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:
Neno Vukosa Professional Corporation Blog
Neno Vukosa Professional Corporation is pleased to provide a variety of resources on accounting, bookkeeping taxation, and other related subjects that we hope will be helpful to both individuals and businesses.
If you have any questions, simply contact us by email or call 416 347-3993 or toll free 1-844-674-7656. We will be happy to meet with you for a free, no-obligation consultation.Disclaimer:
The content provided in this blog is for general informational purposes only and is not intended as professional accounting, tax, or financial advice. While efforts are made to ensure the accuracy and timeliness of the content, errors or omissions may occur. The content does not constitute a client-advisor relationship. Readers should consult with a Chartered Professional Accountants or other financial professional for advice tailored to their specific needs. We are not liable for any actions one might take based on the information provided in this blog.
You Might be a Personal Services Business (PSB)
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:
Advantages and Disadvantages to Incorporating
Deciding whether a sole proprietor should incorporate in Canada depends on various factors, including tax considerations, liability protection, business growth plans, and administrative responsibilities. Here are some key points to help make that decision:
The Balance Sheet for Business
An up-to-date business balance sheet is a critical financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and shareholders' equity. Here are several scenarios where having an up-to-date balance sheet is particularly beneficial:
What is the easiest accounting procedure in Canadafor a small business?
For small businesses in Canada, simplicity and efficiency are key when choosing an accounting procedure.
Income Tax & Selling Goods Online
In Canada, income from selling goods on eBay, or similar platforms such as Kijiji, Etsy, or Amazon, can be taxable, depending on the nature and frequency of the sales. Here are the key factors to consider:
Canadian Income Tax Installment Requirements
Tax instalments are payments you make throughout the year to cover the taxes you normally pay in one lump sum on April 30th of the following year. You pay these instalments during the year while you are earning the income, similar to how an employer deducts tax directly from each pay period.
Bookkeeper vs. Accountant - What Do I Need?
Bookkeepers and accountants may overlap in their tasks, yet they possess distinct skill sets. Here's what you need to know:
Are There Tax Benefits for Couples in Canada?
Are There Tax Benefits for Couples in Canada?
Curious about the tax advantages that come with getting married or living in a common law relationship? In Canada, there are indeed significant tax perks for couples. The following will begin to outline them.
Filing Your Personal Tax Return Benefits - Part 3
Filing your personal Canadian income tax return can also help you qualify for various government benefits. Here are some examples:
Filing Your Personal Tax Return Benefits - Part 2
here are five more benefits of filing your personal Canadian income tax return:
Filing Your Personal Tax Return Benefits - Part 1
Filing your personal Canadian income tax return offers several benefits, including:
April 30th is Deadline to File a Personal Tax Return
The deadline for filing 2023 tax returns and payments is Tuesday, April 30, 2024. Typically, personal income tax returns, excluding those with self-employment income, are due by April 30th, along with any outstanding payments. Late filings or payments may incur penalties and interest charges.
New T3 Requirements for Joint Accounts
Should you have established an in-trust-for (ITF) account for your minor child or hold specific assets jointly, you, and/or they, may now fall under the purview of recently implemented trust reporting regulations, effective for taxation years ending after December 30th. These regulations might necessitate the filing of a T3 Trust Income Tax and Information Return within 90 days of the year-end, irrespective of whether there's any income or activity to report. Given that trusts typically have a calendar year-end, the first tax return for 2023 would be due by April 2, 2024 (as March 30 falls on a Saturday, and April 1 is Easter Monday).
What's Better For Savings, a TFSA or an RRSP?
The choice between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) depends on various factors, including your financial goals, current income, and retirement plans. Here are some key considerations for both:
Tax Refunds for a College Student in Canada
How to maximize tax refunds as a college student in Canada
Maximizing your tax refunds as a college student in Canada involves understanding the tax credits and deductions available to you and ensuring you claim them correctly on your tax return. Here are some tips to help you maximize your tax refunds:
Canadian Tax Changes for 2024
We have compiled a list of Tax Changes and adjustments that are anticipated to affect most Canadians in 2024.
The details here offer estimates for elevated payroll taxes, mandatory contributions to the Canada Pension Plan and Employment Insurance. It also covers increases in carbon and alcohol taxes plus the effect of the possible Digital Services Tax.
Year-End Preparations for Canada's Income Tax
As tax laws and regulations change, it's crucial to consult with a tax professional or check the latest resources for the most up-to-date information.
Here are some common steps individuals may take at the end of the tax year:
Christmas Scams and How to Stay Safe
During the holiday season, scammers often take advantage of the festive atmosphere and people's increased online activities. Christmas scams can take various forms, but some common tactics include:
Tips on How to Avoid Online Scams
Avoiding online scams in Canada (or anywhere else) involves being vigilant, informed, and taking proactive measures to protect your personal and financial information. Here are some tips to help you avoid online scams:
Do you do your own taxes?
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.
Tax Planning - Start Now to Create Wealth
Engaging in tax planning from the beginning of the year means that you can enjoy the benefits at tax time.
Tax planning is the broad concept of tax efficiency. Tax efficiency considers the larger financial picture incorporating individual age, goals, tolerance for risk and investment timeline. By incorporating tax planning, you uphold long-term wealth creation and protect your capital.
Business People Need to Monitor These Indicators
Maintaining good financial management is crucial to a firm’s survival. Timely and informed decisions are much easier when responding to changing conditions in today’s business world.