We understand that for business owners, it can be tough to see where business finances end and personal finances begin. That’s because we believe they are integrated.
The choices you make in your business will affect your personal finances, and your personal decisions affect your business. We review your personal and family finances, as well as your business finances to help you identify ways to minimize taxes and achieve your financial goals. We want you to optimize your personal strategies, and we believe that the best way to do that is to look at your finances from every angle.
KWB provides personal tax services to individuals who we do business year-end work for. We also provide personal tax services to individuals looking for a better experience.
We send you a checklist early in the year, outlining what you’ll have to provide in order for us to efficiently and accurately prepare your taxes. This helps you to prepare in advance, and ensures that you won’t be left questioning whether you have forgotten something.
Your personal tax returns will be completed in a timely, efficient manner. We use information that you give us throughout the year about your business, family, and financial goals, to help achieve optimal tax savings this year, and make recommendations for next year and beyond.
When you have collected all of your tax documentation, you can simply drop it off at our office. We will review your return with you to help you understand how we minimized your taxes this year, and to explain what you can do in future years to optimize your tax strategies.
Blog posts about Personal Tax Returns
Feb
17
2021
Best Practices for Submitting Documents Electronically
We are encouraging you to send us your personal tax information or corporate records electronically. This guide will assist you through the process while ensuring your data is secure and well managed.
File Types: We can accept pretty much any file types (PDF, jpeg, bmp, tiff, png, etc.)
Image Quality: 
Jan
14
2021
The CRA may owe you money
Most of us daydream about receiving a surprise notification that we have suddenly received some unexpected money
Although it may not qualify as a windfall, there is a chance that the CRA (Canada Revenue Agency) may owe you some money.
There is approximately $1 billion in uncashed refunds from the CRA in Canada. 
Sep
17
2020
Save Money with a Health Services Plan
Save Money with a Health Plan
How can you save $100’s and maybe $1,000’s in taxes in one simple step? Are you an employee of your own company and do you have significant medical expenses each year of $2,000 or more not covered by a health plan? Then creating a “Private Health Services Plan” (PHSP) as soon as possible could save you big dollars.
Aug
18
2020
How the Canada Revenue Agency (CRA) Contacts You
The CRA website was recently a victim of a cyber attack. In response, the CRA shut down its website and various portals to lower the security risks.
As of the August 18, 2020, the CRA has regained their online presence and are opening their portals one by one.
The CRA has stated that
Jul
14
2020
8 Tax Saving Tips
Here are 8 great tax saving tips:
Tax Savings Tip #1: Keep complete records
Be diligent about your record keeping to avoid lost receipts that can mean missing out on tax deductions. Keeping electronic copies of scanned receipts can help you stay organized on the go. KWB recommends using the Receipt Bank
May
4
2020
CPP Death Benefit and Survivor Payment
CPP death benefit
The CPP death benefit is a one-time, lump-sum payment to the estate of the deceased contributor.
The CPP death benefit can be paid to:
The Estate of the deceased person
The person who paid the funeral expenses
A surviving spouse or common law partner
A next of kin.
The Executor is the first
Apr
3
2020
KWB Summary of Relief Programs - Federal and Provincial - 3 April 2020
To our friends, clients, and business partners,
We hope this newsletter finds you well and healthy. The volume of information we’ve received from provincial and federal governments over the last few weeks has been significant and a bit of a moving target, so we’ve put together a summary of all the relief programs that
Apr
2
2020
The Canada Emergency Wage Subsidy - What It Means for Canadian Businesses – 2 April, 2020
To
help businesses keep and return workers to their payroll through the challenges
posed by the COVID-19 pandemic, the Prime Minister, Justin Trudeau, proposed
the new Canada Emergency Wage Subsidy. This would provide a 75-per-cent wage
subsidy to eligible employers for up to 12 weeks, retroactive to March 15,
2020.
This
wage subsidy aims
Mar
27
2020
Breaking News for Small - Medium Size Businesses - 27 March 2020
Ottawa hikes wage subsidy to 75% for small and medium-sized businesses
The federal government is hiking its wage subsidy for small and medium-sized businesses from 10 per cent to 75 per cent, a
move that business leaders have called for amid the coronavirus outbreak.
Prime Minister Justin Trudeau announced the payroll subsidy,
as well
Mar
26
2020
Document Deliveries and Meetings through COVID-19
Dear valued KWB clients and business partners,
Our office remains open and functional during this time, however, we no longer have reception coverage until further notice. Please take note of the following procedures that have been implemented:
1. Deliveries to our office
You may continue to deliver or drop-off your documents at our
Mar
26
2020
New Information from the Alberta Government – 25 March 2020
In addition, it is now mandatory for travellers returning
from outside of Canada to self-isolate. This legal requirement also applies to
close contacts of confirmed COVID-19 cases, as well as to any individual with
symptoms, such as a fever, cough, sore throat or runny nose.
“We must do everything we can to protect Albertans
Mar
25
2020
Support for entrepreneurs impacted by the coronavirus COVID-19
As announced by the Minister of Finance, BDC puts in place additional measures to provide relief for Canadian
entrepreneurs.
Effective
March 18, 2020, new relief measures for qualified businesses include:
Working capital loans of up to
$2 million with flexible repayment terms such as principal postponements
for qualifying businesses;Flexible repayment terms, such
Mar
24
2020
Support for Employers – New Supports Announced 23/03/2020
Corporate income tax changes
Corporate income tax balances and
instalment payments will be deferred from March 19 until August 31, 2020 to
increase employers’ access to cash so they can pay employees, address debts and
continue operations.
Education property tax deferral
Education
property tax rates will be frozen at last year’s level – reversing
Mar
23
2020
Frequently Asked Questions – Temporary Wage Subsidy for Employers
1. What is the Temporary Wage Subsidy
for Employers?
The
Temporary Wage Subsidy for Employers is a three-month measure that will allow
eligible employers to reduce the amount of payroll deductions required to be
remitted to the Canada Revenue Agency (CRA).
2. Which employers are eligible?
You are an
eligible employer if you:
are
Mar
23
2020
Who qualifies for EI?
Whether you qualify for EI will still depend on your specific situation, such as regional rate of employment, and the number of hours worked in the last 52 weeks.
The government recommends people apply as soon as possible to find out if they qualify; waiting more than four weeks after your last day
Mar
20
2020
Support for Albertans – COVID-19
The Alberta
government will provide immediate financial relief to Alberta’s families and
vulnerable populations.
Albertans
should be focused on their health and not worry about whether they can pay
their bills so we have put a number of options in place for those struggling
financially.
Emergency isolation support
This will be
a temporary program
Mar
20
2020
Support for Employers - Alberta - COVID-19
The Alberta government will provide immediate funding and supportive measures to support local businesses, employers and employees.
Support for employers
Corporate income tax changes
Corporate income tax balances and
instalment payments will be deferred from March 19 until August 31, 2020 to
increase employers’ access to cash so they can pay employees, address debts
Mar
20
2020
Tax News and Changes – COVID-19
The Prime Minister and the Minister of Finance announced on
March 18th an economic relief package to begin addressing the
economic impacts of the COVID-19 pandemic. Part of the economic relief package includes
tax relief for individuals and businesses.
Filing Deadline Extensions
The deadline for filing personal income tax returns will be
extended to
Mar
20
2020
Resources for Canadian Businesses – COVID-19
Small and medium-sized businesses are the backbone of the
Canadian economy. During this extraordinary time, the Government of Canada is
taking strong action to help Canadian businesses as COVID-19 is affecting them,
their employees and their families.
The Government and public health officials are urging all
Canadians to:
stay home unless it is absolutely
Mar
19
2020
To our valued clients and business partners – a KWB announcement
KWB Chartered Professional Accountants has a proactive plan for
continued operation in this new environment. You and our team are our
first priority. We want to inform you of what changes we have made, so we
can continue to complete the work you need us to do, while protecting both you
and
Feb
10
2020
Tax Changes for 2020
The Canadian Revenue Agency recently made some tax changes that may affect you and your business in 2020.
ANNUAL INFLATION ADJUSTMENT
Each year, most (but not all) income tax and benefit amounts
are indexed to inflation. In early December, the Canada Revenue Agency
announced that the inflation rate that will be used to index
Jan
14
2020
5 Things to Consider When Filing Your Tax Return
Here’s a
list of some things to avoid when filing your tax return.
Follow these tips; they could save you time and money!
Filing an income tax and benefit return even if you have no income
If you have no income to report, you should still file a return. You may be eligible for
Dec
3
2019
Year End Tax Tips
Review our year end tax tips to discover a number of perfectly valid actions you may still be able to take before the end of the year to cut your taxes and to optimize your wealth management planning.
As tax planning specialists, we can help you decide exactly what to do, when to do it
Nov
12
2019
Travel Expenses
Travel expenses include food, beverage, lodging and transportation (such as airplane, train, bus, etc.) expenses but not motor vehicle expenses.
You can deduct travelling expenses on your personal tax return as long as you meet all of the following conditions:
You were normally required to work away from your employer's place of
Jul
9
2019
Electing out of CPP payments
Did you know that if you are receiving CPP benefits, are still working and are between the ages of 65 and 70, you can elect to stop making CPP contributions.
Contributing to the Canada Pension Plan (CPP) is mandatory for working Canadians between the ages of 18 and 64, but optional after age 65.
This
Jun
18
2019
Principal Residence Exemption
If you have sold your home and it is your principal residence then you should be able to use the principal residence exemption to reduce or eliminate any capital gain for income tax purposes on the sale of the property.
CRA states that a principal residence can be a house, cottage, condominium, apartment, trailer, mobile
Jun
4
2019
CPP Rate
Beginning in 2019, the CPP rate will be gradually enhanced.
This means you will receive higher benefits in exchange for making higher contributions. The Canada Pension Plan (CPP) enhancement will be rolled out in two phases.
The 2018 CPP rate was 4.95% of your salary to a maximum yearly CPP contribution of $2,564
May
21
2019
Living Out Allowance
In certain situations, a company can pay and deduct a living out allowance and the employee does not have to report the allowance in their income.
In order for this to apply, the allowance needs to be reasonable. Additional criteria must be met as stated below for employees at a special work site and
May
14
2019
Registered Education Savings Plan (RESP)
An RESP is an education savings account that is registered with the Government of Canada that helps you save for a child’s or grandchild's post-secondary education.
With an RESP, you may be able to receive other saving incentives, such as the:
Canada Learning Bond
Basic and Additional Canada Education Savings Grant
There are two different
May
7
2019
Spousal Loan - Tax Savings Opportunity
If you are in a much higher income tax bracket then your spouse and have investments outside of an RRSP or TFSA then a spousal loan could reduce your taxes.
Money that is earned directly by you through employment or investing is considered yours and can’t just be given to your spouse to invest. 
Apr
30
2019
Dividends
What’s the difference between eligible and non-eligible dividends? What are the implications to you?
Dividends are payments made to shareholders to allocate the earnings of a corporation. There are two types of taxable dividends that a corporation can issue, non-eligible and eligible.
non-eligible dividends are taxed at approximately 10% more than an
Apr
16
2019
Supporting Documents for a Charitable Donation
When you make a charitable donation, one of the key benefits you receive is the donation tax credit on your tax return.
In order to be able to claim a charitable donation and get a credit, Canada Revenue Agency (CRA) requires that individuals keep supporting documents and proof of payment (i.e. cancelled cheques, pledge
Apr
9
2019
Medical Expenses including Attendant Care
A taxpayer can claim medical expenses paid for themselves as well as for their spouse, common-law partner and dependents. A dependent can include;
the taxpayer or their spouse/common law partner's child or grandchild or
the taxpayer of their spouse/common law partner's parent, grandparent, sibling, uncle, aunt, niece or nephew whom lived in Canada
Mar
28
2019
Deductible medical costs if you qualify for a disability tax credit
A taxpayer can claim deductible medical costs paid for themselves as well as for their spouse, common-law partner and dependents.
A dependent can include;
the taxpayer or their spouse/common law partner's child or grandchild or
the taxpayer of their spouse/common law partner's parent, grandparent, sibling, uncle, aunt, niece or nephew whom lived in Canada at
Mar
19
2019
Applying for a trust account number or asking for a clearance certificate
Asking for a clearance certificate
A clearance certificate certifies that all amounts for which a deceased taxpayer is liable to Canada Revenue Agency for have been paid. If a clearance certificate is not obtained upon a taxpayer’s death, as the legal representative, you can be liable for any amount the deceased owes. A
Mar
12
2019
The Enlightened Investor-Retirement Income
Eventually investors move from the “saving-years” to the “drawing-years”, when they want to start drawing retirement income from their portfolios.
This can be confusing. For many the natural inclination is to liquidate their diversified portfolio in favor of income-producing stocks or bonds. However, the idea that retired individuals should load up on dividend-paying common shares
Feb
26
2019
Retirement Planning Alternatives
We have all been told to plan for our retirement. Yet, have you ever wondered why you need to consider the different retirement planning alternatives?
Perhaps you have a plan, most people do, but is it the right plan? In the following example, it is clear how advanced planning can make a huge difference
Feb
12
2019
Direct Beneficiary Designation - RRSP or RRIF
If you are considering a direct beneficiary designation for either a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF), you should be aware of some negative consequences that can occur.
A direct beneficiary designation can result in unintended tax consequences to the estate, the inequitable treatment of heirs or the distribution
Feb
5
2019
Structuring the legal ownership of your home
What's the best strategy for structuring the legal ownership of your home?
The answer is...it depends.
Are you asking for tax planning purposes or for estate planning purposes?
Often you may be advised that it's important for you to have the title of your home shared with somebody else so that if something were
Jan
29
2019
Unreported T-slip income
Regardless of the reason, if you have unreported T-slip income of $500 or more from any T-slips in your current year tax return, don't wait for CRA to catch it.
If you have unreported t-slip income in your current year return and also unreported t-slip income in any of the three years prior, you are subject to a
Jan
15
2019
Capital Dividend Account
The capital dividend account (CDA) is used to track the amounts that can be paid out to shareholders, tax free.
How is the capital dividend account balance calculated?
Capital gains and losses – The balance increases by 50% of any capital gains your company incurs, and decreases by 50% of any capital losses your company
Jan
8
2019
US Tax Filing
Are you a US citizen? Do you spend more than 120 days per year in the US? If so you may be required to file a US personal tax return.
Nov
6
2018
Audit Shield
Being audited is a difficult experience that can be both scary and costly.
When being audited the professional and legal fees can amount to thousands of dollars quickly, so we found a way for you to insure against those unexpected professional fees by offering an audit insurance product called Audit Shield.
With Audit Shield, claims
Sep
25
2018
Are RRSP’s the right investment choice?
RRSPs are one of the few last minute and flexible deductions available to people with employment income from a T4.
However, if you are an owner of the business and have some control over your salary, you should consider some of the other alternatives first. Even if you can’t control your own salary you should
Aug
7
2018
Form T1135 Foreign Income
Form T1135 Foreign Income Verification Statement must be filed if you, your corporation, trust or partnership, owned or held foreign property with a cost amount of more than $100,000 at any time in the year even if some or all of the property was sold before the year of the year.
The form is
Jun
26
2018
TFSA
If one of your New Year’s resolutions was to save more money, then the Tax-Free Savings Account (TFSA) may be a good option for you to use. Learn more about the TFSA rules and limits.
Jun
19
2018
Impact of late filing your corporate tax return
If you are late filing your corporate tax return by more than three years, any overpayment is considered statute barred under the Canadian Income Tax Act (Section 164(1)).
This means that the Canada Revenue Agency (CRA) will not issue the refund to the corporation. In addition, the corporation cannot apply for tax payer relief to
Jun
12
2018
Resident or Non-resident in Canada
Under the Canadian income tax system, an individual's liability for income tax is based on his or her status as a resident or a non-resident of Canada.
An individual who is resident in Canada during a tax year is subject to Canadian income tax on his or her worldwide income from all sources. Generally, a
May
8
2018
CRA Tax Myths
Will CRA email me for information? Can I refuse to pay income taxes if I want to? Can I avoid paying GST? Do I have to pay taxes on lottery winnings? These myths are answered.
Apr
10
2018
Tax Filing Deadline
What is your tax filing deadline? How much time do you have to file and what are the costs of not filing or of filing late?
Personal Tax Filing Deadline
Personal taxes are due on April 30 unless that date falls on a Saturday, Sunday or a holiday in which case the return is due on
Apr
3
2018
Changes to the Principal Residence Exemption
The Canada Revenue Agency (CRA) made a major change to the Principal Residence Exemption that affected Canadians when filing their 2016 tax returns. Regardless of whether the sale is exempt or not, individuals are now be required to report the sale of their principal residence on their personal tax return.
Under the Principal Residence Exemption
Mar
16
2018
Disability Tax Credit
You may qualify for the disability tax credit and not even realize it. If so, you could collect as much as $2,500 a year in tax savings!!!
You do not need to be in a wheelchair to be eligible for the disability tax credit. If someone isn't able to walk the length of
Feb
20
2018
2018 Tax Rates & Limits
Each year various tax rates, contribution limits, benefit amounts and deduction rates change. The following is a quick reference guide for 2018.
Personal income tax rates and brackets:
Federal
Taxable income Rate
$0 to $46,605 15%
$46,606 to $93,208 20.5%
$93,209 to $144,489 26%
$144,490 to $205
Jan
16
2018
Advance Income Tax Rulings
Advance Income Tax Rulings are written statements providing assurance on the income tax treatment of a specific proposed transaction or transactions that you might be contemplating.
Subject to any disclaimer or qualification stated in the ruling, the ruling is considered binding with respect to the specific taxpayer making the request and the specific proposed transaction
Jan
2
2018
CRA Audit Approaches
If you have been selected for a CRA audit, you may be wondering what kind of tests they will perform.
While this largely depends on whether the CRA auditor believes your records are accurate and reliable, they are also required to perform a number of indirect tests to verify that what you have earned has
Dec
19
2017
When to Apply for CPP Benefits
The amount of CPP benefits that you are eligible to receive depends on how long you earned employment income, and how much you earned in those years.
You can visit the My Service Canada website to see how much you have paid in to CPP over your working years. This information is used to calculate
Dec
12
2017
Allowable Business Investment Loss
An allowable business investment loss can arise in many ways:
1) Through a disposition of shares in a small business corporation
2) Through a disposition of debt owed to you by a small business corporation
3) When amounts that you have loaned to a small business corporation become uncollectible, or the corporation has gone bankrupt
Nov
21
2017
CRA Service Standards
CRA service standards have been set by the CRA to give you an idea how long it should take to receive a response to your submission.
The CRA service standards for 2017 & 2018 have been released and the turnaround times that Canadians can expect are as follows:
Document or Service
Turnaround Time
Aug
8
2017
How to Avoid a CRA Audit
If you want to figure out how to avoid a CRA audit there are a number of things you should know.
Probably one of your worst nightmares is the dreaded audit letter from the Canada Revenue Agency (CRA) informing you that you're going to be audited and CRA will send out approximately 30,000 such
Jul
25
2017
CRA Audit
Many companies may experience a Canada Revenue Agency (CRA) audit. Here’s what you need to know:
Types of Audits:
Not all CRA audits are the same! In some cases, they may only want to see records pertaining to one area or it could be a full audit. Here are a few details regarding the different
Jun
13
2017
Gluten Free Food
If you have celiac disease you are able to claim the incremental costs of the gluten free food as a medical expense. In order to claim the expense you need to track the gluten free food during the year and keep the receipts to show that the expenses were incurred.
An app called celitax.ca
May
30
2017
RRSP Contribution Room
RRSP’s can be a simple concept but they are also governed by some complex rules. Learn more about how your annual contribution limits are calculated and what to do if you have over contributed.
May
9
2017
Tax Deductions
To make sure you are claiming all the tax deductions that you should be, read about the 7 most commonly overlooked tax deductions.
May
2
2017
Registered Education Savings Plan (RESP)
With summer over and the kids back at school, many are looking at accessing their RESPs to cover the costs of post-secondary education. Here are some things to consider.
Mar
21
2017
CRA Fraud Protection
Canada Revenue Agency and police again warned taxpayers of randomly targeted fraudulent telephone calls and e-mails that are being sent out as CRA fraud. These phone calls and e-mails are not from the CRA.
Annually the number of CRA fraud scams rise near the April 30th tax deadline.
The phone call scams are imposters trying
Mar
14
2017
Statute Barred Period
In general, CRA can reassess tax returns for individuals, trusts and Canadian Controlled Private Corporations (CCPC’s) within 3 years from the original Notice of Assessment date. After that, the returns enter a statute barred period.
The typical statute barred period starts 3 years after the Notice of Assessment is issued
A Notice of Assessment is the
Mar
1
2017
Child Rearing Provision
If you left the work force or reduced your working hours to be the primary caregiver for your children, it will likely be to your benefit to apply for the CPP child rearing provision when applying for CPP benefits.
To apply for the CPP child rearing provision you would complete section 11A in the application
Feb
7
2017
Taxpayer Bill of Rights
There are 16 rights set out in the Taxpayer Bill of Rights that you should expect when dealing with the CRA. These apply regardless of whether you are an individual or own a business. Their goal is to increase transparency, accountability, and to improve the quality of service they provide.
You have a right to:
Jan
24
2017
Gross Negligence Penalty
As Canadians get busy filing their taxes, the Canada Revenue Agency (CRA) reminds everyone to be cautious of fraudulent tax filing. The CRA will audit, reassess and can apply a gross negligence penalty equal to 50% of the additional tax payable if it can show that a taxpayer knowingly, or under circumstances amounting to gross
Dec
6
2016
CRA Statistics
Have you ever wondered about CRA statistics like how many tax returns get filed each year or how much Canadians pay in taxes each year? Earlier this year, CRA released their 2014-2015 Annual Report to Parliament which included the following CRA statistics:
28 million tax returns were filed for the 2014 year. Approximately 1% of
Nov
29
2016
OAS Benefits
What is the value of deferring my OAS benefits, sometimes also called OAS pension, to a future year?
There are several reasons why you might want to defer your OAS benefits, such as:
1) Based on current and future sources of income you may be able to keep thousands more.
2) You’re planning to work past 65
Nov
15
2016
Top 4 Financial Tips for the New Parent
Here are our top 4 financial tips for the new parent:
Apply for a Social Insurance Number (SIN) for your child:
It’s a good idea for you to apply for a Social Insurance Number for your child as soon as they are born. This way, you will not be left scrambling to obtain one when your
Nov
9
2016
Leasehold Improvements To Your Home Office
Have you made some renovations or leasehold improvements to your home office? You should be claiming any “repairs” in the year that they occur, but you have some options when it comes to claiming the amortization from leasehold improvements to your home office.
However be aware that this option may mean losing your homes
Oct
25
2016
T1 Adjustment
How long do you have to file a T1 adjustment?
If you find yourself in a situation where you have filed your personal tax return and then realize that you need to make a change, there are some steps you need to follow.
First, you need to wait until the notice of assessment on your
Sep
20
2016
New Home Rebate
Buying or building a new home? Did you know that if you purchase a new home or have substantially renovated your own, you can claim a rebate on the GST or HST you paid through CRA’s new home rebate.
What qualifies?
Your home must meet the following conditions:
Must be you or your relation’s primary
Sep
6
2016
Home Buyers Plan
The Home Buyers Plan (HBP) is a program that allows you to withdraw up to $25,000, per person from each of your RRSP accounts in a calendar year to buy, or build, a qualifying home.
To be eligible for the Home Buyers Plan, the following must be met:
You must be considered a first-time
Aug
30
2016
Graduated Rate Estates – New Rules for 2016
Starting for 2016 taxation years, inter vivos trusts, trusts created by will and certain estates will be subject to the top taxation rate. There are two exceptions to this change: graduated rate estates and qualified disability trusts.
Graduated tax rates will still apply to these types of estates and trusts.
Income earned and retained in
Aug
23
2016
Top 7 Overlooked Tax Deductions
Are you paying too much in taxes? Are you getting all the tax deductions available for your business?
An effective way to minimize your company’s tax expense, in addition to good planning, is to ensure the company is claiming all of the expenses legitimately allowed under the tax act. Take a look and see if any
May
24
2016
CRA Letter Campaign
Every year CRA conducts reviews and audits to sample and educate tax payers on tax compliance, and 2016 will be no different.
CRA estimates that approximately 30,000 letters will be sent out across Canada this year. These letters will give you information about certain claims you have made on one or more of your
May
11
2016
The Enlightened Investor: A New Trustee Act for Alberta
Provincial legislation is periodically updated. In Alberta, a revised Wills and Succession Act came into effect in 2012, an updated Estate Administration Act was passed in 2015 and now an initiative is underway to co-ordinate the Trustee legislation across Canada.
The Alberta Trustee Act is the provincial legislation governing the administration of trusts. A trust
Apr
26
2016
Estate Planning Gifting Strategy
An estate planning gifting strategy is basically when you start to give away some of your assets prior to death in order to optimize taxes within the family.
Usually, an estate planning gifting strategy refers to how we will distribute our assets when we die. But you might be overlooking significant tax savings by not
Apr
19
2016
Tax Myths
Here are some common myths about our personal tax system:
Myth: The CRA completely agrees with the information you submitted in your return if it sends you back a Notice of Assessment that agrees to what you filed.
A Notice of Assessment is just the result of a quick assessment that will have fixed any
Mar
29
2016
HOME ACCESSIBILITY TAX CREDIT (HATC)
The 2015 federal budget announced the introduction of a new Home Accessibility Tax Credit (HATC), beginning in 2016.
The HATC is a non-refundable tax credit for qualifying expenses incurred for work performed or goods acquired in respect of a qualifying renovation of an eligible dwelling of a qualifying individual. A qualifying individual and eligible individuals
Mar
22
2016
CRA Online Mail
Tired of waiting for snail mail? The Canada Revenue Agency (CRA) now allows you to receive some of their correspondence electronically through their My Account service.
What correspondence does this apply to?
Notices of Assessment (issued after February 9, 2015)
Notices of Reassessment (issued after February 9, 2015)
Tax Free Savings Account letters (issued after
Feb
9
2016
Moving expenses
If you are moving and are the owner of your own business you should consider deducting the expenses in your company rather than on your personal tax return.
If you do not have that option, then the tax rules provide that if you have moved to be at least 40 km closer to your place
Jan
21
2016
Charitable Giving
If charitable giving is something that you are interested in and you want to see the tax benefits obtained recently by one of our clients, read on for more information.
Dec
15
2015
The Enlightened Investor:Calculating the Cost Base of a Security Held in Multiple Taxable Accounts
Congratulations! You just sold and realized a profit on that promising investment (stock, mutual fund, ETF etc.). When you’re done planning how to spend your windfall you might also consider how much tax you owe on that gain. Unless the sale occurred within a non-taxable RSP or TSFA.
Normally, this is fairly straightforward. You
Dec
8
2015
Tax Instalments
You may not be aware that you or your business are required to remit quarterly or monthly tax instalments to CRA. And it is likely that if the instalments are not made, you will be charged interest and penalties
Goods and services tax instalments
You are required to pay GST instalments if your net
Nov
17
2015
Payroll Related ChangesThat May Come Into Effect With The New Federal Government
On October, 19, 2015, Canadians voted in new Liberal party Prime Minister, Justin Trudeau.
During the course of the election campaign, the party announced they would make certain changes related to income tax rate calculations. Although it is unclear when these changes will be enacted, they could be introduced soon after the new government takes
Oct
6
2015
Deciding when it’s time to start taking your CPP retirement benefits
You can start receiving CPP pension benefits when you reach age 65 (the month after your 65th birthday) which will entitle you to a full CPP benefit depending on how much and how long you have contributed to the CPP.
However, you have the following choices:
Take a reduced CPP retirement pension as early as
Sep
29
2015
The Enlightened Investor - Moving Small LIRA’s to Your RSP
When you have a job transition, you may transfer your pension plan savings to a locked-in-retirement account (LIRA).
LIRA’s are similar to Retirement Savings Plans (RSP’s) but with more restrictions. Adding another investment account will also add extra administration to managing your retirement savings.
Alberta pension legislation allows people age 50 or older to transfer
Sep
1
2015
Alberta Personal Income Tax Changes
On June 30, 2015, the Alberta government passed Bill 2, An Act to Restore Fairness to Public Revenues.
The bill has created a progressive personal income tax rate structure for higher income earners. Effective for 2015 and subsequent tax years, four new tax brackets and rates will be introduced:
Taxable income of $125,000 to
Jul
23
2015
Change in use of property from capital to inventory or vice versa.
There are no immediate repercussions for the change in business use of property from capital to inventory. The differences arise upon sale of the real estate.
There is no provision in the Income Tax Act which describes the circumstances in which gains from the sale of real estate are to be determined as being either
Jun
16
2015
Tuition and Education Amounts
As a student, you may be wondering what deductions you can make on your tax return. Can you claim the cost of textbooks? Can you transfer your credits to someone else?
What deductions can I claim?
There are three credits available: tuition, education, and textbook amounts. These are non-refundable tax credits that can be
Jun
9
2015
The Enlightened Investor-Deadline for the $500 Alberta Centennial Education Savings Grant (ACES)
If you have a child that is 10 years old or younger (born in Alberta between January 1, 2005 and March 31, 2015) they are eligible for a one-time $500 grant from the provincial government. However, you only have until July 31, 2015 to submit the form and apply for this grant before it ends
Apr
23
2015
CRA Direct Deposit
You may have been asked to provide your bank account information to CRA so that any refunds owed to you can be directly deposited into your account.
However, if you are concerned that CRA now has access to your account and could access your funds you can stop worrying. CRA has stated that if money
Apr
9
2015
Cost of Being Found to be a Personal Services Business (PSB)
We often hear about individuals who decide to incorporate while working as an employee for a business. But is it really beneficial to do so?
Let’s look at an example. Joe works as an employee and earns employment income (a T4 slip) in Alberta. On July 1, he incorporates. Although he has incorporated, he continues
Mar
26
2015
The Enlightened Investor: Is Your Portfolio Leaking Tax?
It may be obvious to state that an investor only keeps the after-tax return. It is less obvious how to minimize the tax leakage from your portfolio.
A good starting point is to identify the two primary causes of tax; portfolio turnover and an inefficient portfolio structure.
Taxes resulting from portfolio turnover can cost you
Feb
3
2015
Child Related Benefits, Expenses and Deductions
There’s great news for 2015 for Canadians with children. Stephen Harper has announced a “child care benefit boost” – which includes an increase to, or return of, the monthly Universal Child Care Benefit cheques and an increase to the amount taxpayers can deduct for child care expenses and the child fitness credit.
Changes to
Nov
12
2014
The "Family Tax Cut" credit
Prime Minister Stephen Harper and Finance Minister Joe Oliver recently announced a “Family Tax Cut” credit which allows certain Canadian families to reduce their overall federal income tax. This relief will be available starting in 2014.
The new measure would allow a higher income spouse to shift a portion of their income to a lower
Oct
28
2014
Child Fitness Tax Credit
The Conservative government has announced some changes to the children’s fitness tax credit which will begin taking effect for the 2014 Income Tax year:
1) For the 2014 income tax year, the fitness tax credit is increasing from $500 to $1,000. This credit is non-refundable. This means that parents whose income is too
Sep
9
2014
CRA My Account
Did you know that Canada Revenue Agency has an online service called My Account which provides you with secure access to your personal or business income tax information?
This online service is available 21 hours a day. (Closed from 1:00 AM to 4:00 AM)
The following provides details on the information available through My Account
Jul
22
2014
Family Caregiver Tax Credit
For 2014, if you have a dependent that you claim under one of the following:
Spousal amount (line 303)
Equivalent to spouse amount (line 305)
The child amount (line 367)
The caregiver amount (line 315)
The infirm dependant (line 306)
And that person is defined as infirmed with an impairment in physical or mental functions
May
26
2014
Heartbleed & CRA’s Deadline For 2013
As you may have heard, Canada Revenue Agency (CRA) extended the 2013 personal tax return deadline to May 5th, 2014.
This was due to a security issue, known as the Heartbleed bug vulnerability. This vulnerability affected how usernames and passwords were encrypted when logging into “secure” websites. Thus, allowing hackers the potential to steal private
Apr
15
2014
2014 Tax Filing Deadline
We would like to remind our clients that for the majority of Canadians, your personal income tax returns normally need to be filed by April 30.
If you haven’t already brought us the information we need to prepare your return, we would ask you to do so shortly.
CRA has extended the filing and payment
Mar
16
2013
2013 Tax Filing Deadlines
Well, it looks like spring time may finally be here and tax time is certainly upon us as well. Find out what the important personal tax deadlines are.
Nov
3
2012
Is it too late to reduce your 2012 taxes and optimize your investments?
Is it too late to reduce your 2012 taxes and optimize your investments? Perhaps not—if you contact KWB right away!
May
4
2012
The Candian Pension Plan (CPP)
The Canadian Pension Plan (CPP) rules are changing, and, unless you are currently collecting on your CPP and are over the age of 65, you need to pay attention.
Apr
25
2012
Children's Arts and Fitness Tax Credits
Two separate tax credits now exist that are specifically focused on providing relief for families with children in various activities. And, with these credits in place the tax relief provided to parents is now better than ever.