Personal Income Tax
Our full service tax office offers full cycle accounting and income tax preparation services:
Starting July 2013, seniors have the option to defer their OAS up to 5 years to receive an increased pension. The increase will be 0.6% per month to a maximum of 36%. This is beneficial if you expect to live beyond age 84.
If you are nearing retirement age, keep in mind that changes to the CPP may have rendered previous retirement planning advice obsolete. Before you apply for your Canada Pension Plan benefits, ask us when the best age to start your benefits is.
If you are still working, you may elect to not make CPP contributions once you are over age 65. However, if you file your taxes more than one year late, you no longer have a choice; you MUST contribute to the CPP.
BC seniors can deduct the cost of home renovations started after April 1, 2012. To qualify, the renovation must be to allow easier access for the senior. For example: ramps, non-skid flooring, and walk-in bathtubs. This is in addition to the Medical Expense credit that the same expenses are eligible for. Yes, double-dipping is allowed! Also note that this is a refundable tax credit. This means you can get money back even if you pay no taxes.
The contribution limit to Tax Free Savings Accounts (TFSA) is $5500 for 2018. All unused carryforward amounts remain unchanged. Regular investment in your TFSA could lead to a tax-free retirement. Start early to reap the benefits of compounding.
The Registered Disability Savings Plan (RDSP) provides for the retirement of disabled individuals. If you missed the government grants, there is a 10-year catch up provision. The program started in 2008, so you still have time to receive them!
Always remember: The CRA is under no obligation to tell you if you have missed any credits or deductions. Keep up to date by subscribing to CRA newsletters, attending tax seminars, or consulting with a tax professional.
Employment Insurance Measures for Self-Employed People
Service Canada has posted a FAQ on the topic of the new EI program for self-employed people. I have read it over, and analyzed the information. Find out what benefits are available and what other options are available.
CRA Reduces Record-keeping Burden for Motor Vehicle Use
For years, small business owners have been required to keep detailed trip logs to back-up their claim for motor vehicle use. Now, the CRA will allow a simplified method of calculating business use of vehicles.
After keeping a detailed trip log for one full year, the CRA will allow small business owners to keep a sample 3-month log in subsequent years. As long as this 3-month sample is within 10% of the previous years' business usage, no further logs will be required for the year.
Business owners must still keep all expense receipts for the year, which is easily done by keeping an envelope in the glove box of the vehicle. This simplified vehicle log method will save the small business owner time, allowing him or her to concentrate on business rather than on remembering to record mileage.
Tax Free Savings AccountHave you set up your Tax Free Savings Account yet? All Canadian residents aged 18 and over should make an appointment with their financial advisor to set one up. You will need your SIN and proof of birthdate (birth certificate or drivers license).
More information on TFSAs.
Roxanne and Frango are available for appointments Monday through Friday and some Saturdays.
Please contact us to arrange a time to meet.