Children oh those children

Is it spring yet?  With April in full bloom we are in the heart of personal tax season. This post is a link to an article talking about some of the more common tax credits and deductions available to taxpayers.

 Many of the credits available in the Canadian tax system are related to dependents. Here is a great article describing them.

Have a great April and hopefully summer is soon to come. 

http://www.cbc.ca/news/business/taxes/story/2013/02/08/f-tax-season-2013-child-credits.html

Moving and RRSP time

With 2013 in full swing, we are now officially in personal tax season. The end of February marks two important deadlines: T slip filings for corporations and RRSP contribution deadline for your 2012 taxes.

On top of that we are Moving.

We’re pleased to announce that our office is expanding, and as such, we’ve relocated to a new space. We will have the same convenient location now two floors up in unit #410.

Please note our new address as of March 1, 2013:

410 - 1228 Kensington Road NW
Calgary, AB  T2N 3P7

As it is RRSP season this article will serve as a guideline for RRSP investing.

http://www.huffingtonpost.ca/2013/02/19/a-users-guide-to-rrsps_n_2715264.html

It is 2013
We avoided the end of the world in 2012, so let's enjoy 2013 to the fullest.
With winter settled in and 2012 come and gone, it signals tax time. The big tax planning option remaining for 2012 are available RRSP contributions.  These must be made by March 01, 2013 in order to be deductible on your 2012 tax return.

Those with a December corporate year end;  you have three months to pay your taxes.  That makes March 31, 2013 an important date.  The earlier your accounting data is compiled and delivered to your accountant the more prepared the company will be for the deadline.

February 28th is another important deadline.  Corporations have until then to file their T slips.  T5s and T4s most notably, for amounts paid to employees and shareholders in 2012 must be filed by then.

So with all that being said there is a lot to think about in preparation for personal and corporate tax filings.  Get in contact to discuss how we can help you.

Finally the TFSA limit has increased in 2013.  This article outlines the changes. http://www.cbc.ca/news/business/story/2012/11/26/pol-tax-free-savings-accounts-increase.html

Enjoy the start to a wonderful year.

Halloween

HAPPY HALLOWEEN

We hope everyone enjoys a great Halloween.  Dress up, eat lots of candy and have fun.

Tomorrow is the start of the last 2 months of 2012.  Really? Wow, time sure does fly.

It is a good time of year to ensure all your tax matters are in order.  This applies to both personal and corporate taxation.

For corporations:

• Ensure that the dividends you may be declaring meets your personal tax plan. 
• Possible bonus to pay/declare is done to reduce taxable income. 
• Pay back of any loans to ensure these are not considered taxable benefits. 
• T4s and T5s fillings are due in early 2013, ensure all payroll and compensation matters are being tracked, paid and accounted for. 
• All business expenses are being accounted for that have been incurred.
• Bookkeeping is up to date.

For personal matters:

• RRSP contributions are on track.
• Any deductible expenses are accounted for. Examples include, child care, transit, child arts and fitness, medical expenses, new home purchase. 
• If you have a rental property, proprietorship, or eligible for employment expenses; ensure you are tracking all eligible expenses, revenues and have the necessary forms are completed by your employer (T2200)
• Capital gains and losses are tracked.

These are just a few examples of  steps you can be taking to tax plan before deadlines come and go.  Being organized and prepared will help you plan for and possibly reduce your taxes before it is too late. 

Happy Halloween!

Thank you

Happy Thanksgiving Everyone.

What a beautiful time of year. This fall has been absolutely amazing.

With the long weekend coming up, everyone at Henderson Campeau Chartered Accountants wishes you and your family a very merry thanksgiving.  Enjoy the bounty of the harvest and be thankful for everything.

With the last 3 month's of the 2012 here, it is a good time to ensure all your personal tax matters are on track. Such things like:  RRSP contributions, personal credits are being tracked (transit passes, child care expenses), employment expenses accounted for, and if you run a proprietorship: all expenses are being records. We would be happy to assist if you require any guidance in these matters or anything else.

If you operate a corporation, there are also things to consider such as; dividends to declare, shareholder withdraws and salary calculations, just to name a few.

We would also like to take this time to thank you all for establishing and continuing a business relationship with our firm here in Calgary.

Most of all, enjoy yourself and those around you.

Dog days of summer

With the dog days of summer in full swing, what a great time to ensure your corporate accounting matters are in order.

Summer is a great time to relax and enjoy family and friends.  Throughout summer you may find a little extra down time.  If you are a small business owner what a great opportunity to ensure your corporate finances are being dealt with efficiently and in a manner that ultimately benefits you.

Many small businesses wait until their year end has come and gone, to work on their accounting and financial strategy.  Doesn't it make sense to address those issues as the year is in progress and not after the fact, when it is too late to make a difference.

We encourage you to contact us and to be pro active and address any financial matters that you personally or your business may have.

Common issue to consider are:

• Bookkeeping being processed correctly and timely to produce the reports and tools that allow you to make effective business decisions.
• Compensation from the company to the owners.
• Meeting all deadlines for reporting and payments to avoid interest and penalties.
• Tracking expenses and revenues to ensure the company is on track
• Ensuring the company is deducting all expenses that may be available and done correctly.

Enjoy those dog days.

Happy 100th

Happy 100th birthday Stampede

No more Pennies. The 2012 federal budget.

So looks like spring is coming around the corner.  What a great time of year.  The birds are coming back, patios opening up, and we don't have to wear 15 layers to get to work.

Tax season is in full gear.  The firm is busy as ever.  So on the topic of taxes and finances.  The 2012 federal budget was presented today. 

This is a link to the CBC's highlights.

Enjoy

http://www.cbc.ca/news/interactives/budget-2012/

Questions or need some clarification? Have some taxes to complete? Or just want to get in touch.

Give us a call.

Children's art amount

Happy spring.  At the office we are busy meeting personal clients, completing corporate year ends and excited for yet another personal tax season. It's nice to see everyone this time of year and do a little catching up.

With the 2011 personal tax season here, there are some additional credits available in 2011.  Probably the most common credit will be the children's art amount. 

All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html

For clarification or just to arrange a personal tax meeting please get in touch with us.

Have a great week

Qualified accountant

Winter is here. What a wakeup call. -30 this morning in Calgary.

As a result we are staying close to the office and getting lots of work done. The holidays were great for both partners. We have been getting out and skiing, relaxing and of course eating. We hope everyone enjoyed the season and have has a wonderful start to 2012.

Over December on of our Partners, Paul was featured in the University of Lethbridge paper.  He is an Alumni with the university and was interviewed regarding his career and path to starting Henderson Campeau.  Check out the article. http://www.thisismyu.ca/stories/alumni-focus/2011/12/achieving-success-his-own-terms

Enjoy the winter and the start of a great 2012.

The 12 days of Christmas, a time for giving

To continue on with my theme of giving during these holidays, this post is about donations and their tax treatment.

With the 12 days of Christmas here, it is time to be giving presents.  Those presents could be a donation to a charitable organization. 

For personal tax purposes a charitable donation gives rise to a tax credit.  The credit obtained,
is 15% federally and 10% provincially (Alberta) on the first $200 of donations.
The credit then increases to 29% federally and 21% provincially on any amounts above $200.

Another benefit of donations is that you can claim both your own and you spouse's donations on one return, therefore benefiting from the higher credit on the amount above $200.

As a household if you contributed a total of $500.  The tax dollars you would receive back would be:
($200x 25%) = $50  plus ($300 x 50%) = $150.  Total = $200.     So on a donation of $500 you would be giving to a great cause; then at tax time reducing your tax bill by $200.  You only have to pay a net $300 and the charity gets $500.  Everyone wins,  awesome.

If you own and operate a corporation.  Charitable donations are a fully dedcutible expense for tax purposes.

So if you are thinking of giving these season,  from a tax perspective it is a smart thing to do.  Any donations made before December 31, 2011 would be credits on your 2011 tax return.

Have a great giving season

Christmas is around the corner

Here at Henderson Campeau we are getting excited for Christmas and all the fun  that it brings.

It's great to see the city glowing with Christmas lights, the atmosphere in the neighborhood joyous, and the snow starting to fall.

Skiing season is here and we are excited about that. I'm sure many Calgarians are excited as well.

With it being the holiday season it is a great time to come down to Kensington and support the local businesses. 

Henderson Campeau is a big promoter of supporting local businesses and events.  We are proud to be apart of the Kensington Business Revitalisation zone. 

We encourage everyone to support the local small businesses in your community and getting involved these holidays to help grow Calgary neighborhoods.

Here is a recent article on Kensington in the herald.  http://www.calgaryherald.com/business/Kensington+ramp+excitement+factor/5781654/story.html

Have a great week and enjoy the snow.



International Day of Persons with Disabilities

The holiday season is here, and that means opening your heart to giving. Not only to those close to you, but to those that really appreciate a helping hand.  We should make a habit of giving throughout the entire year and not just at Christmas.

This Dec 3, 2011 is the International Day of Persons with Disabilities. This is an international observance promoted by the United Nations since 1992. We encourage you to participate in this day, at a local level, and think about giving back to those in need.

Check out this link for how to celebrate in Calgary. http://www.calgaryidpd.ca/

From an accounting perspective, I will discuss a few tax breaks that are available to persons with disabilities. People who qualify can take advantage of the credits available.

Disability tax credit

A disability tax credit can be claimed if you have a severe and prolonged mental or physical impairment which restricts your ability to perform the basic activities of daily living, such as: speaking, hearing, walking, feeding, dressing, and performing the mental functions necessary for everyday life.

If the disability qualifies, it must be certified by a doctor, who will then complete this form: T2201

For 2011 the federal disability credit is $7,341.  This amount can also be transferred from the dependent to the caregiver.

Amount for infirm dependent

An individual may claim an amount for dependants age 18 or older, provided they are dependent on the individual because of a mental or physical disability.

Dependant

A dependant is defined as a person who at any time in the year is dependent on an individual for support. This includes the individual's or the individual's spouse's or common-law partner's

• child or grandchild; or

• parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if this person is resident in Canada at any time in the year).

For 2011, the federal credit is $4,282

Registered disability savings plans (RDSPs).

Family members, and other authorized contributors are entitled to establish registered disability savings plans (RDSPs) if they are related to individuals with a prolonged and severe physical or mental impairment.

RDSPs are designed to help parents and others save and provide for the long-term financial security of a disabled beneficiary.

The tax treatment of RDSPs is very similar to that of Registered Education Savings Plans. The contributions to the plan are not tax deductible, investment income accrues on a tax-deferred basis, and withdrawals from the plan are taxable to the beneficiary to a certain extent.

Disability support deductions

Eligible disability supports expenses may be claimed as a deduction if the following conditions are met:

• the expenses were incurred to enable the individual to:

– be employed,

– carry on a business (either alone or as an active partner),

– carry on research or similar work (for which the individual received a grant), or

– attend a designated educational institution or secondary school where the individual is enrolled in an educational program

Example of such payments include: note-taking services, voice-recognition software, tutoring services, talking textbooks, job coaching services, reading services, full- or part-time attendant care services provided in Canada

The disability support deduction is available only to individuals with disabilities; it is not available to people who support them.

Other tax credits include amount for eligible dependents, child care expense deductions, amount for children, medical expense credits, and caregiver amounts. 

Check out this not for profit organization that works with people with disabilities for social activities and lots of fun.  http://www.betweenfriends.ab.ca/

The following is a link to the Government of Canada’s resource for people with disabilities. http://www.pwd-online.ca/pwdhome.jsp?lang=en

If you or somebody you know qualifies for these tax deductions and credits please ensure you are using them.

Have a great day.

2011 Personal tax rates

It is getting cold outside, winter is on our doorstep. Long gone are those dog days of summer and nice fall evenings.  Now we can look forward to warm hot chocolate by the fire, weekends at the ski hills, toboggan runs, Christmas carols and skating.

2011 is winding down, time to ensure all is in order for both your corporate and personal financial matters.

This is the link to the 2011 personal tax rates here in Canada and by province.
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

We look forward to assisting you in any way we can.

Enjoy the start to the winter.

Remember

Remembrance day is this week. A time to reflect and appreciate all the sacrifices that those who serve our country made and continue to make; to allow us to live free in this great nation. Take some time on Friday and remember. Here is a link to some of the ceremonies in Calgary on Friday November 11, 2011.

http://mryyc.com/2011/11/calgary-2011-remembrance-day-events/

On the cover of the...Spotlight

It has been an eventful week at Henderson Campeau. 
The partners of the firm have the honor of gracing the cover of the most recent issue of Spotlight magazine.  The magazine highlights Alberta CAs.
It was fun to take part in the interview and photo shoot.  It was also great to highlight our approach to life and business.

Take a look.  For a pdf version visit our website under the NEWS tab.  www.hendersoncampeau.com

Project Calgary

The fall in Calgary has been very lovely.  Yet another great thing about living in Calgary.

The following is a link to the Calgary Herald's ongoing story about Calgary.  "Project Calgary".  We encourage you to check it out and get involved.  It is all about taking a good look at the city and discussing way to keep making the city a better place to live. 

Check it out.
http://www.calgaryherald.com/news/neighbours/index.html

Enjoy your city.

All the leaves are brown. (Thinking of a Salary or a Dividend?)

The leaves are brown but the sky is definitely not gray.  What a gorgeous September.  The month of July, August and September have been eventful for the firm.  Both partners enjoyed some relaxing vacation  time in Calgary and abroad.

With the last three months of the year upon us the office is busy.  We have all hands on deck and look forward to tackling another busy season. Of course, we’ll also be taking some time to enjoy Calgary’s beautiful fall weather.  

This week, we would like to discuss a significant accounting and tax issue we often encounter with both start up and established businesses: how to compensate the business owner.

Once a business is incorporated, it is established as a legal entity know as a corporation.  The corporation is now a separate entity from the business owner.  As a result, business owners cannot simply withdraw cash from the company without tax consequences.  Corporations will need a formalized structures in place to pay the business owner. This structure is important because it will have cash management and tax implications. The two most common methods of remuneration are salary or dividend.

The following considerations should be examined when putting formalized payment structures into place.  We strongly advise discussing  the following with a qualified accountant to determine what option best suits your business model.

v  Salaries are considered to be active income.  Dividends are investment income.  RRSP contribution room is calculated on active income.  With active income (salary) the taxpayer’s RRSP room increases.  If your only source of income is dividends, the taxpayer cannot build RRSP room nor benefit from certain tax deductions, such as child care expenses.

v  Salaries are considered operating expenses for the corporation.  They are fully deductible in the corporation.  The salaries are then taxed normally through the personal tax payer.  Dividends are not an expense for the corporation.  The dividends are taxed as investment income through the personal tax payer.   There is a tax credit available on the dividends.

v   Salaries require additional administration.  Each month deductions have to be calculated and remitted to the CRA.

v  With a salary, taxes are deducted from each pay cheque. As dividends are usually lump sum withdraws, the taxpayer must pay the applicable taxes when they file their personal tax return.

v  CPP is not payable on dividends.

v  Depending on the corporate structure, dividends can be strategically claimed to defer personal taxes and declare income to different shareholders.

v  Salaries must be paid to employees of the company and dividends paid to shareholders.  If you are not an employee or not a shareholder, the choice has already been made.

As you can see, there are tax consequences and other factors to consider when determining remuneration from your company.  The decision all depends on specific circumstances for each business and owner.

Summer Summer time

Hope everyone is having a fabulous summer.

We enjoyed a busy Stampede, Will did some vacationing in BC and Paul got married in Bermuda. We have been having fun in Calgary as well. 

Below is a link to an article about small business in Canada and the entrepreneurial spirit. 
Small business owners feeling very happy

Have a great week and weekend

Yeehaw! Enjoy the Stampede Everyone