Monthly Tax Tips – November 2017 Issue ~ from Andre La Rosa
Monthly Tax Tips – November 2017 Issue ~ from Andre La Rosa

A few items to take note of:

New Tax Initiatives for Private Corporations
The government has backed off on part of this initiative introduced back in July 2017. Thanks to various business groups who showed the government how detrimental this bill could be. However, some parts will remain. Start talking to your accountant about how this could affect your small business.

New Small Business Tax Rates
Some good news. The Federal Government re-introduced the reduction of the small business tax rate which was supposed to take effect after the past election. The rate will decrease .5% effective Jan/18 and another 1% effective Jan/19.

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 2017, you may want to consider withdrawing some funds from your RRSP before the end of the year and have it taxed in 2017 at the lowest tax rates. Discuss pros and cons with your advisor before doing this.

RESP’s and CESG
Contribute to your child’s Registered Education Savings Plan and the federal gov’t will contribute 20% to the plan, up to max of $500, through the Canada Education Savings Grant. Repeat annually to get maximum benefit of $7,200 per child from the government. Consult your financial advisor for more details.

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.

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. Contact an accountant before you start a new business.

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.