A practical example for small business owner saving taxes with income splitting
Mr Li runs a small unincorporated business in Ottawa, Ontario. His business net income is $88,888. His wife does not have a job and no any income. In 2013 income tax return, Mr Li pays $25,700 income taxes (including $4,712 in CPP contributions for self-employment).
If Mr Li paid a salary of $40,000 to his wife, his net business income would be reduced to $48,888. As a result, Li?s tax bill would be $12,204
If you are a Canadian resident, but living or working in US or have US rental property:
海外资产申报表 (T1135) 新添加的内容包括，海外资产所在的金融机构具体名称，或任何掌握资金的实体名称; 存放海外资产的国家名称; 以及海外资产所产生的具体收益。具体申报内容包括列出的六大类资产︰
违反规定，将面对哪些处罚
对有一年迟报，罚款是$25每天，最高到$2500; 对故意不报，罚款是$500每月，最高到$12000; 对税务局已经发出通知要求申报而故意不报，罚款是$1000每月，最高到$24000;
在加拿大，房屋出租的支出可以用来抵扣房租收入。 …在面对实际的税务问题时，最好向专业会计师咨询，再做决定。欲了解更多，请联 系 AccXpert TaxServices 安可托专业会计事务所 王兵注册税务会计师 – 专业会计及税务服务，可信，快速，低费用.
网址：www.accxpert.ca 邮件： TaxServices@AccXpert.ca 致电： 613-600-6988 微信： AccXpert-TaxServices
| Top 10 Tax Tips |
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Companies may claim a tax deduction for unpaid management fees or salary at year-end, provided that the fees are paid to the manager or shareholder within 179 days of the year-end date.
If a corporation’s year-end falls within 179 days of the calendar year, a bonus payable may provide for a tax deferral.
For example, if a company has a corporate year-end of Dec 31, 2012 and a profit of $100,000, the shareholders can issue a management bonus of $100,000 to reduce corporate taxable income to zero
Many new business owners ask about how to deal with Business Transactions Prior to Incorporation. Here is the right answer for this issue according to the CRA IT-364 Commencement of Business Operations:
2. It is not possible to be specific about the point in time when a contemplated business becomes an actual business. Generally speaking, it is the Department’s view that a business commences whenever some significant activity is undertaken that is a regular part of the income-earning process
If you are a Canadian resident intending to buy a residential property in the United States it is important that you are aware of the following tax implications particularly if you intend to rent it for any period of time during the year.
A non-US resident owning a US residential rental property may elect either of the following options:
This option makes little economic sense.
In order to avoid the 30% gross revenue tax on your US property you must file form W8-ECI (Certificate
For more information, please contact us at TaxServices@AccXpert.com, or call us at 1-613-600-6988.
The tips of buying rental property
If you borrow money to buy or repair a rental property, make sure you arrange things so that the interest on the loan is tax deductible. That means keeping mortgages and lines of credit for the rental property completely separate from loans taken out to buy or improve your principal residence, which are not tax deductible.
Say you have a $100,000 mortgage on your home
While you can claim many expenses as write offs in the year you make them, the IRS treats buying a rental property not as an expense but as a conversion — In other words, you’re turning cash into an asset with value, meaning that no net change to your personal wealth has occurred. However, since buildings gradually wear out, the IRS lets you depreciate it by taking a small portion of value as an expense every year, writing down its value and reducing your taxes. With something like a computer
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