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3 Things I Wish I Knew When I Started Investing in Real Estate
By John Paul McDonald CPA, CA – Partner – Campanella McDonald LLP I have to admit, real estate has been a ride for me. My wife, Andrea, and I bought our first property in 2007, I was 27 years old at the time. It was the biggest purchase of our lives at the time and...
The Tax Implications of “Flipping” Properties with Fabio and Joseph
By: Fabio Campanella CPA, CA, CFP, CIM Have you ever wondered how the CRA views property “flips” from a tax perspective? Perhaps you are interested in building a new home or renovating a home for personal use. Will you be taxed? Will you get the capital gains...
If You’re Paying Yourself a Dividend From Your Small Business Then Watch Out For These Pitfalls
By: Fabio Campanella CPA, CA, CFP, CIM When you own a small business, you have two basic methods to compensate yourself: Salary or dividends. Often, the decision is made based on an owner-manager’s personal tax situation, whether or not family members will be paid, or...
How to Apply for the Canada Emergency Response Benefit (CERB) with CRA
Who can apply? You reside in Canada You are 15 years old or more when you apply For your first CERB application: You have stopped or will stop working due to reasons related to COVID-19 For at least 14 days in a row for the period you are applying for, you will not...
How To Access the Temporary Wage Subsidy For Employers
By: Fabio Campanella CPA, CA, CFP, CIM Hello all employers. Recently the Government of Canada announced a “Temporary Wage Subsidy for Employers.” This subsidy is designed to help businesses meet their payroll needs by providing a subsidy equal to 10% of the...
My Portfolio is Down! Are There Any Tax Benefits?
By: Fabio Campanella CPA, CA, CFP, CIM The S&P/TSX Composite Index, Canada’s benchmark stock index, is currently down to the tune of 30% + from its highs this year. The pain in the stock market is not isolated to Canada, for the most part, every major stock index...
COVID-19’s Massive Impact on Small Business
By: Fabio Campanella CPA, CA, CFP, CIM It’s no secret, this pandemic is affecting more than our health. According to Goldman Sachs, small businesses in the US are feeling the impact of the measures taken to halt the spread of COVID-19. We can only assume that Canadian...
COVID-19 Economic Response – What You Need To Know:
Below is a more detailed summary of the points most relevant to our clients: INDIVIDUALS AND TRUSTS Tax Return due date deferred to June 1, 2020 However, if you expect a refund or other benefit (i.e. GST/HST, GIS, etc.) file ASAP! Tax payment deferral: Taxes that...
Are Your Interest Payments Tax Deductible?
By: Fabio Campanella CPA, CA, CFP, CIM Knowing when you can or can’t deduct interest for tax purposes can get tricky. Often, taxpayers (and their accountants) get it wrong. This can lead to hefty penalties and interest from tax reassessments, along with surprise tax...
Did You Know Your “Free” Parking Spot Is a Taxable Benefit?
We're serious.Generally speaking, a free, dedicated parking spot provided to an employee by an employer is a taxable benefit to the employee.There are some exceptions to this rule. For example, if the parking spot is considered "scramble parking" (there are fewer...
If You’re a Contractor Doing “Cash” Deals With Your Customers, Then The CRA Has Their Eyes On You
In case you haven't noticed, the Canada Revenue Agency (CRA) has upped its audit game significantly.Facebook, Twitter, informants, and now, according to the Financial Post: "In July, using what is known as the “unnamed person requirement” (UPR) found in the Income Tax...
Be Wary, Borrowing from Your Family’s Private Corporation Could Come with an Unexpected Cost
It happens often. You’re strapped for cash, so you hit up your brother/sister/mom/dad for a loan. It’s perfectly legal and perfectly normal.But what if the loan doesn’t come directly from that relative? What if that relative owns and controls a private corporation and...
What if Realtors in Ontario Enjoyed the Same Tax Benefits As Other Professionals?
You’ve written exams and hit the pavement, you've dealt with rejection, built momentum, hired staff, leased or purchased an office, put thousands upon thousands of kilometers on your car chasing clients, dealt with regulators and stakeholders. Finally, you’re starting...
If You Run a Small Business Then the CRA Is Looking to Audit You
As legend goes, Willie Sutton, the notorious bank robber, was asked by a reporter why he robbed banks. His answer was simple, “because that’s where the money is.” Sounds obvious, right? Well, it looks like the CRA has caught on to that logic. Albeit, not with banks,...
How are stock options taxed?
The federal government recently announced potential changes to how stock options will be taxed in 2020, but as long as you’re not raking in millions per year, you should be fine. Canadian Finance Minister, Bill Morneau said in June that they’re working towards a...
Five Things Physicians Should Look for in an Accounting Firm
Ontario doctors need to choose their accounting firm with care. Let’s face it - doctor’s have way better things to do than to pour over the Canadian Income tax act. Outsourcing this task literally frees up time to save lives. Physician taxes in Ontario are as complex...
If You’re Running a Sole-Proprietorship, You Could Be Paying Up To 300% More Tax Than Necessary
You're running a successful business. You're making money. You're re-investing in inventory, capital assets, and retirement savings.Everything is going great. That is, until you file your tax return.Entrepreneurship is fraught with ups, downs, and all sorts of...
Should You Use A Corporation To Hold Your Rental Properties?
Our clients who purchase rental properties often ask us the best way to hold them: under a corporation or under their name. Which is best depends on both the kind of property and your tax situation.A Canadian corporation is a separate legal entity that is treated as a...
What to Do If You Haven’t Filed Your Tax Returns
Life gets busy, and sometimes forgetting to file your tax returns can happen. However, not filing can become a serious problem, which means it’s necessary to take action immediately. The Canadian Revenue Agency will eventually prepare a tax return based on the...
Are All Accountants Equal?
Asking if all accountants are equal is like asking if all apples are equal. If you closed your eyes at the grocery store and picked random apples, would you end up with all exactly the same? No. Some would be bigger, some would be lumpy and some would have wormholes....
What To Look For In An Accounting Firm
The most crucial criteria when looking for an accountant firm is to find one that’s a good fit for you.That doesn’t mean the best one, the one that wins all the awards, or is the biggest, but the one that has the most clients similar to yourself. You want the...
Is Age Just A Number When It Comes To Choosing An Accountant?
Let’s say you’re 45 years old, you have two kids, you own a small business, and you’re searching for a new accountant. You’ve found two, both of whom you get on with and who have the same general qualifications. But one is 25 years old and one is 70 years old. Whom do...