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Scholarships Payable to Family through Your Business Lisa Patrick

We have recently determined that a business may pay a scholarship to a staff member or their family members.  This would be a taxable benefit in some situations to the family member.

If the family member meets certain criteria, he or she may be able to exclude the amount from income on his or her income tax and benefit return. Any questions about the T4A slip issued to the family member, you can refer them to Scholarships, fellowships, bursaries, study grants, and artists’ project grants http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/130/schlrshp-eng.html , or to their General Income Tax and Benefit Guide.

For more information please follow this link to Tuition fees, scholarships, and bursaries
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/dctn/ttn-eng.html


Find Success through Confidence! Lisa Patrick

Others will sense if you believe in yourself.  Have you ever been talking to someone that you first met and they fumbled while they talked and provided no direct eye contact and seemed nervous?  I think we all have had that conversation at some point in our business career. That confidence or lack of is what will either persuade a potential new client to believe in you and your service or your product.

Not being able to believe in yourself will work against you and actually hinder your abilities.  Lack of self-confidence can be a wedge between you and the successful, profitable business that you’re striving to create. 

How do you overcome?

It is very simple, you need to find creative ways to boost your self confidence.  It won’t happen overnight and it won’t happen without working at it.   Remember, if you take baby steps forward eventually you will be running your way to success.

1.     When you wake up in the morning look in the mirror and introduce yourself to your self.  Take a look at what others see and if you don’t like what you see change it until you are happy with your simple introduction. 

2.     Approach a complete stranger in the supermarket or in the shopping mall and try to strike up a conversation about something that you both have in common at that very moment – “Hi, I can’t get over how busy it is today and they only have 2 people at the till?”  Did they strike you down with a bolt of lightening? Did the earth fall our from under you … No.  Try it again and again – it will get easier every time.

Your homework - Think of creative ways to approach people and build one step at a time!

If you have the finances; research an expert like a business coach an hire them.  Their sole priority and expertise is to teach you to become the confident professional business person you strive to be.

Remember you are your biggest asset in your business and you can empower yourself with confidence to achieve that success you are looking for.

Lisa Patrick

 


Lost money on a business venture? Lisa Patrick

1.                  certificate of incorp
2.
                 share allotment schedule
3.
                 articles of incorp
4.
                 annual return from province
5.
                 provincial or legal document indicating dissolved or involuntary dissolved company
6.
                 shareholder /  loan ledger is adequate for initial claim…
you do not have to submit receipts but obtain copies of the initial receipts or disbursement that indicate the reason the money was advanced to the corp…
this would have to indicate the business purpose…
consider keeping control of the receipts & paperwork  for 7 years…
a CRA auditor would love you if you provided a binder indicating the bundle of receipts or the receipt matching the actual journal number for each fiscal period where an amount is owed.
7.
                 tax schedules of corporation
The form that is necessary to file it on your person taxes would be available from your tax professional when they claim it on your personal taxes..
Tax details…abil (allowable business investment loss)
50% of amount is deduction against all other income but it may be restricted by the amount you claimed for capital gains deduction and investment losses that exceed investment income in the past.
 
Tax savings of the claim depends on your Tax margin in Alberta:
$40,000 at 25%
$41,000 to $82,000 at 32%
$82,000 to $127,000 at 36%
over $127,000 is at 39%

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


We all know we can claim meals and travel...what you don't know! Lisa Patrick

In an audit the most examined claims are travel and meals.  You must ensure you document your intent for business purposes.  Things you need to do to ensure your deduction is safe:

1. Full name or place
2. Reason for the visit ( We suggest attaching paper work copy of meeting if expense over $500)

When documenting, in our experience the first intent of a business purpose must be evident when the purpose is shared between business and personal. 
VERY IMPORTANT: Keep your personal relationship to the person or place out of the details.  It was a business purpose, that is all that should be indicated on the documentation.

In a recent tax court case, the judge was opening perturbed at the fact that the meal receipts indicated: "lunch with my daughter about the website." This description indicated to him the purpose was personal first and business second. 

We suggest that the description of the business luncheon should read: 'Lunch with our website designer - Penny Joe.... Discussion: Graphics Improvements Needed'

Darlene Lafond R.P.A., C.P.C.
 


Financial Statements – What do they mean? Lisa Patrick

Are you someone who doesn’t know how to read a financial statement?  Financial statements show the “reality” of the situation of a business.

Whether you are a new investor, a small business owner, a manager, an executive, a non-profit director, you need to understand how to read, analyze, and create the financial statements so you can get a full and accurate understanding how much money their is, how much debt is owed, the income coming in each month, and the expenses going out the door.

Building a successful business is about managing money. You have to manage the financial aspects of the business, balancing costs with potential returns.

Financial reports provide information not always visible on the surface.  Good news.. you can learn to read and interpret financial statements.

Business is about repeating the cycle of selling goods and services, making money, and re-investing to grow the business. To succeed you must have profits at the end of this cycle. To succeed long-term, you must apply the profits to further the business interests.

So your understanding of the business statements and the ability to use them can make the difference between creating a strategic game plan, and playing a game of chance.

In the near future we will be offering a free seminar about this very topic ..We want to hear from you… Interested in attending or hearing more .. Let Us Know.


Purchasing Equipment ? Buying A Business – What you NEED to know! Lisa Patrick

When purchasing a business or large ticket items (especially when they offer a guarantee), PLEASE investigate whether the company you are buying from is registered at Canada Revenue Agency GST.

IF THEY ARE NOT that may tell you that the management of their own Business is questionable. It may even indicate that they could be in trouble with the government. So once you validate their GST number, ensure their paperwork uses that business name with that GST number for any sales agreements.

How do I confirm GST #?
To confirm their GST number and the Business name is registered with GST Tax department please:
Phone 1 800 959 5525 ask to speak to someone
OR
You may go on line at the below link and follow their step by step instructions

GST/HST Registry
OR
We offer an 1/2 Hr FREE consultation – NO obligation by phone or visit us in our office.  We encourage searching before you leap where ever you can for info to help make your business decisions.

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


Don’t be part of the statistic about Wills especially if you own a business. Lisa Patrick

Are any of these answers your answer to why you don’t have a Will?

There is no definitive statistics In Canada that I could find, but there is the collaboration  of research that states that many Canadians do not have Will.

Why?

  1. I don’t have enough money to worry about it.
  2. I am single.
  3. I don’t have any children.
  4. I don’t like to think about my death.
  5. Writing a will is time consuming, expensive and complicated.
  6. I am too busy building my business or working trying to make a living.
  7. I don’t want to deal with a lawyer.
  8. I don’t have money to get a Will drawn up.

Why have a Will here are several good reasons why:

  1. Avoid, or at least reduce, estate taxes.
  2. Don’t leave your children to the care of the government, name a legal guardian for any children you have.
  3. Don’t leave your family who are mourning for you in a mess handling your estate.  Appoint an executor to handle your estate and/or resolve any disputes over your estate.
  4. You have no assets, no bank account and nothing of monetary value, but maybe you have items of sentimental value that names may need to be placed on them.
  5. If you have children, preserve your assets by setting up a trust fund.
  6. You are single and have no dependents.  Make sure that what you have assets, those items that have sentimental value, etc. are appointed to who you want them to go to .. .don’t let the government decide … maybe there is no one to leave your estate to big or small .. .maybe the local hospital, or a child in need in your community could use the estate funds for education, food shelter…
  7. You own a business – YOU NEED a succession plan for your business.

Lisa Patrick
CEO


Out of Town Travel and What CRA Court Says Lisa Patrick

Reasonable Expectation of Profit.

An audit we recently represented at Tax Court of Canada focused on the claim of business meetings with the government scrutinizing the vehicle trip log and some out of town travel.

The judge chose to disallow some deductions even though the client had provided all the receipts.

The final conclusion may have been more favorable if the kilometer logs & travel itinerary of the meetings actually would have had the following information present:

  1. actual street address of meeting location
  2. job description or job title and complete name of all attending meeting
  3. brief summary of discussion must have specific details not just promotional meeting.

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