Skip directly to content

tax

What does Trudeau’s administration means to our finances?

on Tue, 10/20/2015 - 22:00

Canada went to pull on Oct 19 and elected Liberal party in charge of the country for the next 4 years. So, what does it actually mean to you and me personally?

Personal tax - 
1. TFSA contribution limit will decrease back to $5,500
2. Cancel family income splitting
3. Replace CCTB with Canada Child Benefit
4. Increase income tax on income earners over $200k by 4% (29% to 33%)
5. Decrease income tax on income earners from $44,700 to $89,401 by 1.5% (22% to 20.5%)
6. Reinstate Labour sponsored funds tax credits
7. Loosen HBP’s rules allowing more home buyers to be able to purchase their homes

What to do to save tax in Canada?

on Mon, 10/05/2015 - 22:55

As a financial advisor, I always have discussion with clients and prospect on cashflow management, tax strategies and saving strategies. Whereas tax strategies seems to be one of the most brought-up issue (knowing that we pay high tax in Canada, this probably not surprising). 

The Canadian taxation system is a gradual system, the more income you earn, the more tax you pay. If you are not sure how much tax you should pay, CRA has listed what percentage how much income should be taxed. If you want to know the exact amount you need to pay based on your income, Ernst & Young has an online

Year End Financial Moves - 2014 update

on Sun, 12/14/2014 - 21:45

We have still about 2 weeks to go before 2014 leave us for good. Other than what I had written last year, I am adding a couple of moves this year :)

Make RSP withdraws

We talked about RSP meltdowns from time to time. If that's something you are considering and should your (projection) income in 2014 is lower (relatively) than your previous years, you might want to consider withdrawing a portion of your RSP before the year ends.

Tax reporting tips

on Thu, 03/27/2014 - 20:22
*Updated 4/5/2017
 
At this point, everybody is busy gathering all their T-slips for tax filing.
 
As mentioned before in this post before, other than waiting for your company to give you your T-slips, you can log into your Service Canada and see if you find anything there.
 
After all these years, I found most people are still not too sure what they are expecting to receive for their tax. I had received quite some inquiries from clients regarding their T-slips.
 
RRSP
- There are NO T-slips on RRSP accounts, do not expect any tax documents on RRSP accounts unless you make changes
-

What does 2014 budget means to YOU?

on Wed, 02/12/2014 - 14:44

As a layman, big plans get to us slowly, this budget the government delivered had some small plans for us.

1. Canadians no longer have to "apply" for GST/HST credit on tax returns. CRA will calculate for us "automatically".

2. Stopping banks from charging to provide credit card bills in the mail, that might expand to wireless phone bills too.

3. Income split to minor more flexible

4. Lowering credit card costs for businesses & increase transparency on merchant fees.

5. New innovation fund & youth employment program, together in "helping" to match older workers in job matching to keep

Year-end financial moves

on Mon, 12/16/2013 - 12:33

I was actually trying to avoid this topic for the longest time, since there are already so many of them out there, I thought my readers would have more than enough information needed regarding what they need to do by the year-end to make sure they get what they need for the 2013 calendar year...

Turns out, still lots of people seems not too sure what is needed and why they need to take these deadlines seriously. Remember, CRA only looks at the date, they won't forgive you simply because you were "not aware" it should be done before the year-end.

So, while we are entering the last 2 weeks of Dec

Business budget made easy

on Sat, 08/10/2013 - 20:56
"Entrepreneurship and Small Business" series, #7 (#6 The advantage of a business account; #5 How to pay yourself effectively; #4 How to manage your business; #3 Things to consider when you start your business; #2 What you should do before you quit your full time; #1 What needs to be prepared before you start your business; #8 Last minute tax saving for corporations; #9 The federal disaster to small businesses and working class
 
Lots of business owners asked me: how do we manage our business finances?? How do we come up with a calculation of how much we spend on marketing (that's the

What does the federal budget 2013 mean to YOU?

on Sun, 03/24/2013 - 08:47

 

As a financial advisor, I make a point of keeping current with issues that pertain to the financial health of my clients and their families.
 
Last week, Finance Minister Jim Flaherty delivered his federal budget for 2013. Here is an overview of budget highlights that may affect your financial plan.

Small business owners  

Tax on dividends out of your small business corporations will increase about an overall 2%, that is not a very good news, but dividending out your money is still has lower tax rate than having a salary from your corporation.

A recent change on Service Canada's web access

on Fri, 02/22/2013 - 18:22

I previously wrote a post What is my CPP going to look like? on how to set up your account with Service Canada, so that you can check how your CPP looks and see your "Record of Employment"s online. 

So, it turns out they have made changes recently. We no longer need "Access Key" to get into the site. On the My Service Canada Account page (http://www.servicecanada.gc.ca/eng/online/mysca.shtml), you either a first-time user or a returning user, for those who had an access key already, the transition steps are pretty straight forward.

New steps to registration for access to Service Canada's

How to manage your business

on Tue, 12/25/2012 - 03:28

"Entrepreneurship and Small Business" series, #4 (#3 Things to consider when you start your business; #2 What you should do before you quit your full time; #1 What needs to be prepared before you start your business#5 How to pay yourself effectively; #6 The advantage of a business account; #7 Business budget made easy; #8 Last minute tax saving for corporations; #9 The federal disaster to small businesses and working class)

Now you have got most of your rhings set up and you had started your business for some time, these are things you might need to look into at this point so that you can

Pages