Taxes

Donating Securities - A Viable Charitable Donation Option

Donating Securities – A Viable Charitable Donation Option

The majority of people will agree that when you give to a cause that is important to you it makes you feel good.  Traditionally, most donations to charitable organizations have been done via donating forms of cash.  Others provide donations of unused goods or services on a pro bono basis. These methods of donating provide the donor with tax savings in addition to feeling good. What if you could increase the amount of money you …

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Record Keeping for CRA

Record Keeping for the Canada Revenue Agency Purposes

The Income Tax Act requires books and records to be kept by every person, partnership, corporation, trust etc. who is required to pay or collect taxes or other amounts. Good financial records are essential for completing personal and corporate income tax returns. Without accurate records you and/or your business may under or over pay taxes or be subject to an audit by the Canada Revenue Agency (CRA) due to insufficient supporting documentation. How long do …

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Not For Profit Organizations

Are Not-for-Profit Organizations required to file tax returns?

Not-for-Profit Organizations (“NPOs”) that are incorporated under Federal or Provincial legislation are generally exempt from corporate income tax under the Income Tax Act. However, in most cases, an NPO is still required to file a tax return(s). It is important to note that an NPO is different from a Registered Charity (“Charity”). A Charity needs to apply to the Canada Revenue Agency (“CRA”) for charitable registration. A Charity is exempt from tax and can issue …

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Capital Dividends

They say the best things in life are free. That’s what Capital Dividends are to …

They say the best things in life are free. That’s what Capital Dividends are to shareholders of Canadian small businesses. When a Canadian controlled private corporation generates a capital gain from the sale of investments or the sale of capital assets, such as land or business goodwill, one half of the gain is subject to corporate income tax. So what happens to the other half of the gain? How to Pay your shareholders tax-free? The …

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Should you pay your personal expenses from your business?

Should you Pay your Personal Expenses from your Business?

Do you ever use your business bank account or credit card to pay personal expenses? Perhaps you are out doing errands for your business and pick up personal items at the same time. Rather than asking the sales clerk to process two transactions, you charge all the items to your business credit card. Is this Ok? Yes, but it’s a bad idea! CAN I USE MONEY THAT COMES INTO MY BUSINESS FOR PERSONAL ITEMS? The …

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