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.

As the year is coming to a close, it is time to do a year-end review, if you have not yet done so, and start planning for 2019.

The joy of being your own boss comes with extra responsibilities.

Extra important items to consider for entrepreneurs & investors:

• Bookkeeping: December 31^st means statements, invoices, receipts, etc.
  May I suggest that you put aside some time during the holiday and get a head start with your paperwork gathering, if you have not yet started during the year. This will make your tax time much less stressful.
  I would like to remind you that we offer bookkeeping & tax preparation services. Please contact me directly to schedule an appointment.
• Depreciable Asset Purchases: the CRA has a first-year rule on most of depreciable properties. That means you can’t deduct the full cost of depreciable property for the year in which you acquired the property. You can reduce your “loss” portion by planning your purchases near the end of your fiscal year.
• Legal, Accounting and other Professional Fees: in most cases, these fees are tax deductible. Make sure your invoices are dated by or before December 31^st 2018, if you wish to claim these fees for the 2018 tax year. Same goes for other deductible expenses.
• Income: if you wish to defer your income to 2019 tax year, consider dating and sending out your invoices on or after January 1^st, 2019.
• Year-end Tax Loss/Gain: December 27^th, 2018 is the last trade date for the 2018 tax year. Remember that loss can carry back 3 years, or carry forward indefinitely. Make sure to watch out for the superficial-loss rule. Consider utilizing this rule to shift unrealized losses between spouses.

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

I trust that you find these highlights useful.

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.

Thanksgiving has arrived and it arrived early.

On September 21st, our region was hit with not only one but six tornadoes. I am so proud of our Ottawa/Gatineau region for shining our humanity by pulling together and showing kindness through adversity. We opened our homes and our hearts to ensure our neighbours/community were taken care of.

We have shown that not only are we survivors but also some of the best in humanity. To the men and women who worked tirelessly to get things back to normal for us, we are extremely grateful.

As we get ready for Thanksgiving, I take great pleasure to personally express my deepest gratitude for your trust, your friendship, your continuing business relationship, and most of all, YOU. It is a privilege that I get to work with you, my wonderful people, to turn your dreams into realities. Thank YOU!

For this season, I would like to challenge you into having smaller celebrations and donating food, money or volunteering your time to the Food Banks. Let’s continue this spirit of kindness and help those who were left without homes and who have to start fresh.

For those who are traveling for the holidays, out of province or overseas, make sure to invest in travel insurance. Make sure the insurance covers your entire trip, including the day you leave and the day you return.
Please follow this link for our Holiday and Travel Tips – “Bon Voyage, But…”

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

It is that time of the year again:  the RRSP season and the income tax return season. I would like to remind you that we do offer bookkeeping & tax return services.
Please contact us directly to schedule appointments and discuss how you can benefit from our services.

Important items/deadlines for the 2017 tax year:

RRSP Contribution Deadline: March 1^st 2018 for the 2017 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 $26,010 for 2017 tax year, or 18% of your earned income, whichever is lower, plus any unused contribution room from previous years.

T4/T4A/T5 Return Deadline: February 28^th 2018, for the 2017 tax year.

Interest Payment Deadline: January 30^th 2018, for interest payment on employee loans and prescribed rate loans.

Income Tax Return Deadline: April 30^th  2018 for most taxpayers. If you or your spouse carried on a business in 2017, you have until June 15^th 2018 to file your return. However, your balance, if any, still has to be paid no later than April 30^th 2018 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 2018 even if you can’t pay your balance, to avoid late-filing penalty.

Business GST/HST Return Deadline: June 15^th 2018, for most GST/HST registrants, if you have an annual reporting period. However, your balance, if any, has to be paid no later than May 1^st

Got married/divorced in 2017? Had a baby in 2017? Change in these statuses can impact your taxes and benefits. Make sure to mention these changes to your income tax professional.

Home Accessibility Credit: You can claim up to $10,000 of eligible expenses. If an eligible expense also qualified as a medical expense, you can claim both the medical expenses tax credit and the home accessibility credit for that expense.

Bought your home in 2017? For qualified first time home buyers or eligible persons with disabilities, you can claim the home buyers’ amount of $5,000 for the purchase of a qualifying home. You may also be eligible for a new housing rebate for some of the GST/HST paid.

Sold a house in 2017? Starting 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.

Moved in 2017? 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.

Most companies and institutions have started sending out the receipts and T-slips.
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 income tax returns.

Remember to always “Dream It.  Plan It.  Live It.”
I am here to help you on your journey. Do not hesitate to reach out if I can be of any assistance.

Despite the Canadian dollar being at its historical low, many Canadians are still finding value in visiting the United States for bargain hunting or catching discount flights.

Whatever the reason for you to cross the border, you will need travel insurance! US and international medical costs continue to rise, and it’s in your best interests to be covered.

Why should I get travel insurance?

“BON VOYAGE, BUT …”, published by Foreign Affairs, Trade and Development Canada, states: “Do not rely on your provincial or territorial health plan to cover costs if you get sick or are injured while abroad, or even out-of-province.”

Your provincial health care plan provides only limited coverage for medical treatment and hospital costs. Expenses such as ambulance services, emergency dental treatment and prescription drugs may not be covered.

Out-of-country healthcare can be costly, and your health plan may not cover any medical expenses abroad. You might need to get some top-up travel insurance.

Some credit cards do offer travel insurance, but these plans often have limited benefits and coverage.

Without travel insurance, a broken arm or even the flu could turn into a substantial medical bill, potentially costing you hundreds or thousands of dollars more than you thought you would spend on your trip.

For a few cents a day, travel insurance protects you, the ones you love, and your belongings from the financial nightmare of an accident or sudden illness on a trip, and from unexpected expenses if you miss a flight or if your luggage is stolen.

Spend a little NOW — and save a whole lot later.

When should I purchase travel insurance?

Buy insurance coverage from the time you purchase your ticket to be on the safe side or before leaving on your trip at the latest. Make sure the insurance covers your entire trip, including the day you leave and the day you return.

If you normally take more than one trip annually, you can save money by purchasing a Multi-Trip Travel Insurance.

Which travel insurance plan is best for you?

There are many choices and options available. Whether you′re looking for a little peace of mind or a lot of travel protection, you can have a customizable insurance plan that fits your needs, for just about any kind of trip, anywhere in the world.

Here are some of the choices:

Trip Cancellation / Trip Interruption Insurance
Provides coverage in case your travel plans are cancelled or disrupted due to unforeseen reasons including a new government formal warning regarding the travel destination, missed connection, unexpected medical emergency or death.

Baggage Insurance
Pays for the loss, damage, destruction or theft of personal effects owned by you while in transit, or while in any hotel or any other building, en route anywhere in the world, on water, land or in the air.

Accidental Death and Dismemberment Insurance
Provides coverage in the event of your death or dismemberment as a result of an injury while riding as a fare-paying passenger on an airplane, helicopter or common carrier (bus, train, boat).

Emergency Travel Medical Insurance
Provides coverage in case of injury or sickness requiring an emergency hospital stay or emergency medical treatment while traveling outside of your home province or territory abroad or within Canada.

Additional benefits include: licensed ambulance, emergency dental expense, prescription drug reimbursement, emergency medical transport, family transportation expense, board and lodging for you or your traveling companion while you or your traveling companion is confined to hospital, escort home of insured children and more.

All-Inclusive Insurance – the most popular plan
Provides you extensive coverage for your trip. The All-Inclusive Insurance combines all of the above insurances.

Student Travel Insurance
Provides coverage for international students studying in Canada, Canadian students studying either abroad or outside their principal province of residence.

Visitors to Canada Travel Insurance
Provides coverage for people visiting or applying for a Super Visa, people in Canada on a work or student visa, new immigrants who are waiting for government health insurance plan coverage and returning Canadians who are waiting for the reinstatement of their government health insurance plan coverage.

How much does travel insurance cost?

Contact us directly for more choices. We are more than happy to serve you.
If you wish to do your own research, here are a couple of links to get you started:

 Regardless how you do it, make sure you enjoy your trip to its fullest.

Bon Voyage!

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.

It is that time of the year again:  the RRSP season and the income tax return season. I would like to remind you that we do offer income tax preparation as well as bookkeeping services for individuals and self-employed entrepreneurs.
Please contact me directly to schedule an appointment.

A few important items to keep in mind for the 2016 tax year:

• RRSP Contribution Deadline: March 1^st 2017 for the 2016 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 $25,370 for 2016 tax year, or 18% of your earned income, whichever is lower, plus any unused contribution room from previous years.
• T4/T4A/T5 Return Deadline: February 28^th 2017, for the 2016 tax year.
• Income Tax Return Deadline: May 1^st 2017 for most taxpayers. If you or your spouse carried on a business in 2016, you have until June 15^th 2017 to file your return. However, your balance, if any, still has to be paid no later than May 1^st 2017 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 May 1^st 2017 even if you can’t pay your balance, to avoid late-filing penalty.
• Business GST/HST Return Deadline: June 15^th 2017, for most GST/HST registrants, if you have an annual reporting period. However, your balance, if any, has to be paid no later than May 1^st
• Got married/divorced in 2016? Had a baby in 2016? Change in these statuses can impact your taxes and benefits. Make sure to mention these changes to your income tax professional.
• Home Accessibility Credit: You can claim up to $10,000 of eligible expenses. If an eligible expense also qualified as a medical expense, you can claim both the medical expenses tax credit and the home accessibility credit for that expense.
• Bought your home in 2016? For qualified first time home buyers or eligible persons with disabilities, you can claim the home buyers’ amount of $5,000 for the purchase of a qualifying home. You may also be eligible for a new housing rebate for some of the GST/HST paid.
• Sold a house in 2016? Starting 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.
• Moved in 2016? 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.

Most companies and institutions have started sending out the receipts and T-slips.
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 income tax returns.

Remember to always “Dream It. Plan It. Live It.”
I am here to help you on your journey. Do not hesitate to reach out if I can be of any assistance.

I trust that you have had a good year so far and an amazing summer. I spent a good part of my free time visiting Asia, relaxing in the Caribbean and trekking around Newfoundland. I even spent a couple of days in Paradise. Yes, the town of Paradise, in Newfoundland, that is.
Pictures are to follow soon on my Facebook page HelenaCFP. While you are there, take a look at our “Retire Right” page and “like” it.

The end of the third quarter is fast approaching, it is time to do a mid-year review, if you have not yet done so.

A few important items to consider for all taxpayers:

• Eligible Tax Benefits: Did you receive those tax benefits that you qualified for such as GST/HST refund, Ontario Trillium benefit and Child Tax benefit. If you filed your tax return on time, you should have received those payments already.
• 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.
  Plan payments for your major medical expenses to take advantage of this rule. Most of the time, the lower-income spouse should make the claim, with some exceptions.
• TFSA Withdrawals: This has been one of the most misunderstood areas. Any withdrawals made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.
  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.)
• Investment Portfolios: when was the last time you reviewed your investment portfolios with your advisors? You work hard for your money. Make sure it works just as hard for you.

A few important items to consider for self-employed individuals:
Being your own boss comes with few extra tasks such as:

• Bookkeeping: gather up and organize your receipts, invoices, motor vehicle expenses, business use-of-home expenses, etc.
  Whether you use a bookkeeping service or do it yourself, do NOT wait until the end of the year. Do some diligence now and save yourself some headaches at tax time. Better yet, get it done quarterly.
  We do offer income tax return and bookkeeping services. Reach out if you need a hand.
• Business Income: by now, you should be able to make an estimate of your income for the year. Are you on track with your business goals? And what lessons can you learn from this?
• Tax Liabilities: now that you’ve done the first two steps, you can estimate your tax payable amount. Did you put aside some money for those payments?
  Don’t forget the GST/HST payment if you are a GST/HST registrant.
• Depreciable Asset Purchases: the CRA has a first-year rule on most of depreciable properties. That means you can’t deduct the full cost of depreciable property for the year in which you acquired the property. You can reduce your “loss” portion by planning your purchases near the end of your fiscal year.

I trust that you find these highlights useful.
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.