Deadlines, Deadlines Deadlines and Easter

Happy Easter!

I hope you all get out this weekend and enjoy what looks like to be a nice spring weekend in Calgary and area.  Take time enjoy yourselves, have fun with family and friends, and be grateful for life.

We will be very grateful when the tax deadlines have come and gone.  I'm sure you will be too, having your taxes caught up and filed on time is something to be proud of.

With that being said I just wanted to point out how the CRA charges interest and penalties on taxes owing. 

If your taxes are not filed and paid by the income tax deadline you may have to pay the following penalties and interest.

-Interest. CRA charges a compound daily interest on any overdue amounts starting May 3, 2011. The current interest rate is 5%. 

-Late-filing penalty. Additionally if you do not file your tax return on time, the CRA will charge a flat penalty of 5% on the balance owing, plus 1% additionally for every month that the return is late.

-There are additional penalties if you continually file late, if you have other years still outstanding, and if you fail to report amounts on your return.

-Instalments.  If you are required to make instalments throughout the year there are also penalties and interest for not making the appropriate instalment payments or fail to make them on time.

On a much more positive note. If you simply file your taxes on time and accurately. If you are organized and responsible, it will save you a lot of money and give you piece of mind to fully enjoy weekends like this one.

Have fun

Enjoying the Calgary weather

In my last post I was excited for the warm weather and spring like conditions here in Calgary. 

Well yesterday I couldn't resist to snap a few photos of my walk into work in the morning of this beautiful spring we are having.  The winter spring of 2011 continues.  Here is a look at the beautiful spring conditions in Calgary.

ENJOY THE WEATHER

The final countdown

Well dare I say it, spring is here.  Or is it?

With only 3 weeks remaining in the personal tax season, we strongly recommend getting in touch with us to get your tax return completed before it is too late.

The streets in Kensington are getting busier, people are getting out and the smiles are plentiful.  What would feel even better is having your taxes out of the way for another year.

With the upcoming Canadian election, you’ve heard many promises or lack thereof.   Most of them involve taxes and tax credits.  There might even be a few you never even knew existed.  It’s a good time to ensure you are getting the most of all credits and deductions available.  Awareness is key. A good accountant can help you capture everything available on your annual tax return.

A common situation we see on personal tax returns and tax planning is the treatment of a rental property.  There are many deductions available against rental property income.  Examples of expenses that can be deducted towards rental income include:

·         Advestising

·         Property taxes

·         Interest

·         Management and administrative fees

·         Utilities

·         Travel

·         Insurance

·         Even certain motor vehicle expenses

These must be all related to generating income and within reason.

Even more importantly is to plan for the eventual sale of the property.  Since the rental property is no longer your principal residence it is subject to gain/loss when you sell the property.  To ensure you minimize the tax implications it is important to ensure the property is dealt with in the most tax advantageous method.

Get out and enjoy the spring weather while it lasts.