What is the business-use-of-home deduction? Business-use-of-home is a means by which a business owner can deduct expenses for the business use of a work space in your home, as long as you meet one of the following conditions: it is your principal place of business; OR you use the space only to earn your business [...]
The special Work-From-Home deduction relating to Covid-19 came into effect for the 2020 tax year and continued until the end of the 2022 tax year. Let's recap what this deduction does and how to claim it. The Covid-19 Work-From-Home Deduction As a consequence of the Covid-19 pandemic, the Canadian government allowed a special Work-From-Home deduction [...]
We've talked elsewhere about CRA Matching, the process by which CRA takes a closer look at a tax return and the slips on file for a taxpayer to look for errors. Usually, CRA is very good at this. After all, looking at documents and numbers is their stock in trade. In our experience they're [...]
Form T1135 Foreign Income Verification Statement must be filed when a Canadian taxpayer answers 'yes' to the question "Did you at any time in the year own specified foreign property valued at over $100,000 (CAD)?" Watch: Foreign Property and the T1135 However, some real estate is considered exempt from this question, and therefore doesn't trigger [...]
Divorce and separation are painful life events, and it’s natural to want to distance yourself from the experience – and your ex -- for a while. But when it comes to your taxes the fastest route is always getting it right the first time, and that means you will have to communicate and cooperate with [...]
Video: Overdue Tax Returns - Should You File? The Short Answer Is ‘Yes’ Filing old late tax returns. Should you do it? I know I’m biased. I am a tax professional and I prepare tax returns for a living. Of course I'm going to tell you to file your tax returns. But bias or no, [...]
Q: Since I registered for the GST-HST I have still not earned over $30,000, so I haven’t charged GST-HST. Now the Canada Revenue Agency (CRA) has sent me a GST bill saying I owe them thousands of dollars in GST-HST, even though I haven’t earned enough income and I haven’t been charging GST-HST on what [...]
This is the third post in our series for incorporated people about salary vs dividends. The first part can be found here. The second part is here. In previous blog posts [ here and here ] we’ve discussed the tax implications for an owner paying themselves via a salary vs dividends. But there are other [...]
This is the second post in our series for incorporated people about salary vs dividends. The first part can be found here. Taxes are usually the main consideration when a corporation's owner is deciding whether to pay themselves a salary, dividends, or some combination of the two. Some people believe that for tax purposes dividends [...]
This is the first post in our series for incorporated people about salary vs dividends. Salaries and dividends seem similar from the outside perspective of the person receiving money. However they are conceptually very different from one another from the inside, i.e. from the corporation’s internal accounting perspective. Begin with the most basic calculation of [...]
