Temporary Adjustment to the Automobile Standby Charges 2020

On December 21, 2020, the Department of Finance Canada released a backgrounder and draft legislation to provide temporary relief in respect of employee automobile benefits for the 2020 and 2021 taxation years. In light of the impact COVID-19 lockdowns and public health measures have had on how employees use their employer-provided vehicles, the government is proposing temporary adjustments to the automobile standby charge.

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Transfer personal property to a Canadian corporation 

If you’re a small business owner that’s unincorporated and you’re planning on forming a corporation. It’s really important that you understand the tax perspective. Often, when you transfer property to a non-arm’s length person such as a corporation that you control, you have a deemed disposition of the property for proceeds equal to the fair market value (FMV) of the property. Assuming the FMV exceeds the cost of the property, the transfer can trigger capital gains or ordinary income.

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Year-end tax planning ahead of 2021

2020 has been challenging year. Many Canadians experienced income changes this year. On the surface, it may not seem like a big tax issue when someone’s income declines. Logically, taxes should decline, too. And many may expect tax refund. However, the situation may be more complicated.

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Temporary flat rate method-Simply your claim for home office expenses

On December 15,2020, Canada Revenue Agency (CRA) has announced a temporary flat rate method to work from home expenses, in light of the impact of the COVID-19 pandemic. Under this temporary method, eligible employees can claim $2 for each day you worked from home due to the pandemic, to a maximum of $400. You are not required to keep documents to support your claim and are not required to obtain your Employer’s sign off on a T2200/T2200S form.

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Employee Work-Space-in-Home Expenses

The 2020 Fall Economic Statement announced that the Home Office Expense Deduction will be simplified due to millions of Canadians unexpectedly working from home because of COVID-19. CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses. They will generally not request that employees provide a signed form from their employers.

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