Staying current is important for our business and yours. These tax publications and resources are provided for your use. If there is information or issues that you need clarified, don’t hesitate to contact us.
Transfer personal property to a Canadian corporation
January 08, 2021
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.
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.
Temporary flat rate method-Simply your claim for home office expenses
December 17, 2020
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.
The BC Recovery Benefit (the benefit) is a one-time direct deposit payment for eligible families, single parents or individuals. Benefit eligibility is based on net income from your 2019 tax return. You must apply to receive the benefit. Applications open December 18, 2020.
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.