What is Canadian Corporation Small Business Income Tax Deduction?
The Small Business Deduction is a reduction in corporate taxes for Canadian Controlled Private Corporations or CCPSs. It is great tax incentive for Canadian corporations to increase investment and employment. The favourable reduced corporate tax rate is available on active business income up to the corporation’s business limit for the year.
Eligibility for the small business deduction also depends on the amount of corporations taxable capital employed in Canada.
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BC HST Rate Cut is Win-Win for Everyone
HST in BC is on the verge of elimination. News is Ottawa is already in talks with Victoria how to fold down HST and get the $1.7 billion back. That was the incentive Ottawa paid to Victoria for introducing HST.
Undoubtedly HST is good for both Businesses and Consumers. Businesses are immediately saving 7% PST with the introduction of HST. Unfortunately consumers have not been able to get the benefits of this savings due to the reluctance of many business owners to pass on the savings. The pricing change of products and services or the job creation due to HST has not taken effect as promised by the finance minister. Sure, it created a lot of anger among the consumers.
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Why Translink Evergreen Line Home Owners Should Pay Higher Property Tax ?
Cities without access to world class public transit system, like Translink Skytrain and Bus network system, want huge capital investment in their cities and make their cities more accessible by public transit.
Translink Evergreen Line is a necessity for vast amount of people, who would love to leave their car at home and take public transit.
Translink does not have enough money to cover the cost of this new skytrain line. To make the dream of Evergreen line come true, along with Federal and Provincial Government, Cities covering the Evergreen line must also contribute to this construction funding.
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Illegal Tax Saving Schemes Promoted by Charity Promoters
At the end of the year with Holidays, Christmas and Gift of Giving makes us all charitable and there are these Charity Promoters, who take advantage of your Good Will by tying your charity/donation contribution with tax savings.
Donations in excess of $200 each year will save you 44% in taxes. That is the amount you get as Tax Credit to reduce your overall tax bill.
This is where the Charity Promoters take advantage of you. They promise to give you a charitable contribution receipt many times more than the actual cash contribution. Even with your good will to help the needy, you fall hostage to your greed and give in to their shady scheme. These charity promoters offer you a receipt in the range of $4,000 to $5,000 for every $1,000 cash donation. Their reason for offering the additional money in the donation receipt is that your $1,000 will have such a great effect on the needy, that it could be easily valued at $5,000, so they can issue a $5,000 donation receipt for you.
The problem is this kind over valuation of Cash donation is in violation of Canada Revenue Agency regulation.
If you are given a donation receipt in excess of your Cash donation by a charity promoter, be sure that your tax return will be audited and your donation contribution for tax savings purposes will be disallowed
Donation to your favourite charity is a great way to help the needy also reduce your taxes. There are many other legitimate ways for tax savings other than inflating your actual cash donation.
CRA is actively prosecuting these kinds of Charity promoters.
Canada Revenue Agency Income Tax Real Estate: IRS US Tax
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Tax Issues To Consider By Canadians Investing In US Real Estate Market
I am often being approached by many Canadians asking about the current investment opportunity in US real estate market.
The opportunity might be very attractive, but investing in US or any other country for that matter is very complex for ordinary Canadians.
There are major tax implications to consider for investment property from both US and Canadian Tax agencies.
As a Canadian investor, you must report all your foreign investment over $100,000 to Canada Revenue Agency and also your income from your foreign investment sources to determine tax payer taxable income,
In US, Canadian investor must also file US income tax return and report all income from investment property to the US tax authority. Canadians also must obtain a US tax payer identification number (TIN) from IRS. Without a TIN, Canadian investor would not be able to realize the income from the property and transfer it to Canada. There is also the possibility of 30% source deduction of any profit from the investment property by the IRS.
If you are considering investing in US properties, it would be prudent to seek advice from a qualified tax or investment advisor, who are experts in cross border taxation.