Personal Tax Accountant Toronto & Mississauga - GTA Accounting

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• A tax saving outlook for Canadian small
  businesses
• As a small business in Canada, there are many tax
  deductions that can be aimed at your small
  business spending, helping you minimize your tax
  burden and maximizer your business income.
• Take advantage of tax deductions
• Tax deductions help you reduce your tax bill, and
  to take advantage of them fully, you must know
  that they are. Here are a few tax deductions
  small business owners in Canada can claim
• Vehicle expenses Lease payment, insurance, toll
  charges, maintenance (oil), and gas.
• Capital property vehicles, computers, furniture,
  equipment, and computers
• Operating expenses rent, insurance, heating,
  office supplies, and electricity.
• Media advertising costs Canadian magazines,
  newspapers, in addition to Canadian market radio
  and T.V.
• Business management expenses annual licence
  fees, business taxes, membership dues for
  professional organizations, online marketing
  fees, mail and delivery costs, and
• professional consulting services.

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• Get Tax Credits
• The Canadian government has made available a host
  of tax credits aimed at specific sectors of the
  economy. Your small business could claim
  Investment Tax Credits (ITCs), here are a few
• Scientific Research and Experimental Development
  (15 of all qualifying expenditures)
• Mineral Exploration Tax Credit (15 of qualifying
  expenses)
• Apprenticeship Job Creation Tax Credit (up to
  2,000 per year and equal to 10 of the salary
  paid to an eligible apprentice for the first two
  years)
• Investment Tax Credit for Child Care Spaces (25
  of the cost of creating spaces with a maximum
  credit of 10,000 per space created)
• Atlantic Investment Tax Credit (10 of the value
  of purchase price of new buildings,
• machinery, and equipment used in farming,
  fishing, logging, manufacturing, and
  processing).
• Meet Deadlines
• Avoid stress, trouble, fines, and the CRA, file
  your taxes on time. For small businesses, your
  taxes are not due until June 15, and any amount
  owed must be paid by April 30th.
• Maintain Complete and Accurate Records

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CRA Tax audit procedure Tax audits are about
the last thing you happening to you, it is a
frightening experience and it can also be very
costly. CRA auditors will seek your books,
records, receipts, and bank account statement.
Questionnaires could be asked to be filled out,
and any declared information that is wrong
regardless if it was due to error or other
reasons, it will be used against the taxpayer.
Should that happen, one of our top CPAs at GTA
Accounting will be involved and help you through
the process should an auditor contact you. When
you get audited, first youll receive a notice
from CRA regarding their intention to audit. The
notice typically outlines the preliminary
information that is required from you with a
possibility for future requests asking for more
information. Typically speaking the beginning of
an audit is the best time to obtain legal
representation auditors are generally not very
reasonable and may not listen to your
explanations and reasonings for the filing the
returns the way you did. Our top CPAs here at
GTA Accounting will speak on your behalf and
begin the legal work necessary to remove any
issues relating to your tax return, especially if
you do not accept the outcome of an audit. In
this case, you have 90 days to appeal by filing a
notice of Objection, and as always one of our
top CPAs at GTA Accounting will be readily
available for any sort of assistance in filing
your income tax objection. In
Canada, there are over 350,000 tax audit and
review actions concocted annually by the Canada
Revenue Agency. Around 15,000 of these tax audits
focus on cash only businesses, also known as
the underground economy, and around 35,000 audits
are tax shelter audits. There are several
reasons for why the CRA might want to audit
you 1 Random selection 2 Third party tips 3
Comparison of information on returns to
information received from third-party sources 4
Past history of non-compliance
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• The Canadian Income Tax is based on
  self-assessment, the taxpayer is solely
  responsible for filing their own personal tax,
  and the CRA performs audits in order to maintain
  the integrity and functionality of the
  self-assessment tax system. Here are a few
  examples of issues that may arise in an audit
  that would cause a taxpayer to be reassessed by
  the end of an audit
• Overstated expenses
• Overstated deductions
• Overstated credits
• Underreported or unreported earnings
• Unreported offshore income
• Unreported offshore assets
• Credits, such as charitable donations not
  supported by receipts
• As such, it is imperative that you keep completed
  records detailing every expense or deductions
  claimed on your tax return. If the CRA has
  approached you with an impending income tax
  audit, do not hesitate to contact our tax
  accounting professionals in Toronto
  Mississauga. Call us at 1 [phone] and
  visit us at https//www.gtaaccounting.ca/

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• Tax implications for Canadians selling U.S.
  property
• There are a few things Canadians selling their
  U.S property should be aware of 1 The 15
  holding tax -
• As a Canadian or a non-resident of the U.S., you
  are subject to U.S. tax laws when selling your
• U.S. property. Regardless of the cost of your
  property, a 15 tax must be paid on the sale
  price payable under FIRPTA rules (Foreign
  Investment in Real Property Tax Act of 1980).
• Note The withholding tax paid by Canadians on
  the sale of property in the U.S. can be reduced
  by applying for a withholding certificate before
  transferring the property. You should apply under
  two conditions if you expect your U.S. tax
  liability to be less than 15 of the sale price
  and you must indicate what amount of tax that
  should be withheld by the propertys buyer
  instead of the full 15.
• If a certificate is filed before a transfer of
  property, withholding tax may be decreased
• 2 File a non-resident U.S. tax return A U.S.
  income tax return form 1040 must be filed with
  IRS reporting a selling price exceeding the
  original cost.
• 3 Long-Term Capital Gain Long-term capital
  gains receive favourable tax on properties owned
  for more than one year prior to the sale. The
  long-term capital gain is calculated based on
  your tax bracket. For example, you purchased
  property in 2010 for 50,000 and sold it 6 years
  later for 150,000, youll be taxed a long-term
  capital gains tax of 15.
• 4 Canadian Income Tax on the Sale of U.S.
  Property
• As a resident of Canada, you are liable to pay
  tax on your worldwide income including capital
  gains of U.S. real estate sold calculated in
  Canadian dollars.
• To avoid double taxation, a foreign tax credit
  can be claimed on the Canadian tax return on the
  capital gain realized on the sale of a U.S.
  property.

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Incorporating your Business in Canada and Tax
Advantages Incorporating your business may lead
to lower taxes depending on your situation and in
which province you operate. Once your business
generates more money than what is necessary for
living expenses, in this case, incorporating can
be a tax saver. However, incorporating your
business can be a bit costly and with it comes
plenty of additional paperwork. It is often not a
good idea incorporating when you start your
business, but once the business becomes
profitable, the benefits of incorporating can be
reaped. Furthermore, you have the option of
incorporating provincially or federally, your
choice depends completely on the intention of
your business and whether it'll operate in more
than one province. How Tax Savings Work In
general, corporate tax rates are lower than those
of personal ones. For these profits to be
reaped, the business must generate a substantial
profit. If one relies on the profit the company
earns to cover their personal living expenses,
this means your company must pay enough to live
and therefore you must pay personal income tax on
that amount, hence eliminating the advantages.
To put it simply, if you are earning more than
you need to live on, incorporeality can be
advantageous. Income Splitting and
Dividends Splitting your income with family
member employees can lead to significant tax
advantages beyond those available under reduced
tax rates for corporations. Hiring a spouse or a
child means that their income can be deducted as
an expense while the family member pays tax on
their own personal chime rates. In the event
where you cant hire faintly member for work, you
can make them shareholders and pay them
dividends, which are taxed at a reduced rate. The
corporate is accountable to pay taxes on this
money but generally, pending on the personal
income of your amity members and the province of
residence, there might be an overall tax
saving. When its time to sell your
business As a corporation, you can sell the
shares of your corporation to another person or
firm. This means that if your corporation is
holding real estate and you sell the shares of
your corporation to the potential buyer, then
the buyer can save on land transfer taxes. This
will make the deal sweeter for the buyer and he
is more likely to do business with you. For
professional Tax Accounting Professionals contact
us at 1 [phone] and visit us at
https//www.gtaaccounting.ca
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• Election of Quick Method of Accounting to
  calculate GST/HST for IT Consultants
• The Quick Method
• The quick method is a simple way for small
  businesses to calculate the tax to be remitted
  to the CRA for GST/HST purposes. With the quick
  method, you still collect the HST at the 13 on
  taxable supplies of goods and services but will
  only remit 8.8 to CRA. The rest of the HST will
  be income for you.
• Remittance Rate
• The ammonite to be remitted to the CRA is
  calculated by multiplying a single applicable
  rate with the number of taxable supplies
  (including GST/HST). The remittance rate depends
  on either one of the following
• If the taxpayer is in the service, retail or
  manufacturing business
• In which province the business has a permanent
  establishment
• In which province the supplies are services
  provided or supplies made
• The Quick Method can be used by small businesses
  with taxable sales of 400,000 or less. However,
  this method is limited, as such, accountants,
  lawyers, and charities are prohibited from using
  this method of accounting. Therefore, in order to
  elect the Quick Method, you must complete and
  send from GST74 - Election and Revocation of an
  Election to Use the Quick Method of Accounting,
  to the Canada Revenue Agency. This form can be
  accessed and downloaded from the CRA website.
• For your accounting needs, our CPAs here at GTA
  accounting will make themselves available for
  you when it comes to sorting help or assistance
  in regards this method of accounting, so please
  do not hesitate to contact us.