The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes remains at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2002. This ceiling restricts the cost of a vehicle on which CCA… {Read more}
Category: Small Biz Advice
The CRA cautions businesses on Electronic Sales
The Canada Revenue Agency (CRA) is aware that electronic sales suppression software (often referred to as “Zapper” software) is currently being marketed and sold to some Canadian businesses. Electronic sales suppression software is designed to work with point-of-sale systems and… {Read more}
Interest rates for the first calendar quarter
The Canada Revenue Agency announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable… {Read more}
Effect on Businesses of Elimination of the Penny
The Ministry of Finance has stated that businesses are not required by the government to reprogram their cash registers, but they may choose to update their cash registers to automatically calculate rounding for cash transactions and to provide greater transparency… {Read more}
Dividend Tax Credit
The dividend tax credit is a non-refundable tax credit which applies when Canadian dividends are included in income. Foreign dividends do not qualify for the dividend tax credit. Both dividend tax credits are claimed on Line 425 on Schedule 1… {Read more}
$750,000 CAPITAL GAINS DEDUCTION
You can make use of the lifetime $750,000 capital gains deduction if you dispose of shares in a qualified small business corporation, a qualified farm property, or a qualified fishing property. If you have already claimed the $100,000 personal capital… {Read more}
CONTRIBUTE TO YOUR RRSP
The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP). Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution… {Read more}
Hiring Credit for Small Businesses-Extended to 2012
The 2012 federal budget extended the hiring credit for small business (HCSB), a one-time credit intended to stimulate new employment and support small businesses. The HCSB provides small businesses relief from the employer’s share of employment insurance (EI) premiums paid… {Read more}
Remittance Voucher for Current Source Deductions
Each December, the CRA provides accelerated remitters (except monthly accelerated remitters who receive Form PD7A) a booklet of PD7A-RB forms (either 27 or 54 forms) to use to remit deductions. These booklets are printed once a year. Form PD7A-RB has… {Read more}
On-line Advertising Income
If you have a website or a blog and you charge for advertising, links, or reviews, you must report the income on your Canadian income tax returns. Send invoices to your clients and customers. If your invoices exceed $30,000 in… {Read more}