Ramesh Gupta CPA Professional Corporation - Our Blog

Canadian federal tax credits are designed to encourage specific business activities, improve competitiveness, and reduce the overall tax burden for businesses. To help you find which credits you may be eligible for, we’ve put together this handy list of links to each one.

In Canada, organizing your information for income tax filing is crucial to ensuring accuracy and maximizing deductions. Here’s the best way to save and manage your tax-related documents:

Canadian income tax is getting more complicated every year. The following outlines ways to minimize your taxes which may save you money!

Personal taxes in Canada are based on a progressive tax system, meaning the more you earn, the higher percentage of tax you pay. Here’s a general breakdown of how the system works:

The age at which you should start taking Canada Pension Plan (CPP) benefits depends on your personal financial situation, health, and retirement plans. You can begin taking CPP anytime between age 60 and 70, but the timing significantly impacts your monthly payments.

Here’s a breakdown of the key factors to consider:

Now that you understand how a RRIF works, you need to take the Tax Implications of RRIF Withdrawals into account to maximize your income. Not doing so could lead to lower returns in your pocket.

Do you consider yourself a DIY type of person?

How about the office worker who can help their neighbour with a computer problem or can cook a gourmet meal for a group of 10 at the drop of a hat? All this, in addition to being able to keep his workplace organized. You probably know people like that who display genius in many areas, on demand. Good for them; they can be treasures when you need a friend as they can sometimes save you money.

This article is timely, with the end of the year in sight.

A Registered Retirement Income Fund (RRIF) is a retirement income vehicle in Canada, designed to provide a steady income stream to retirees by converting savings from a Registered Retirement Savings Plan (RRSP) into taxable income. Here's how it works:

As explained in our previous entry, Section 85 of the Income Tax Act provides a mechanism for taxpayers to transfer certain types of property to a corporation on a tax-deferred basis. It is commonly used for business reorganizations, incorporating sole proprietorships or partnerships, and transferring assets between related corporations while deferring tax on accrued gains.

The Section 85 rollover of capital property in Canada is a provision in the Income Tax Act that allows a taxpayer to transfer certain capital property to a corporation on a tax deferred basis. This means that the transferor (an individual, partnership, or corporation) can defer recognition of any capital gains that would otherwise be triggered by transferring the property. Section 85 rollovers are commonly used in situations like estate freezes, corporate reorganizations, or incorporating a sole proprietorship.

Integration of the corporate income tax system aims to prevent double taxation of corporate earnings. In Canada, this system allows income earned at the corporate level, which is then distributed as dividends to shareholders, to be taxed once at a combined corporate and personal level similar to how personal income would be taxed directly.

When advances or loans are made to shareholders this should be recorded in a general ledger account set up for this purpose. If a loan is made for which the interest would be tax deductible for the shareholder, it is important to track this loan separately from other advances or loans.

In Canada, capital gains are taxed when you sell an investment or property for more than its purchase price. However, there are several strategies to reduce or avoid capital gains tax. Here’s how you can manage it:

Canada’s Tax-Free First Home Savings Account (FHSA) is a savings tool introduced in 2023 to help Canadians save for their first home. It combines features of both the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP), allowing for tax-deductible contributions and tax-free withdrawals when used for a first home purchase.

In Canada, a Personal Services Business (PSB) is a type of business that the Canada Revenue Agency (CRA) designates under certain conditions. The rules governing PSBs are stringent, and the tax treatment of a PSB is less favorable compared to other types of corporations. Here’s an overview of what constitutes a PSB and its implications:

Receiving a notice of audit or review from the Canada Revenue Agency (CRA) can be stressful, but by avoiding the Red Flags that can trigger and audit and knowing the do's and don'ts when dealing with the process can help you navigate thruogh the event smoothly. Here are some guidelines:

The 2024 Canadian Budget introduced several changes related to capital gains that are important to be aware of. Here are the key points: