Personal Services Corporation-What You Need to Know

If you are an IT consultant or work on a contract basis, you should be aware that in October 2012, the government increased the tax rates for personal services corporations by 13%! This change in the tax rate and the recent focus on IT contractors by the CRA can have a dramatic effect on your business if you fall into…

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Why Use an Accountant?

Accountants do more than your bookkeeping and prepare your taxes. In fact, an accountant with a professional designation has expertise in finance, business management, technology, taxation, and business management. Your accountant has a stake in you and your business. We are your advisor and counsel who can be depended on to deliver objective advice. Other ways an accountant can help you includes: Succession…

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How To Split Pension Income

Congratulations, you have reached a milestone and have finally retired. You are receiving a pension from your former employer and would like to split it this with your spouse under the pension splitting rules. What is Pension Splitting? If you receive pension income eligible for pension income tax credit, you can split up to 50% of this pension income with…

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12 Income Splitting Opportunities

Many of the income splitting opportunities have been curtailed by a set of rules known as the attribution rules. When opportunities are available, they can be complex, expensive, and difficult to maintain. However, if you and other family members are in very different tax brackets, the benefits may be substantial. Record Keeping Proper records are a must when establishing an income splitting arrangement.…

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Tax Tip: Disability Tax Credit – Do You Qualify?

You may be surprised to know that the federal and provincial governments offer generous personal tax credits for: Persons with disabilities, or The person who supports another person (family member) with a disability. If you or the person you support qualifies, you may be entitled to claim these credits retroactive to the start of the disability (or 10 years back,…

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Read more about the article Tax Tip: Defer Capital Gains
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Tax Tip: Defer Capital Gains

When you sell certain types of property including shares, real estate, a business or farm for a gain you may be able to defer the tax on the capital gain for up to 5 years and in in certain circumstances, 10 years. The Income Tax Act allows you to defer a portion of your capital gain when you sell property but do…

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