Unless you report self-employment income on your personal return - the return is due on April 30 (usually). Since April 30th falls on the weekend this year, you have until May 2nd to file the return. This is nearly a week from now. So for you procrastinators, the time is here for you to get your receipts together and file the return. You should always file on time, because something could happen to cause you to owe money. I have seen situations where an employee was pretty sure that they did not owe any money – but – their T4 was changed by CRA, long after the filing deadline for their personal returns and they ended up owing money. So don’t take a chance – file your return on time.
"The Trudeau government’s first budget was not as scary as many of us in the tax preparation business had feared. The government focused on spending money and did not make any huge tax changes.
There was no change to the small business deduction availability for most active businesses which was widely predicted and would have been a game changer for many of my clients. Capital gains rules for selling small business shares was not changed nor was anything done to the stock option rules.
There are a few tax credits that are gone – the children’s fitness and arts credits are gone by 2017 but the new Canada Child Benefit more than makes up for the loss of the tax credit and you don’t need receipts!
People who are using life insurance policies as an investment and/or for tax deferral should check with their insurance brokers soon, because there was a change made to the tax status of those policies, potentially reducing the amount that could be paid out of a corporation tax free after the death of the insured.
If you are a teacher, with a teaching license, you should start keeping receipts for any amounts that you pay out of your own pocket for class room supplies. You will be eligible for a tax credit of 15% for expenses up to $1,000. This was effective on January 1, 2016.
Other than what I have said above – there is nothing that you need to do differently based on this budget. Keep in mind that they are spending a lot of money, so there could be tax grabs to come." -Debi J. Peverill
Avoid the top ten tax traps small business owners will be victimized by during the life of their business. Based on Debi Peverill's 30+ years of experience as a Chartered Accountant, these are the most common avoidable traps for business owners.
and much more!