Optimizing Tax Return using proven menthods-NumbersPlus Accounting
Personal Tax
Optimize your tax return by using proven methods available to you.
 
 
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Tax Services:
Tax Returns for Individuals

When it comes to preparing tax returns for each individual, the Income Tax Act provides limited options. Despite these limitations, Numbers Plus will work with you to optimize your tax return by using proven methods during the preparation process. After all, a missed deduction means more costs for you. There are a number of considerations (deductions, tax credits and other benefits), that are always considered when preparing your tax return. We know these, let us help you with them.

These include:

  • Pension Plan Contributions

  • Automobile, travel, supplies and office expenses – if the employer has signed a T2200 for the current year

  • Trade union and professional dues

  • Transportation Employees’ board and lodging– if the employer has provided a TL2 for the current year

  • Legal expenses to recover, or attempt to claim, salary and wages from an employer. This includes fees for dealing with a lawyer when considering either an offer (if the offer is accepted) or termination of employment. This also includes legal fees to get a payment from an insurance plan that is provided via your employer.

  • Tradesperson, and Apprentice, Tool Deductions

  • RRSP deductions

  • Medical expenses

  • Charitable Donations

  • Spousal Support payments

  • Adoption expenses

  • Foreign Pensions and the relevant Tax Treaty implications

  • Disability support and attendant care costs

  • Moving expenses

  • Child care expenses

  • Pension Income Splitting

  • Allocation of Dividend Income between spouses

  • Treatment of stock options

  • Home Buyers Plan and Life-long Learner Plans

  • Student Tuition and Education/Textbook credits

 

Additional items that commissioned sales people may deduct include:
  • Payments made for a client list

  • Employment of an Assistant

  • Possible GST rebate on the expense incurred that are not reimbursed by the employer

 
Sole Proprietorships & Partnerships
Small Business Tax Return Preparation

Any small business owners start off as a sole proprietor or as a partnerships. An unincorporated small business income is reported on additional schedule(s) of your personal tax return. The revenues and expenses must be reported on a Statement of Business Activities and the accumulated net income is what will be considered when determining your tax and CPP liability.

Some examples of revenue and expenses that may be claimed are:

  • Home office – Only applies if you do not have another office location or if more than 50% of your work is exclusively done at home where you regularly meet with clients.

  • Automobile – Applies for business purposes only. A mileage log should be kept as proof for kilometers driven.

  • HST – Registering and/or collecting HST (on other sales tax) is a requirement once $30,000 in revenue is earned in any consecutive twelve-month period

If you report business income on your personal return then your filing due date is June 15th, however, any amounts payable still must be paid by April 30th.

Here at Numbers Plus, our team of professionals can file your sole proprietor tax return to ensure you are able to maximize your earnings, by claiming all allowable deductions which will reduce your tax liabilities. 

 
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Partnership Tax Returns

A partnership is not responsible for filing an annual income tax return, however, a partnership is required to file its own tax form, called a T5013, in Canada. In some circumstances, this means that the partners involved are responsible to include their portion of income generated on their income tax return. Ultimately, this requires a clear understanding of the financial reporting and tax requirements for each partner. Due to partnerships having their own unique reporting issues and tax implications, it is important to have a professional tax accountant manage your financial reporting and taxes. This way you can feel confident that you are receiving the necessary tax advice you need.

 
Rental Property Owners
Rental Property Tax Deductions

Rental property can be a great investment, however, if your knowledge of the process is insufficient it may become detrimental in the long-term. Additionally, rental property owners are responsible for paying property taxes to the government as well as claiming the income you receive less rent expenses. It is important to understand the positive and negative effects of being a rental property owner and using these tips and tricks to become a productive and successful property owner.

With rental properties we need to be aware that in many cases you may be allowed to deduct items such as:

  • Travel and vehicle expenses provided you own more than one rental property

  • Capital expenses

  • Repair and maintenance

  • Insurance premiums

  • Utilities

  • Mortgage interest

  • Property taxes

Items to be aware of that can cause problems in the future include:

  • If you rent out a portion of your home, be careful about the portion of expenses you claim as it could jeopardize the principal residence exemption on the property.

  • Many people claim depreciation on their rental properties. This could lead to a potentially large tax bill upon the sale of the property.

 

Let Numbers Plus provide you with the knowledge needed to be a successful rental property owner. 

Rental Property Tax Deductions
 
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Investors
Investors Tax Returns & Deductions

Capital gains, dividends, interest and foreign tax credits can be challenging. There are also complex rules within the income tax act that when navigated properly can lower the tax burden (i.e. stock options, allowable business investment losses, capital gains exemption). 

Knowing which investments attract less tax and what can be used as deduction for tax purposes is equally significant (i.e. investment loans). When investing, avoiding unnecessary complications with the CRA is advisable. 

 

If you have investments jointly with others, it is advisable to have the taxpayers returns prepare together.

Let our professionals prepare your returns, deal with the CRA and most importantly, provide you with options for smart investment choices.

 
Tax Planning
Tax planning services

The undertaking of legitimate transactions or arrangements with a view to defer or minimize the payment of taxes.  Depending upon your situation one or more tax planning opportunities may be reasonable.  Common tax planning transactions include, but are not limited to:

  • Tax deferred sale of certain assets to a corporation (a section 85 rollover)

  • Recapitalization of a corporation to minimize punitive taxes such as tax on split income “TOSI”

  • TFSA versus RRSP

  • Salary versus dividend compensation

  • Division of assets in a tax deferred manner (so called Butterfly transactions)

  • Family Trusts

Let us take the guesswork away and develop a tax planning strategy for you.

Tax Planning Services
 
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Deceased Taxpayers
Taxes as a result of death
 

Whether someone has recently passed, or your are putting your own affairs in order, it is advisable to work with both your lawyer and your tax accountant.

The tax rules that apply when someone has passed can be quite complex and need to be attended to carefully.  There may be many tax returns that need to be prepared, or just one.  

To ensure the Estate is properly positioned to minimize the tax and probate fees that may apply, it is always advisable to hire Numbers Plus as soon as practical.