In a Tax Court of Canada case, a mother had guaranteed the business loans for her son’s corporation. Unfortunately, the corporation failed and subsequently the mother paid off the loans. The mother claimed business investment losses for the amounts repaid.
Her only motivation for the guarantee was to assist her son’s business. She did not charge […]
Self-employed Canadians are able to voluntarily access Employment Insurance (EI) special benefits. There are four types of EI special benefits:
Maternity benefits (15 weeks maximum) available to parents of a new born or newly adopted child. It covers the periods surrounding birth. A claim can be submitted up to 8 weeks before the expected date of birth, and […]
The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family caused by the loss of income due to retirement, disability and death.
There are three types of CPP benefits:
Disability benefits (which include benefits for disabled contributors and for their […]
When deciding as to whether a salary should be paid to a family member, or more specifically to one’s spouse, numerous questions arise. On one side, there is the question of the risk involved that the salary may be unreasonable and having the expense being disallowed. On the other side, there is the benefit of […]
CPP/QPP-2018
Year’s Maximum Pensionable Earnings
Year’s Basic Exemption (by pay period type):
* Annual
* Monthly (12)
* Semi-Monthly (24)
* Bi-Weekly (26)
* Weekly (52)
Maximum Contributory Earnings
Contribution Rate – Employee/Employer
Contribution Rate – Self-Employed
Maximum Contribution – Employee/Employer
Maximum Contribution – Self-Employed
$55,900.00
$3,500.00
$291.66
$145.83
$134.61
$67.30
$52,400.00
4.95{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}
9.9{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}
$2,593.80
$5,187.60
TD1-PERSONAL TAX CREDIT RETURN (FEDERAL)-2018
Basic Personal Amount
Eligible Dependent or Spouse or Common-Law Partner Amount
Pension Income Amount
Age 65 Amount
Disability Amount
Canada Caregiver Amount
Family Caregiver Amount for children under […]
Any small business owner can increase their profit if they follow a certain set of guiding principles. If you are like many business owners, you have tight budget. Does it really need to be that tight?
The answer is no. There are ways around paying more to get less. Here are three ways that you can […]
The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes remains at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2002. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
The limit on deductible leasing costs remains at $800 per […]
There are several areas that are included in estate planning. Here is a brief list of some of them:
You should have a will that includes your desires and tax considerations.
You should consider steps to minimize probate fees (or Estate Administration Tax) on your death, if applicable.
You should have enough insurance to meet […]
Every business owner should be concerned about creditor proofing his assets. Here are several suggestions to consider:
1. Transfer assets out of the company:
Place capital assets in a separate holding corporation so that subsequent legal claims that arise in the operating company do not affect these assets.
Lease the assets in the holding corporation back […]
If you have a website or a blog and you charge for advertising, links, or reviews, you must report the income on your Canadian income tax returns. Send invoices to your clients and customers. If your invoices exceed $30,000 in the last four consecutive calendar quarters, you must register for HST/GST. Once you are registered, […]
