Shaelene’s Tax Tip of the Week – March 2nd

Books In Line

Did you know that Canadian artwork and antiques can be a taxable expense?

Qualifying artwork can be capitalized and depreciated at a tax rate of 20% for tax purposes. To qualify, the artwork must meet the following criteria:

  • the artwork must cost $200 or more
  • is not held for resale and is exhibited in a place of business where it will be seen by clients
  • is acquired for the purpose of gaining or producing income from an arm’s length individual
  • was created by an individual who was at the time a Canadian

If the artwork has appreciated and is sold, it will result in recapture of CRA up to the amount of the original cost of the artwork and this recapture will be included in the business income. Any amounts over and above the original cost would be considered a capital gain.

Have questions? Give us a call at 905-571-2665 (BOOK)!

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Shaelene’s Tax Tip of the Week – February 16th

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⬇️  Important dates to remember and RRSP limit changes for 2021 and 2022. ⬇️

  • March 1st is your deadline for RRSP contributions
  • March 15th is your deadline for all paperwork (included completed bookkeeping) to be handed into the office. This is in order to have your income taxes completed by May 2nd
  • May 2nd is your deadline to file your taxes (unless self-employed)
  • June 15th is your deadline to file your self-employed taxes, but any money owing must be paid by May 2nd
The limits have been changed for RRSP and are as follows:
  • For 2021 your RRSP limit is 18% of your earned income to a maximum of $27,830, minus any pension adjustments
  • For 2022 your RRSP limit is 18% of your earned income to a maximum of $29,210, minus any pension adjustments

We’ve got you covered!

Have questions? Give us a call at 905-571-2665 (BOOK)!

Shaelene’s Tax Tip of the Week – February 9th

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⬇️    Did you know?   ⬇️

Receipts are considered the financial dashboard of how much money you spent throughout the year. Ensure that you hold on to all receipts and invoices that are pertinent to income earned from your business—whether it was for providing services or selling products.

The CRA recommends holding on to paperwork for up to six years. If you lack back-up documentation, the CRA has the right to impose interest or penalties, and your claims can be disallowed. Additionally, it is highly recommended that you have separate credit cards and bank accounts for personal and business-related transactions.

Have questions? Give us a call at 905-571-2665 (BOOK)!

We’ve got you covered!