Monthly Newsletter – November 2016 Issue
A few items to take note of:
Tax Planning
It is time to start thinking about year-end tax planning. Items to consider before year end include, making donations, selling stocks, contributing to RESP and TFSA, buying a vehicle, equipment or other capital assets. More details next month.
Little or No Income
If you had little or no income in 2016, you may want to consider withdrawing some funds from your RRSP before the end of the year and have it taxed in 2016 at the lowest tax rates. Discuss pros and cons with your advisor before doing this.
RESP’s and CESG
Contribute $2,000 to your child’s Registered Education Savings Plan and the federal gov’t will contribute $500 to the plan through the Canada Education Savings Grant. Repeat annually to get maximum benefit of $7,200 per child from the government.
Disability tax credit
If you have parents or children with a disability, have your doctor complete the disability tax credit form T2201 and send it to CRA to see if they qualify for the credit. Credit can be claimed by the taxpayer or transferred to you in some cases.
CRA Mobile Apps
You may want to download the CRA business tax reminders mobile app to help keep track of your due dates. Go to www.cra.gc.ca/mobileapps for more.
CRA, My Account
Register for My Account on the CRA web site to access your tax information on line, such as your notice of assessment and statement of a/c.
Corporations can register for My Business Account to access their tax information.
New Business
A common theme among those who become self-employed or incorporate a new business is that they wait too long before contacting an accountant. Then they discover a number of things that should have been done earlier or that were done incorrectly and it often end up costing more money. Do yourself a favour and contact an accountant before you start a new business.
HST Quick Method
If you collect HST but have few input tax credits and would rather not keep track of HST then the Quick Method may work for you. Check with your accountant to see if you qualify and to discuss the pros and cons. Note that you have to contact CRA and elect to use this method before you can start filing under this option.
I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.