Huron Partners LLP, Chartered Professional Accountants join global network, MGI Worldwide

by admin in Uncategorized

Ontario based assurance, tax and consulting firm Huron Partners LLP, Chartered Professional Accountants is a new member firm of MGI Worldwide, a Top 20 ranked international network of independent audit, tax, accounting and consulting firms with some 5,000 professionals in over 300 locations around the world and also 12th the largest in the Middle East. This change means that the firm can now provide a level of international expertise normally only found in very large accounting firms but delivered with the same personal service and high level of partner involvement of a smaller firm. This change also demonstrates our firm’s commitment to providing a quality service for our clients. Huron Partners LLP, Chartered Professional Accountants can now offer clients a new world of opportunity. Here are some of the benefits: Support from a worldwide team – more than 5,000 accounting professionals Access to international advice – at the end of the phone for tax, corporate and financial matters Potential to explore new opportunities – within North America and Worldwide Ability to speak to a specialist – from a pool of experts around the world Huron Partners LLP, Chartered Professional Accountants, is an assurance, tax and consulting firm. For more information […]

Tax Planning for 2016 – Huron Partners LLP, Chartered Professional Accountants

by admin in Uncategorized

The election of a new government in Ottawa is often accompanied by changes to the way income is taxed. The last federal election was no exception. The changes announced in the March 2016 budget that will impact many taxpayers are as follows: Family Tax Cut Spousal income splitting was eliminated. In the past, one spouse or common-law partner could transfer as much as $50,000 of taxable income to the other to save up to $2,000 in income taxes. This option will no longer be available. Child Tax Benefit Taxpayers with children are familiar with the Canada Child Benefit (CCB) tax-free monthly payment and the taxable Universal Child Care Benefit (UCCB) that were designed to assist parents with the cost of raising children under the age of 18. The new budget proposes that the CCB will provide as much as $6,400 per child under the age of six and $5,400 for children from six to 17. As can be expected, the benefits will not apply equally to all income categories. Levels of payout will be adjusted for those whose family income is between $30,000 and $65,000 and those who earn in excess of $65,000. If family income exceeds $200,000, there will […]

Save faster with a Tax Free Savings Account

by admin in Uncategorized

In 2009, the federal government introduced a savings vehicle called the Tax Free Savings Account (TFSA). It was designed to allow your investments to grow tax free. You make your contributions with after-tax dollars, and you aren’t taxed on the earnings you receive from the investments held in your account. In other words, if you invest $1,000 now, and over time that $1,000 sees a return that grows to $3,000, you are never taxed on the $2,000 that your money has earned.   Who is eligible to open a TFSA? Any individual who is 18 years of age or older and who has a valid Canadian social insurance number (SIN) is eligible to open a TFSA. When you turn 18, you will be able to contribute up to the full TFSA dollar limit for that year.   How much can I contribute to a TFSA? Each year you could contribute an amount up to your contribution room for the year. Your TFSA contribution room is the maximum amount that you can contribute to your TFSA. The annual TFSA dollar limit for 2015 is $10,000. Unused contribution room from one year is carried forward and added to the TFSA contribution limit the following […]

Filing your income tax return late, can cost you.

One of the easiest ways to avoid giving the government more money than you have to , is to file on time. Otherwise, penalties and interest will be applied on any tax balance owing. Let’s have a look at some of the penalties. First is the arrears interest.  If you owe tax and don’t file your T1 Income Tax and Benefit Return on time or make insufficient payments, the Canada Revenue Agency (CRA ) will charge you interest.  The interest rate is determined every three months and compounded daily in accordance with the prescribed interest rate.  In addition to interest on taxes, the CRA will charge interest on the penalties starting the day penalties are assessed by the CRA. Second is the late-filing penalties.  CRA has the power to levy hefty failure-to-file penalties.  Generally, CRA can assess an automatic 5% penalty for late filers in addition to 1% penalty per complete month for up to 12 months.  Hence, procrastinators who wait 12 months to file their tax return after the due date can face a 17% penalty on the amount of tax owing. If you have repeatedly filed late, the penalties can increase.  It’s important to keep in mind that […]

Deductible expenses for rental investment properties

by admin in Personal Tax

You can deduct any reasonable expenses you incur to earn rental income.  Rental real estate provides more tax benefits than almost any other investment.  Often, these benefits make the difference between losing money and earning a profit on a rental property.   Current expenses vs capital expenses. Expenses that can be claimed are generally broken up into two categories: A current expense is something that usually reoccurs periodically.  For example, general maintenance such as re-staining a deck every few years would be a current expense. A capital expense is basically a lasting improvement to the property that will raise the value of the property.  An example would be building an attached deck to the house you own.  Some other capital costs would be the purchase price of the rental property and the legal fees associated with that purchase.   Deductible Expenses The most common expenses that are deductible from rental income are: Bank charges; Car expense (to the extent that you used your car for real estate activities); Condo fees; Insurance; Maintenance and repairs; Mortgage interest (not mortgage principal); Property taxes; and Utilities. If you’re not sure which expenses are tax deductible, the following criteria should help: The expense should […]

Home Sweet Home Buyers’ Plan

by admin in Personal Tax

Let’s face it. We all have dreams we’d love to turn into reality, like owning your own home. Unfortunately, there’s something that always stands in the way – lack of funds! However, the good news is that one great source of funding for your mortgage down payment is a Registered Retirement Saving Plan (RRSP). If you’re a first time home buyer, the Canadian government can help get you into the home of your dreams faster than you think. Their HBP (Home Buyers’ Plan) allows you to borrow up to $25,000 from your RRSP for a down payment, tax free! If you’re purchasing with someone who is also a first time homebuyer, you can both access $25,000 from your RRSP for a combined total of $50,000. However, you should keep in mind that since the HBP is considered a loan, it must be repaid within 15 years. So how does the RRSP Home Owner’s Plan work? Let’s look at an example: Year home is purchased: 2015 Year of first repayment (2 years); 2017 Amount of down payment from RRSP account: $19,500 Minimum yearly payment: $19,500 ÷ 15 = $1300 In the event you miss a payment, you have to claim the […]

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