Personal Income Tax Returns Scarborough

Personal income tax return- why calculate in front of kids?

Do you remember how you used to be as a kid? All toys and plays. Not an iota of understanding of how finances work. But as you grew up, you really had a hard time getting along with the tax system and honestly, you still don’t have complete knowledge regarding it. There are fair chances that you’ll shrug your shoulder and say, “I don’t know” when you’re caught off guard. 

It’s important to make our kids aware of the working of tax system. ZRPC, the leading professional tax consultants in Scarborough, advocates calculating your personal income tax returns in front of your kids and making it a play of sorts. And here’s why you should do it.

Telling them about the complexities of tax system

If you’re not aware of the cuts and the corners of tax system, tax filing becomes a nightmare. That’s also because we were not taught how it’s done when we were kids.

Therefore while you’re calculating, make your kids sit with you and participate in the process. Tell them about the tax deductions applicable in the present income, the part which you can write off, and how to properly calculate the return. Even if you’re taking the help of a professional, take your kids along.

This will strengthen their basics of personal income tax and make them confident future tax payers. Because for beginners, filing tax returns can be really daunting for they just don’t know where to start from. This will also come in handy when applying for a student loan. 

They’ll know that small things matter

A little receipt from the gas station, a grocery bill, rent receipts, all these matter when you’re filing your return for a financial year. Especially when you’re running a business that lets you have tax concessions on transport, raw material cost, etc.

When you discuss all this with your kids, they’ll know that even the smallest of receipts are important. When they’ll reach the stage when they become taxpayers, they’ll remember this and will be careful about it beforehand.

Your kids will learn the importance of saving

A penny saved is a penny earned. We all have been hearing this since our childhood, yet the only time we started applying this principle in our lives is when we started paying taxes. But at that time, we take it as a responsibility rather than a habit.

But is started from the beginning, our kids will know how much impulse buying hurts when you’re filing a return. This will make them curb spending on unnecessary items. Apart from that, they’ll know that saving can allow them big purchases in the long run. They’ll also know about the significance of investment and how it should be a part of your financial plan.

Instilling good financial values

If we teach our kids that government takes a part of our earning to spend on infrastructure, education, healthcare, and for managing the whole economy, they’ll know the importance of taxpaying and will emerge as responsible tax payers.

If we want to see our kids grow up to become proud Canadian tax payers, starting from the bottom is a must. Watch this space to know how to explain complex tax terms to your kids. For habits that are formed earliest, stay with us the longest.

Income Tax Filing Scarborough

Top 4 Tips to Save Big in Income Tax

In the modern-day governance, taxes and that too specifically, Income Tax is a necessary evil. It is only for these taxes that we are enjoying so many facilities that we take for granted. But somehow, there are times when the income tax filings and returns haunt people. The main reason is that we are no expert in finances and that is why we need help of people who have their way around the income tax and help us save our hard-earned money. There are several experienced CAs and income tax filing services in Scarborough that can help you out.

So, if you have landed up at this post, chances are there that you are looking for ways to save a bit on income tax. And don’t worry, we won’t disappoint you. We will tell you some amazing and all legal tips to lower down your taxes.

1 Be punctual when it comes to tax returns

Though filing the returns on time won’t decrease the liability, but surely it saves you from all the penalties and interest. In case you miss the date of tax returns, you are levied with certain penalties. Apart from this, the interests charged are really huge. According to income tax experts, if you have to take a bank loan to file the income tax returns, just do it as the interest rates charged on income tax is much higher as compared to the loan rates.

2 Go for tax efficient accounts

Well in case the year has been good on you and you have some extra money in your hands, invest the amount in those accounts where you have to pay least taxes. You can go for RRSP accounts as you get tax deductions from there. You should also opt for TFSA to your maximum capability as there is no tax on the earnings.

3 Split the income

Splitting the income and sharing the tax burden along with the family members is another great way to save taxes. Canada offers its senior citizens various pensions schemes including RRIF and CPP. When you split these schemes with your spouse, the overall taxable income reduces. You can also go for prescribed rate loan as well.

4 Don’t forget the tax-free perks at work

Tax free perks are something everybody knows about but don’t utilise them to their maximum affect. There are certain perks that don’t include any additional tax. These include RRSP and other pension schemes where the employer also has to contribute. In house fitness facilities, merchandise discounts and several other benefits.

In case you are still scratching your head and fussing over the tax returns, it is the time to leave the matter in the hands of expert. Hire the services of Z Rahman Professional Corporation, Chartered Professional Accountants who are professional income tax filing services in Scarborough. So, contact them today and leave all the hassles to them.

Income Tax Returns

Top Income Tax Saving Tips for 2017 and Beyond

As the due date for filing income tax return nears, taxpayers become more conscious of our borrowings, debts and expenses. You suddenly realize that you could've done without a certain taxable item and shouldn't have bought that in the first place. People get more and more anxious as the tax filing date approaches. They don't see it as an opportunity to introspect and know about how they can save on their taxes. It's not so difficult. A little awareness and thoughtfulness is all it takes.

Contribute to RRSP

You must've heard this a lot as an effective way of tax saving. But it's also a great way to save for future. The amount you invest now in RRSP non-taxable account on a weekly basis will grow far more than the amount invested in a taxable savings account.

Restrict loans to investment only

Let's suppose you took loan for buying a car. Now such assets depreciate with time. There is however a difference between their real value and market value. Market value, on which the depreciation is calculated is always greater than the real value. So you end up paying more that what it's worth. But if you purchase loan to further invest in your business, you're liable for many tax deductions and you'll earn from your loan.

Sell off your loss making assets

Even if you have to sell for a lesser value. The best way of tax saving is putting everything in place and getting rid of the clutter. Selling your investments or stocks that are going in for a loss will have you even out your capital gains on your other stocks and you'll be able to save on your taxes on capital gains.

Save with your spouse

You can contribute to savings account or RRSP account of your spouse. It helps to reduce your tax bill. It works best if your income surpasses the earnings of your spouse by a big margin. You can also invest in the name of your spouse. That'll save you a lot of money. Seek professional help on how to go about it.

Keep contributing to TFSA

Unlike RRSP, you can make contributions to TFSAs for as long as you want. Tax-free saving accounts don't come with a mandatory annual withdrawals. Each year, a senior taxpayer can deposit up to $5,500 in his/her TFSA. that way you can even out the tax paid on RRIFs if you invest your RRIF withdrawals in TFSAs. TFSA withdrawals are non-taxable.

Start your own business and keep receipts

A great way to save on taxes is by starting your own business. That'll make your expenses claimable which were earlier taxable. for example, if you are using your car for business purpose, you can claim a part of an aggregate of expenses like gas and servicing etc. It's important to save the receipts in order to differentiate between personal and business expenses. CRA offers many tax benefits for small business owners and you can have your tax deduced by a great margin.

For more expert tips on Corporation Income Tax Returns and personal income tax saving, consult ZRPC, the professional tax consultants in Scarborough.

Corporation Income Tax returns Scarborough

Commercial Insurance

Any commercial insurance premiums on building and equipment that are being used in your business, you can deduce these, applicable under home-based business insurance. It must be noted here that home based business insurance is different from home insurance and former is commercial while latter is personal in nature. So if you are operating your business from home, getting a business insurance and having it deduced is a good idea.

Use of personal vehicles

Many business owners who work from home use their personal vehicles for business use. In that case, you can write off a portion of your automobile expenses like fuel costs, licensing, insurance, maintenance, repair costs, and also to some extent the interest on money you borrowed to purchase that vehicle. It's important to keep a separate track of home and business use of your vehicles like the kilometers driven for business purpose and so on.

Property Taxes and Mortgage Interests

This also comes under home based expenses. You can deduce a part of your property tax and rent or mortgage you are paying on your home if your home is also your business sphere or you've separately rented an accommodation for business purpose. Use the chart to calculate business use of home expenses given by CRA for the purpose.

Miscellaneous Expenses

Besides mortgage payments and property taxes, there are numerous small expenses incurred such as cost of heating the structure, power usage, maintenance, plumbing, internet for commercial use and so on. A part of these miscellaneous expenses can be deduced. You must maintain receipts, sales invoice or any voucher that substantiates your claim.

You can accrue these benefits

If you haven't claimed your Capital Cost Allowance Claim, then you can get carry forward the claims indefinitely and accrue the deductions. You can use these when your expenses surpass your income. CRA calls it the unused work space in home expenses.

Therefore, small, home based business owners can claim a multitude of benefits at the time of Corporation Tax Return Filing. For more info on how to go about these claims, visit Z Rahman Professional Corporation, the tax experts in Scarborough.

Income Tax Returns Scarborough

Benefits of Filing Income Tax Returns On Time and Online

Filing income tax returns on time along with benefit returns is very crucial. It is vital to avoid delays in receiving benefits and credit payments as well as avoiding undue penalty charges and interests on the balance amount you owe. 

Important dates and facts

• Due date for filing income tax and benefit return in Canada for financial year 2016 is April 30, 2017. Now, it being a Sunday, you have the advantage of filing it till May 1, 2017 midnight.   
• For self employed individuals and their spouses/common law partners, the due date is June 15, 2017 for filing their income tax and benefits returns. For any balance amount they owe, the due date is still April 30, 2017.
• Percentage of people filing their tax and benefits returns online has increased drastically, as high as 84 % last year.
• NETFILE-certified tax preparation software is used to file tax and benefits returns online. CRA has published a list of CRA-certified tax preparation software packages and web applications for quick and time saving filing of tax and benefit returns, some of which are available for free.

Online Filing to Save Time

Filing of tax and benefits returns online is easy and efficient as NETFILE-certified tax preparation software sails you through the entire process by guiding you step by step, doing all the calculations and making sure that you don't miss out on credits and benefits you are eligible for. This is for first time filing. When you are a registered account holder with CRA, you are eligible to use "Auto-fill My Return" service. 

If you file your tax and benefits returns online and your email id is registered with CRA for receiving online mail, you will be notified with the results of your assessment immediately after you file.

For every query regarding filing of personal and corporate tax for financial year 2016, consult Z Rahman Professional Corporation. ZRPC is the leading provider of corporate accounting and tax services in Scarborough.

Everything You Need to Know About GST/HST

New tax payers are always perplexed about certain tax norms. Which tax applies where and who is eligible to pay? GST/HST is one such tax which needs to be discussed in detail. 

What is GST?

GST stands for Goods and Services Tax. 

Provinces where it's applicable

1.       Alberta

2.       Nunavut

3.       Quebec

4.       Manitoba

5.       Saskatchewan

6.       Northwest Territories

7.       Yukon

8.       British Columbia

GST Applies to...

GST applies to each supply of real property in Canada (not applicable in certain exceptions which we'll discuss later) and to intangible personal property.

"Supply" of real property includes

(1) Sale of real property. Ownership and possession of such property must be transferred

under an agreement,

(2) When a real property is given on lease,

(3) An option to buy real property,

(4) An assignment to lease a real property,

(5) An assignment of purchase and sale of real property under agreement,

(6) A residential complex building and self-supply‖ for leasing out,

(7) Use of real property in commercial activities depending upon the extent of use.

Intangible personal property refers to trademarks, right to use a patent, copyrighted digital content etc. 

What is HST?

HST stands for Harmonized Sales Tax. 

Provinces where it's applicable

1. Ontario
2. New Brunswick
3. Nova Scotia
4. Prince Edward Island
5. Newfoundland and Labrador

HST Applies To...

HST applies to the same goods and services as GST. It is imposed in "participating provinces" which have harmonized their provincial sales tax with GST. 

What is exempted from GST/HST?

Some examples of exempt supplies of goods and services include

1. Sale of house last used by individual as residence
2. Rental of residential accommodation for more than one month and residential condominium fees
3. Health, medical, and dental services provided by licensed physicians or dentists (not applicable for cosmetic reasons)
4. Child care services with a sole purpose of giving care and supervision to children who are aged 14 years or under for durations of less than 24 hours per day
5. Domestic ferry services
6. On legal aid
7. Educational services including:
• courses provided by a vocational institution that certifies an individual to practice or perform a trade or a vocation
• home tutoring services provided to an individual in a course that's according to a school curriculum
8. Music lessons
9. Money lending or deposit account operating services provided by financial institutions
10. Insurance policy issuance and arrangement by an insurer and by insurance agents respectively
11. Services and goods provided by charities and public institutions
12. Government services and tariffs such as standard water distribution services etc

For any tax related query, contact ZRPC, the tax planning and counseling experts in Mississauga.