the first $5,000 in contributions, if sufficient carry forward room exists.
  • If you have not yet contributed the above amount, consider doing so before the year-end to maximize your annual matching.
  • If your child turned 15 this year, December 31^st 2019 is your last chance for opening an RESP account for that child & starting the first contribution.
• RDSP: you can get a maximum of $3,500 in matching grants in one year. A beneficiary’s RDSP can receive a grant on contributions made until December 31^st of the year in which the beneficiary turns 49.
• RRSP: you have until March 2^nd, 2020 to make a contribution toward 2019 tax year.
  • If you turned 71 in this year, December 31^st is the last day that you can contribute to your RRSPs. Depending on your situation, you might want to consider over-contribution by the end of December (some restrictions & penalties applied).
  • If you plan on withdrawing your RRSP under either LLP or HBP, consider delaying it to the new year to give yourself an extra year before the repayment required.
  • If you are making payments on your LLP or HBP, talk to us or your tax advisor to see if it is to your advantage to miss or to make the required payment for the year.
• Medical Expenses: This has been one of the most under-claimed areas. The 12-month rule allows you to claim any 12-month period ending in the tax year for yourself, your spouse and your eligible dependents.
  Depending on your situation, you might want to prepay certain medical expenses to claim the expenses for this tax year.
• Other Tax-Deductible Expenses: such as deductible accounting & legal fees, other professional fees, business-related expenses, child care expenses. Make sure to pay them by December 31^st.
• Moving? Choose your move date wisely, as tax rates vary between province to province. If you are to move to a lower tax province/territory, you might want to do so before the end of the year. Otherwise, consider delaying it until the new year.

I would like to remind you that we offer income tax return and bookkeeping services.
If you need a hand, or would like to discuss these and/or other tax planning strategies and how they affect your financial future, contact us directly.

Remember to always “Dream It. Plan It. Live It.“
I am here to help you on your journey. Reach out if I can be of any assistance.

As the year is coming to a close, it is time to do a year-end review, if you have not yet started, and start planning for the coming year.

Important items to consider for all taxpayers:

• Home Accessibility Tax Credit: This is a non-refundable tax credit for eligible expenses incurred for work performed or goods acquired for a qualifying renovation of an eligible dwelling of a qualifying individual.
  • A maximum of $10,000 per year in eligible expenses can be claimed, resulting in a maximum non-refundable tax credit of $1,500 ($10,000 x 15%).
• Medical Expenses: one of the most under-claimed areas.
  • The 12-month rule allows you to claim any 12-month period ending in the tax year for yourself, your spouse and your eligible dependents.
  • Depending on your situation, you might want to prepay certain medical expenses to claim the expenses for 2018.
• RDSP: A beneficiary’s RDSP can receive a grant on contributions made until December 31^st of the year in which the beneficiary turns 49. Maximum matching grants in one year is $3,500.
• RESP: you can receive the Canada Education Savings Grant (CESG) on the first $2,500 in contributions per year, or up to the first $5,000 in contributions, if sufficient carry forward room exists.
  • If you have not yet contributed the above amount, consider doing so before the year-end to maximize your annual matching.
  • If your child turned 15 this year, December 31^st is your last chance for opening an RESP account for that child & starting the first contribution.
• RRSP: you have until March 1^st, 2019 to make a contribution toward your 2018 tax year.
  • If you turned 71 this year, December 31^st  is the last day that you can contribute to your RRSPs. If you still have contribution room left, consider over-contributing this time (some restrictions & penalties applied).
  • If you are planning on withdrawing your RRSP under either LLP or HBP, consider delaying it to the new year to give yourself an extra year before the repayment required.
  • If you are making payments on your LLP or HBP, consider the advantage/disadvantage of missing or making that required payment for this year.
• TFSA: the contribution limit for 2018 is $5,500. If you have not yet made any contributions in the past, you can contribute up to $57,500 (some conditions applied).
  • If you are going to withdraw from your TFSA soon, consider doing so before the end of the year (instead of the beginning of next year). This withdrawn amount will be reinstated in your contribution room in the new year.
  • The contribution limit for 2019 is $6,000.
  • For Americans who reside in Canada, keep in mind that TFSA is not a tax-free account under IRS.

Click here to view more year-end tax planning for Entrepreneurs.

I trust that you find these highlights useful.
I would like to remind you that we offer income tax return and bookkeeping services.

If you need a hand, or simply would like to discuss these and/or other tax planning strategies and how they affect your financial plan, contact me directly.

Remember to always “Dream It. Plan It. Live It.”

I am here to help you on your journey. Reach out if I can be of any assistance.