Payroll

cpp

CPP Enhancements: Higher Contributions and Higher Benefits (part 1)

Leave a Comment / December 7, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Personal, Tax

In 2019, the government commenced a two-part enhancement to the Canada Pension Plan (CPP), with full implementation to be completed in 2025. Phase 1 occurred from 2019-2023; phase 2 will occur from 2024-2025. Overall, the changes will require larger contributions but also will provide larger benefits. Pre-CPP enhancement CPP contributions for employees and employers under …

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home savings

First Home Savings Account (FHSA): A New Investment Tool (part 3)

Leave a Comment / December 4, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Property, Tax

Please, see the first part of the article here and the second part of the article here Home buyers’ plan (HBP) In a May 15, 2023 French Technical Interpretation, CRA was asked whether an individual could withdraw $8,000 under the HBP and contribute the funds to a tax-free FHSA, knowing they would purchase a qualifying …

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property

First Home Savings Account (FHSA): A New Investment Tool (part 2)

Leave a Comment / November 27, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Property, Tax

Please read the beginning of the article here The maximum participation period for an FHSA ends at the earliest of: 15 years after opening an FHSA; the end of the year following the year of the individual’s 70th birthday; and the end of the year following the year when the individual first makes a qualifying …

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First Home Savings Account (FHSA): A New Investment Tool (part 1)

Leave a Comment / November 22, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Personal, Property, Tax

The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have notlived in a home that they or their spouse owned jointly or …

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Cryptocurrency Exchange Cessation: Recordkeeping

Leave a Comment / November 18, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Tax

A June 7, 2023 CryptoTaxLawyer.com article (Binance Bids Canada Bye-Bye! Canadian Tax Implications for Cryptocurrency Investors and Traders) reminded Canadians about the importance of maintaining an offline record of transactions as exchanges, such as Binance, shut down in Canada. On May 12, 2023, Binance announced that Canadian users will be required to close any open …

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Multigenerational Home Renovation Tax Credit: More Housing Support (part 2)

Leave a Comment / November 13, 2023 / Accounting, Bookkeeping, Calgary, Family, Financial Statements, Payroll, Property, Tax

You can find the first part of the article here  In a second March 6, 2023 Technical Interpretation, CRA was asked whether the construction of a separate, detached housing unit on the same parcel of land as a principal housing unit, such as a carriage house or laneway house, would be eligible. CRA noted that a qualifying renovation must enable the qualifying individual to reside …

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Disability Tax Credit (DTC): Electronic Applications (part 2)

Leave a Comment / November 4, 2023 / Accounting, Bookkeeping, Business, Calgary, Payroll, Personal, Tax

Please see the first part of the article here The reference number will remain on My Account until the medical certification (Part B) is completed. Representatives cannot currently complete the non-medical portion (Part A) through their Represent a Client account. To use this new option, the patient (person applying for the DTC) must register for …

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Disability Tax Credit (DTC): Electronic Applications (part 1)

Leave a Comment / October 30, 2023 / Accounting, Bookkeeping, Business, Calgary, Family, Financial Statements, Payroll, Personal, Tax

The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently, CRA updated their services so that …

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rent

Paying Rent to Non-Residents: Withholdings Required (part 1)

Leave a Comment / October 22, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Personal, Property, Tax

In a March 30, 2023 Tax Court of Canada case, the taxpayer was assessed for failing to withhold taxes on rent paid on Canadian real estate to a non-resident. Penalties and interest were also assessed. The information known to the taxpayer was limited to an Italian telephone number on the lease document (with a Canadian number), …

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Gifts Directed to Other Donees: Loss of Charitable Status (part 2)

Leave a Comment / October 16, 2023 / Accounting, Bookkeeping, Business, Calgary, Financial Statements, Payroll, Tax

Please see the first part of the article here If the charity’s disbursement to the municipality was not a qualifying disbursement, the charity could have its status revoked. A qualifying disbursement includes a gift to a qualified donee. A qualified donee includes a municipality in Canada that is registered by the Minister. It is a …

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