Profile cover photo
Profile photo
Alborz
19 followers
19 followers
About
Alborz's posts

Post has attachment
    iAccounting is a full service Accounting Firm, specializing in and the leader for providing Live Accounting, Online Bookkeeping and Tax services for individuals, small & medium sized corporations and large enterprises in Greater Toronto Area and anywhere in Canada.
#accounting   #taxes   #bookkeeping   #taxcredits  

Post has attachment
Most Overlooked Tax Deductions and Credits
 
When you miss out on credits and deductions, you leave money behind. Only once a year during tax season you have the opportunity to save some money, other than that you don’t get back anything the rest of the year. Review our list and brief descriptions of some of the most overlooked tax deductions and credits, to find out if you are eligible to claim any of them.
 
 
Kids Fitness Amount
 
The non-refundable children’s fitness tax credit has been increased from $500 to $1000 per child in 2014.
To be eligible for this credit, your child must be under 16 years of age or under 18 if they are eligible for the disability amount at the beginning of the tax year in which the fitness expense has incurred. Qualifying programs for this amount should be: ongoing, supervised, and suitable for children and require significant physical activity. Hockey, soccer, horseback riding, sailing and bowling are some examples of eligible programs. Also fees charged for extra-curricular programs that take place in schools are eligible, however fees paid for accommodation, travel, food or beverages do not qualify.
 
 
Kids’ Art Amount
 
Under the non-refundable children’s art amount you can claim up to $500 per child, the fees paid in 2014 for registration or membership in a program of artistic, cultural, recreational or developmental activity.
To be eligible for this credit, your child must be under 16 years of age (or under 18 if eligible for disability tax credit) at the beginning of the tax year in which the eligible art expense was paid. To qualify for this amount a program must be: ongoing, supervised and suitable for children. According to Canada Revenue Agency, The Program should include an activity that “contributes to the development of creative skills or expertise in artistic or cultural activities, provides a substantial focus on wilderness and the natural environment; helps children develop and use particular intellectual skills, includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or provides enrichment or tutoring in academic subjects.”  Please note that programs that are part of a school curriculum are not eligible for this credit.
 
 
Kids’ Summer Camps
 
The cost of summer camps qualifies under child-care expenses. You can claim the cost of day camps, day sports camps as well as overnight camps where lodging is involved. CRA defines eligible child for this amount as: “ your or spouse’s or common law partner’s child; or a child who was dependent on you or your spouse or common law partner , and whose net income in 2014 was $ 4,138 or less. The child must have been under 16 years of age at some time in the year. (Age limit does not apply if the child is eligible for disability amount.)
 
 
Public Transit Amount
 
The Public Transit amount allows you to claim the costs of passes you purchase for local buses, street cars, subways, commuter trains, commuter buses and local ferries; where these passes allow unlimited travel within Canada.
The cost of short-term passes could be claimed if the pass entitles you to unlimited travel for at least 5 consecutive days and you buy enough of these passes for 20 days in any 28-day period. Also the cost of electronic payment cards could be claimed if you use the card to make at least 32 one way trips during a 31-day period and you have a receipt for the cost and usage of the card. Please note that ride/trip passes are not eligible for this credit. If you pay for your child’s monthly transit pass, you can claim it on your taxes.
 
 
Disability Tax Credit
 
The Disability Amount is a non-refundable tax credit used to reduce income tax payable. To be eligible for this credit the impairment in physical or mental functions must be severe and prolonged, which means it has lasted or is expected to last at least for 12 months. Also the impairment must be certified by a qualified practitioner. The list of eligible conditions is very long, ranging from personality disorder, anxiety and ADHD to bowel or bladder, speaking, hearing and vision disorders. You can claim this credit for yourself, your dependants and also your spouse or common-law partner.
 
 
Home Buyers’ Amount
 
You can claim $5,000 for the purchase of a qualifying home if you did not live in home owned by you or your spouse or common-law partner in the year of acquisition or in any of the 4 preceding years.
 
 
Student Loan Interest
 
The interest you pay on federal and provincial student loans is eligible for a tax credit. You can claim an amount for yourself or a person related to you and also you can carry the interest forward and apply it on your tax return for any of the next 5 years. Please note that student loans and line of credits from financial institutions are not eligible for this credit.
 
 
Family Tax Cut
 
 The Family Tax Cut, is a federal tax credit that will allow a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief – capped at $2,000 – for couples with children under the age of 18, effective for the 2014 tax year. To be an "eligible" family, you must be married or living in a common-law partnership, were both residents of Canada on December 31, 2014 and you must have at least one child under the age of 18 at the end of the year, and that child must reside with the couple throughout the year. Also both you and your spouse should file a return for the year this credit is claimed. Please note that both partners will need to complete their returns at the same time to get this credit, since any changes to one partner’s income or tax credits will impact the other partner’s return.
 
 
If you are planning to benefit from these credits and deductions this year but already dreading the math involved, leave the calculations to our team of highly experienced tax professionals at iAccounting. Visit us at www.iaccountingservices.com to book your free consultation session, or ask your questions via our online live chat system.
Photo

Post has attachment
New Family Tax Cut Credit
 
On October 30, 2014, Prime Minister Stephen Harper announced new measures to help make life more affordable for Canadian families. One of the proposed new measures was The Family Tax Cut, a federal tax credit that will allow a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief – capped at $2,000 – for couples with children under the age of 18, effective for the 2014 tax year.

To be an "eligible" family, you must be married or living in a common-law partnership, were both residents of Canada on December 31, 2014 and you must have at least one child under the age of 18 at the end of the year, and that child must reside with the couple throughout the year. Also both you and your spouse should file a return for the year this credit is claimed. Please note that both partners will need to complete their returns at the same time to get this credit, since any changes to one partner’s income or tax credits will impact the other partner’s return. (For exceptions and more guidelines, please see http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa10-eng.html#a5

Are you planning to benefit from Family Tax Cut credit this year but already dreading the math involved? Leave the calculations to our team of highly experienced tax professionals at iAccounting.

Visit us at http://iaccountingservices.com/ to book your free consultation session, or ask your questions via our online live chat system.
Photo

Post has attachment
GST/HST New Residential Rental Property Rebate (NRRP)

The NRRP Rebate is available when GST/HST is paid on the purchase of a newly constructed or substantially renovated residential complex, and the purchaser leases the unit to another person for residential use.

Purchasers who rent out a new home so that the first occupant of the new home is a tenant are entitled to the NRRP Rebate but cannot obtain this rebate from the builder. Such Purchasers must apply for the NRRP Rebate after closing. The main condition to qualify for the NRRP Rebate is that the new home is used as a primary residence in the long run by someone.

A one year lease is required by Canada Revenue Agency (CRA) to prove this. The application for the NRRP Rebate has to be made within two years of the purchase of the property. If a purchaser receives a new residential rental property rebate, they have to repay the NRRP Rebate if they sell the property within one year.

This means that anyone who buys a brand new investment property, rents it out immediately, but then sells it quickly, is not eligible for the NRRP Rebate.

Some of the important documents needed to apply for the NRRP Rebate are as follows:

- The Statement of Adjustments from closing 
- The Purchase and Sales Agreement 
- A copy of a lease/rental agreement to show it is rental housing stock (this is key as the intent of the rebate to investor is predicated on this being true - if the purpose of the purchase is to buy and resell, full GST/HST will apply)
- A copy of the insurance policy (owners policy)

For more information about the NRRP Rebate and guidance on preparing the forms and documents for this application, please visit us at http://www.iaccountingservices.com/hst-housing-rebate.html and book your appointment for a free consultation.
Photo

Post has attachment
GST/HST on Trucking Services

Three different types of services may incur while providing service to the carrier in the trucking industry which fall into the following categories and each situation requires its own application to the GST/HST.

Employee Driver:
When the driver is employed by a trucking company to drive carrier trucks, the salary and wages paid to this employee are not subject to GST/HST, however they are subject to source deduction, which is payable to CRA under the carrier payroll account.

Self-Employed Driver:
When a self-employed driver does not use their own truck and does not assume liability for the supply of a freight transportation service, this is considered as providing driving service which is subject to GST/HST when the self-employed driver is a GST/HST registrant and their annual revenue exceeds $30,000 gross limitation. For more details on GST/HST registration please see: http://www.iaccountingservices.com/gsthst.html

Regardless of whether the cargo is being moved within Canada or to the U.S., the service is not zero-rated and is subject to GST/HST. The Canada Revenue Agency has issued an information circular and deemed that the delivery of the “service” itself is considered delivered to the carrier’s office. Assuming the carrier is Canadian, GST/HST does apply to driving a truck to the U.S. and back.

Owner-Operator:
When an owner-operator meets the definition of a carrier, and as an independent contracts to supply international freight transportation services using their own truck and assumes liability to supply a freight transportation service; hence the following international freight transportation services will be zero-rated when the service involve:

- Transportation of goods from a place in Canada to a place outside Canada
- Transportation of goods from a place outside Canada to a place in Canada
- Transportation of goods from a place outside Canada to another place outside Canada, even if the goods pass through Canada.

However, if an owner-operator does not assume liability to supply a freight transportation service, then it is not a carrier for purposes of the GST/HST.  Instead, the owner-operator is providing a driving service similar to a self-employed driver and this service is subject to GST/HST when supplied by a GST/HST registrant.

Domestic Freight Services
Most domestic freight transportation services provided in Canada are generally subject to the GST/HST. However, the following freight transportation services supplied in Canada are zero-rated as follows:

- Services that are part of a continuous inbound or outbound international freight movement
- Services that are being supplied to another carrier under an interlining arrangement that are part of a continuous freight movement.

Interlining
If an owner-operator provides a freight transportation service on behalf of a carrier and that carrier remains responsible for invoicing the customer, the services provided by the owner-operator are zero-rated since the owner-operator is an interlining carrier and is not the invoicing carrier.

When a person whose business includes the supply of freight transportation services is shipping his or her own goods and transfers possession of those goods to a carrier, that person is the shipper of the goods and not a carrier. In this case, the interlining rules do not apply.

 
For more information please visit CRA website with the following Guide:
RC4080: GST/HST Information for Freight Carriers
GST/HST Memorandum 28.2:  Freight Transportation Services
Photo

Post has attachment
Fall Back in Love with Your Business

When you started your business, dreams for a bright future seemed like fireworks. Warm promises of commitment heated up your relationship with your business. Is the honeymoon period over? Has the reality of running a business fizzled out the flames? Has your business become a chore? Dealing with your finances on daily basis, profit and loss statements, bank reconciliation, cash flow, inventory control, expense tracking and… have they put your relationship with your business on the rocks?

You Need a Break!

Taking a break from your finances is very tempting, however it won’t work for your business. Comprehensive bookkeeping and financial reporting is a legal obligation you cannot ignore. Being on top of your finances gives you a better awareness of your company’s strengths and weaknesses which you can respond to. Let’s stick to this one!

So what can you do to bring back the magic? Are you ready to take the next step? Bring someone new onboard. It can do wonders for your relationship with your business! A cloud-based accounting program is the best solution for you! Giving your accountant complete visibility over your finances in real-time, enables you to get the most out of your accounting system. When your accountant has access to your company’s in-depth financial information, they can spend more time providing you with business advice. Utilizing a cloud-based accounting program, turns your accountant into your virtual CFO.

Identifying the weaknesses or problematic areas of your business is the first step towards finding the best business solutions. From automated inventory control to customer relationship management and bank feed, there are many solutions that can be integrated into your accounting tools. The financial snapshot through a dashboard will provide you with your company’s big picture and growth report in real-time.

Once you get everything in order, you will be able to focus on the parts of your business you fell in love with in the beginning. By choosing a good cloud-based accounting program you’re not tied to your desk anymore. You can pick up your favourite device (e.g. laptop, tablet, smart phone) and work with your finances by the pool, at the beach, in a ski resort or the comfort of your own home.

A cloud-based accounting program can do wonders for your love affair with your finances and make you fall in love with your business all over again.
Photo

Post has attachment
Tax Season is Here. Are You Ready?
Photo

Post has attachment
GST/HST New Housing Rebate up to $30,000:

Purchasing a home is a big investment, which is why any money that home buyers can get back from government is very important as buyers will pay a large amount of tax when purchasing new property.

The government’s HST rebate allows buyers take a portion of HST back, which is a welcome relief to many customers.

The HST new housing rebate allows individuals to obtain some portion of the goods and services tax (GST) or the federal part of the harmonized sales tax (HST) paid, if the total purchase price of the home is less than $450,000 otherwise the federal portion of the HST paid is not recoverable.

Still, buyers may be eligible to claim a provincial new housing rebate to recover some of the provincial part of the HST that is paid to buy the home if it is located in Ontario, and the maximum Ontario new housing rebate amount available is $24,000.

Canada Revenue Agency (CRA) prescribes very specific rules with respect to the use of new housing rebate, with respect to the sale of the property, and the timeline to file for the refund. Without proper guidance early in the process buyers may lose the right to this rebate.
Photo

Post has attachment
Holiday a legit medical expense, tax court rules:

NOT SURE IF YOU HAVE AN ALLOWABLE TAX DEDUCTION?

It might pay to claim it anyway, as a Thunder Bay, Ont., woman found. She tried to claim a medical expense tax credit of nearly $17,500 for a winter trip to Thailand and Indonesia in 2009.

While CRA denied the claim, the Tax Court of Canada recently overturned the decision, ruling that her travel to a warm climate - as advised by her doctor to ease chronic pain - was a legitimate tax deduction. The expenses included flights, accommodation and meals during the four-month trip not just for her, but also for her husband. "She wouldn't be able to travel for a lengthy period on her own," Justice Judith Woods stated in her decision. 'Attendant expenses are accordingly satisfied."

Source: Chartered Professional Accountants of Canada Magazine; December 2014
Photo

Post has attachment
Universal Child Care Benefit Proposal Starting 2015 Tax Year:

The Government of Canada introduced a family tax cut including Universal Child Care Benefit, announced Oct 30, 2014 .

It is proposed to increase the Universal Child Care Benefit which was introduced in 2006, by providing up to $1,920 per year for each child under the age of 6, and introducing a new benefit of up to $720 per year for children aged 6 through 17.

The UCCB enhancements would take effect starting January 2015 and begin to be reflected in monthly payments to the recipients in July 2015, pending parliamentary approval of the necessary legislation. The July 2015 payment would include up to six months of benefits to cover the January to June 2015 period.

These enhancements to the UCCB would replace the Child Tax Credit, starting in the 2015 tax year. Thus when the 2015 revision of Form TD1 is released, it will reflect that the Child Tax Credit has been replaced by the enhanced Universal Child Care Benefit.

Overall, new legislation would benefit families with children to receive UCCB for children up to the age of 17 regardless of family income.
Photo
Wait while more posts are being loaded