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Do you apprentice employees? Lisa Patrick

Canada Revenue Agency has a tax refund that you may not know about or are  not utilizing correctly.  Since May 1, 2006 Canada Revenue Agency implemented the T2038.  Which states that if you are an employer who has paid up to $20,000.00 for a maximum of 24 months, apprentices will qualify for a 10% tax credit.    There is a maximum of $2000 tax savings for the business (employer) of all apprenticeship per year.

Provide your tax accountant the information via this chart below per year via email if you choose per employer since May 1, 2006.

Apprenticeship T2038

Employee Name

Contract Apprenticeship Number

Social Insurance Number

Name of Eligible Trade

Eligible Salary & wages after any reimbursed

amount by alternate government programs.

     
     
     

Please click here for the T2038 information provided by Canada Revenue Agency; Investment Tax Credit (individuals).  Code 6 Apprenticeship job creation tax credit.


Why well designed websites are important for any small business. Lisa Patrick

I learnt a very important piece of information this week I would like to share.  While dealing with the banking institutes here in Canada, they wanted to know specific information about a home builder; how long have they been in business?, what type of reputation do they have?, are they a qualified builder?, a biography of the owner?, etc...

I directed them to their Website.  After a review of the information that was on the Website the bank accepted the builder.  Had this builder had a poorly designed Website, with little or no information on the site the bank would not have accepted the builder.

It goes to show you that the Internet is being used more and more as a resource for many different reasons other than 'finding someone in the yellow pages."  SO, here is my marketing tip for you, If you are a small business owner make sure you think about this story, as you may have the client already but be rejected the job/contract because of what you have placed on the Internet.

Lisa Patrick

CEO


How to Do Bookkeeping Without A Computer Lisa Patrick

Personal taxes for the year (if facing Personal filing deadline in next 30 days)
Do it with the Personal tax slips you have
Use your personal government tax slips or employer t4 slips
You may adjust your personal tax return later once you complete the information from your Company.

Simplest way to do bookkeeping with out a computer.
Use an add machine for totaling of receipts.

Provide Bank Statements for the business so the matching of:
totals for money that went in.
and the
totals for the money that went out
can be compared to your receipt total information as shown in
www.c2online.ca  compare <
http://www.c2online.ca/Store/tabid/80/ctl/ProductDetails/mid/595/ProductID/57/Default.aspx>
 
Prepare each account (category)  total to each Business year end
(fiscal period example
First year:         March 9, 2009 to February 28, 2010
2nd year:            March 1, 2010 to February 28, 2011)
Or cut off date of company when closing
If you desire dissolving corporation or company, contact a registry office for the proper protocol.
 
Group receipts in each category as shown in
Canada Revenue Agency handout:
Business & Professional guide T4002E <
http://www.cra-arc.gc.ca/E/pub/tg/t4002/README.html>
Go to section after page 30
Page 2of 5 Part 4
Income
Other costs may be where you would put any money you transferred to or from your personal account
 
Expenses
Page 2of 5 Part 5
Motor Vehicle Expenses
Page 5of 5 Chart A
Claim the expenses you believe to be business use 100% as one total
Claim the expenses you believe to be business use not 100% as another total…
 
If you are uncertain on the percentage of business use
For example:  
Motor Vehicle
log the kilometer the vehicle travelled for the whole period
and then
provide the log of kilometers you used it for business.
 
Home space used for business office, storage and meetings.
Measure the space of the whole home up and down for square footage available
Measure the space of the whole home up and down for square footage used for business..
Some considerations to a room used some of the time for business and personal, you may need to complete a more complicated home space calculations.
We do have a form that is available at our website www.c2online.ca <http://www.c2online.ca/>   for $4.95 or compare <http://www.c2online.ca/Store/tabid/80/ctl/ProductDetails/mid/595/ProductID/57/Default.aspx> for $7.95.
You need Microsoft excel.


Travel Tax Credit ?? Lisa Patrick

The federal government issued a home renovation tax credit, let's lobby for a travel tax credit!! Stimulate the travel within Canada by Canadians!

How? Implement a travel tax credit for money spent on flying or driving, hotels, campsites, etc. for personal travel. 

Criteria? It has to have two trips to qualify, first $250.00 does not qualify, maximum $10, 000.00

Where on the T1 General Tax Return?  It would not take much to modify the Schedule 12.

Interested?? Contact us.


Lobbying to get Alberta Provincial Government to implement HRTC 2010 Lisa Patrick

Does any one want to start the ball rolling to get the provincial governments to implement the home renovation tax credit for 2010…??

The federal government has dropped it but why not get that schedule 12 to our provincial tax schedules!!!

Contact us


Claiming Interest Expense on Your Taxes - What to do? Lisa Patrick

You must keep the initial loan documents and any renewals in order to claim them as expenses on your income tax.  According to CRA, the bill of sale or paper work showing purchase, any document used to distribute the proceeds like a cheque or money order, any interest statement that reflects the annual interest paid must be kept as well.

The Documents must reflect the name of the person or company claiming the interest expense.  Note: If not - try getting a sub agreement indicating the initial named person did borrow the funds for you or your business.

Keep all the documents including the annual interest statement for 7 years after the loan is paid off.  Please store the documents safe from fire, flood, etc.



Personal Tax Credits - Is your software claiming correctly? Lisa Patrick

First, always make sure your tax practitioner claims medical, donations, child fitness credit, home renovations, all personal credits on the spouse that is paying both provincial and federal taxes.
 

We have had to over ride software programs to claim the amounts so they are in the best advantage to our clients.  REMEMBER: The computer does not always default correctly.
 
This time it made a difference of $1500.00.

Darlene Lafond C.P.C., R.P.A.



June 15 DEADLINE.... Don't Forget! Lisa Patrick

The June 15 filing deadline for persons with a business is fast approaching.  Think about the use of your home, your vehicle, your travel expenses seriously.
Take time to really think and plan with someone…..
If you have not done any thinking or planning for 2009, you probably lost some deductions.
Start thinking about 2010 right away!

If you need help contact us for a FREE 1/2 hour Consult.


Are You Frustrated with the Service CRA offers and don't know who to Complain To? Lisa Patrick

Have you been trying to get help from the tax department and are not getting anywhere?? Not sure where to go to next??

CRA's tax department is there to help... and want to provide better service.  If you have contact with or are not obtaining the tax preparation from the government department, you may correspond to the complaint department. THEY DO REPLY PROMPTLY.  We have had great results.

Go to: http://www.cra-arc.gc.ca/E/pbg/tf/rc193/README.html

Darlene Lafond C.P.C., R.P.A.


As an Accountant what Investments do We Recommend Lisa Patrick

When considering investing, please call the investment company’s client service line and pretend to have a question on an investment they have.  See how long you sit on hold before you actually talk to some one.  Please try this a 3 different times during the day.
 
Also consider giving the investment company a token small investment and then wait for statements to arrive and do the same practice above.

When you do get to talk to them ask them to help you read their investment statements.
 
This should help you decide if you should be investing with that company!
 
We could tell you based on our needs from these investment companies who is prompt, who has a customer service system that actually serves clients.  In the interest of respect to those companies, we would rather have customers make choices based on an informed decision.

Contact us if you are considering an investment that you may have questions about that relate to your tax situation.

Darlene Lafond, C.P.C., R.P.A.


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