More small businesses are now on cloud account software. Many business owners are performing the bookkeeping functions on their own and just as many business owners hire a bookkeeping firm who specializes in cloud software to do the bookkeeping. Now, AI is getting involved to limit human coding errors that still exist with cloud software. As for me, the external accountant, I have noticed considerable improvement with both, the software and the users maximizing the software full ... Read More
Why a Real General Ledger is the First Line of Defense During a CRA Tax Audit
Many mature businesses have endured this at least once during their life time – a CRA tax audit. Most businesses survive an audit with no issue. This happens when the business has an adequate set of financial records that is easy for the CRA auditor to examine. So what makes up an adequate set of financial records. First of all, the CRA audit has changed from twenty years ago. In the past, an actual person came to the business premise to examine the books and records. Hence if the ... Read More
A Liquidity Crunch in Vancouver
Just two years back, when buying condo presales was the rage of investing free cash in Vancouver, I wrote a short blog cautioning investors to begin preparation years ahead for the closing date of the deal. When the condo completes, full payment of the balance on the condo is required to close the deal; hence qualifying for the mortgage at that future time required some income reporting planning. Back then, waiting for construction completion date to close the deal was not necessarily part ... Read More
Last Chance Tax Planning for 2018
As 2018 comes to an end, tax advisors across Canada are busy restructuring and planning many corporations to respond to the new tax rules that came into existence this year.
BC's New Tax Law Called Tax on Split Income (TOSI)
The biggest new tax law introduced this year is Tax on Split Income or TOSI for short. TOSI is so complicated that many tax advisors use a flowchart to visually follow the rules to assist in determining where the taxpayer stands with this rule this year. As ... Read MoreNon-Canadian Resident and Collecting Rental Income in Vancouver
Non-Canadian residents who own Canadian real estate and collecting rental income have two ways to deal with the Canadian tax liability.
The first method is remit to the CRA, 25% tax on the gross rent collected. This 25% is due to the CRA on the 15th of the following month the rental income was credited to the non-Canadian resident. This tax is considered the final tax liability on the rental income and the non-Canadian resident has no further obligation. However, the non-resident ... Read MoreDeath of a Taxpayer – A To Do List
Death of a family member is one of the most stressful events in life. To compound the grief, there are final tax matters to deal with either by April 30th of the following year or 6 months after the date of death.
What To Do Upon The Death of a Taxpayer?
Upon the death of a taxpayer, at a minimum, there is a final return (“terminal return”) to be filed with the CRA and three optional returns to be filed if desired. In addition, a trust return to report income received after death is ... Read MoreVancouver Tax Planning for CCPC’s As We Approach the Second Half of 2018
As the summer of 2018 comes to an end, vancouver tax advisors are starting to contemplate the tax planning work that will be required for CCPC come fall 2018. At the start of 2018, tax advisors and incorporated businesses awaited the 2018 federal budget with high level of anxiety. After all, the initial announcement to eliminate the tax deferral advantage that a CCPC enjoyed using its after-tax business income to earn passive income was severely punitive. As time passed and Ottawa responded ... Read More
Vancouver Tax Planning Dilemmas As 2017 Come To A Close
2017 has been a year of drama for Vancouver tax advisors and I am happy that it is coming to an end. I have to admit, it is not so much January 1, 2018 I am looking forward to. I am anxiously waiting for the 2018 budget date which may bring all Canadian private corporations more clarity on their financial and tax future. Vancouver Tax Planning - Changes For Private Coporations On July 18, 2017, Ottawa proposed dramatic changes to the taxation of private corporations. Since then, Ottawa has ... Read More
Dealing With the Death of Your Accountant
There are many tax-planning tips for death and estate, but not much is written about the death of your accountant who has been taking care of the family’s finances for decades. I just read a statistic that says 43% of financial advisors are over the age of 55, and are approaching retirement. Even my own experience with new clients tells me that there are more than a few well-established financial advisors getting ready to retire in the Greater Vancouver Area. If you suspect that your ... Read More
Cloud Based Accounting: The Cloud, The Books, The Bookkeeper, and His Death
The use of cloud-based accounting software began to surface about five years ago, amongst my clients. Since then, I’ve seen more young entrepreneurs adopting software quickly and with minimum training. Accounting software, desktop or cloud-based, is supposed to be user friendly for non-accountants, and this has been the case since accounting software came onto the scene in the 1990s. Now, with cloud-based accounting platforms, the clumsy need to transfer an actual physical file to various users ... Read More
