While at dinner recently, a friend of mine, Carla, informed me that she sold her rental property and was curious about the amount of tax that she would owe on the gain. Upon further questioning, I uncovered that, in the past, my friend had lived in this rental property (a condo) for many years. She purchased a second condo a few years back and moved into it. She had then rented out the first condo—the one she just sold. From her line of questioning, I realized that, other than the tax ... Read More
Which Canadian Personal Income Tax Deductions are Worth The Fuss?
Which Canadian Personal Income Tax Deductions are Worth the Hassle? As spring draws near, Canadians can look forward to cherry blossoms and spring skiing. Another event is the filing of their personal income tax returns. With all the tax deductions and credits rules in the Income Tax Act, compiling all the information for your tax accountant to complete your personal tax return accurately, timely, and economically can be a challenge. Accounting professionals want the same things for our ... Read More
Vancouver Hair Salons: Business and Tax Tips – Part 2
The following blog post is a continuation on my previous blog post Vancouver Hair Salons: Business and Tax Tips - Part 1. If you'd like to catch up, please take a moment to review it. Hair Salon Industry Analysis In the hair salon industry, image and trends matter. Talented Vancouver hair stylists are a must, but the industry is too competitive. From my experience as a Vancouver Chartered Accountant serving different hair salons, I have found that in order for Vancouver hair salons to ... Read More
Filing Canadian Corporate Tax and HST Returns on Time
Just File Your Canadian Tax Return on Time! During the past year, I have noticed that Canadian Revenue Agency (CRA) is putting more pressure on Canadian corporations to file their corporate tax and HST returns on time. The tactics being used by CRA include constant reminder notices being sent soon after the filing deadline has passed as well as withholding HST and/or corporate tax refunds until all of the business' filings are current. As a Vancouver chartered accountant, I don’t mind the ... Read More
B.C. Business Income vs. Capital Gains – It’s All About Intention
Mew & Company Chartered Accountants in Vancouver provides businesses with tax advice: One of the most commonly disputed tax issues is whether a gain from a transaction is considered as business income or as a capital gain. The reason for this dispute is due to the tax implications of each type of gain we're talking about. If a gain is considered business income, the entire gain is taxable. If a gain is considered a capital gain, only half of the amount is taxable. Therefore for any gain, ... Read More
Canadian Corporate Tax Planning: On Investing Retained Earnings
What should I do with my Corporate Retained Earnings? As a Vancouver tax advisor to small, privately held Canadian corporations, many of my new clients are often unaware of all the investment options and tax benefits of investing their hard-earned corporate retained earnings. The small business corporate tax rate is only 13.5% on the first $500,000 of profits. That is incredibly low. A successful and diligent business can accumulate retained earnings quickly within this tax ... Read More
