Tax Tips by Accountant at Vaughan

  • A severance amount paid to a spouse or common-law
    partner as a result of working in a family business such as farming may qualify as a retiring allowance regardless of past remuneration, provided  an employer/employee relationship existed over that period and the proposed retiring allowance is considered reasonable by the CRA.
  • Consider introducing family members as shareholders so they may participate in dividend income and possibly directors’ fees,
    even if no direct involvement in operations was present to justify
    salaries by Accountant in Vaughan.

    Accountant Woodbridge

    Accountant Vaughan

  • In determining whether a corporation qualifies as a
    CCPC, it is important to ascertain not just the current share ownership, but also with whom the right of control resides. If, for instance, a foreign-based minority owner has the right to either acquire shares or dilute ownership such that the company is no longer
    majority owned by Canadian parties, it could be denied status as a CCPC.
  • A corporation must file a return within three years
    after the end of its taxation year to be eligible to claim this refund in Vaughan.
  • A positive balance in the capital dividend account
    should be paid as soon as possible as subsequent capital losses will reduce the amount otherwise available for tax-free distribution according to Accountant in Vaughan.
  • In order to justify rental loss deductions, the
    taxpayer should provide sufficient evidence of a reasonable expectation of  profit from rental activities. Such proof could, for instance, involve a solid business plan or evidence of reasonable leverage and adequate capitalization by Tax Accountant at Vaughan.
  • Profits and losses from rental property can affect your
    RRSP deduction limit by Accountant in Vaughan.
  • When determining whether a self-employment enterprise, such as a sole proprietorship or partnership, constitutes a true business with allowable expense deductions, rather than being of a personal nature under which such deductions would be denied, the CRA generally places a great deal of emphasis on whether or not the business has a reasonable expectation of profit. Other factors include the amount of time devoted to the business and, depending on the nature of the enterprise, the existence of employees and other factors by Tax Accountant in Vaughan.
  • The salary paid to a family member may allow that
    individual to become eligible for CPP and RRSP contributions; therefore, it is recommended salary to be paid lower income individual by accountant in Vaughan.
  • A bed and breakfast enterprise may also qualify as
    workspace in the home, provided the guest rooms are located inside the owner’s home and not in a separate dwelling.
  • Bottles of liquor or certain food items given as gifts at Christmas or on other special occasions may also be subject to
    the 50 per cent limitation on business meals and entertainment.
  • If you anticipate that the computer software you
    purchased has an expected business life in excess of one year, you should capitalize rather than expense the cost by Accountant Vaughan.
  • Specific costs incurred by employers to improve business
    premises access for the disabled may be deducted in the year they are
    incurred and need not be capitalized.
  • If you dispose of one of several identical eligible
    capital properties with a shared value, you may use an average cost to determine the value of the individual property sold by accountant vaughan.


  • For more information please see your Accountant at Vaughan or call us at 905-794-8283.