2014 Tax Newsletter

A new tax season has officially started and included in this newsletter are tax updates and tips to have your 2014 taxes completed stress-free!

2014 CRA UPDATES

Great news for Parents!
A number of new tax-saving initiatives have been announced for 2014 that save money for parents:

  • Family Tax Credit – A benefit of up to $2,000 for families that have kids under 18 and for parents who have different levels in income
  • UCCB (Universal Childcare Benefits) are being increased for children under 6 (+$720 additional) and is now expanded to include kids 17 and under.
  • Children’s fitness tax credits are increased to $1,000 (prev. $500)
  • Child Care Expense Deduction has been increased by an additional $1,000
2014 TAX DEADLINES
Personal:
RRSP Contribution Deadline: March 2, 2015
Personal/Self-Employed Tax Return Deadline: April 30, 2015

Incorporated Businesses:
Dividend(T5)/Salary(T4) Issuance: Feb 28, 2015
GST/HST Return Deadline: March 30, 2015
Corporation Returns: June 30, 2015

SCHEDULED A MEETING YET?

Already have all your files in order?
Let’s set up a time and get working.

Third-party issued tax slips (i.e. donation slips, investment slips (T5), T4, etc.) are due at the end of February. That means you will get them latest the first week of March. We can meet up any time after that.

2014 dwm Accounting Referral Gifts

As always, your kind words and referrals are the greatest compliment you can give me. For the 2014 tax year (ending April 30, 2015) I will be giving out the following gifts to thank those of you who have been integral to dwm’s growth! Gifts include an iPad, Dinner Packages & Vintage Wines/Craft Beers.

See link for details: http://dwmaccounting.ca/2014-referrals/

Tax Tip: Meals & Entertainment

Was that a business meal?

Business tax deductions including Meals & Entertainment, Personal Vehicle or Office-in-the-Home often make up a small portion of your tax return, however, are known to be some of the top triggers of CRA reviews or audits. Misconceptions among the business-owner community run high – the result of business owners and even some accountants thinking of these as more ‘grey’ areas than their actual black & white nature.

M&E expenses can be claimed for business purposes when they occurred as a result of your efforts to earn income. This would include costs when meeting with a client/supplier to ‘win’ their business, or even as a thank-you for their business. Coffee or food paid for while meeting with a business mentor that provides you with valuable knowledge or information to help you advance in your field qualify as well. Unfortunately, despite how great of a business inspiration your spouse may be, meals with that special someone would quickly be frowned upon by the CRA. The same thought extends to normal lunches you pay for while ‘on-the-job’ – Just because you happen to buy food during a normal working day, without a business interaction during that meal, it would not qualify for a business deduction.

I always advise clients to write on the back of meal receipts whom they met with and even a few key points of discussion. Receipts with information such as this are significantly more credible during a CRA review & audit and act as a great reminder to yourself come tax season when organizing your receipts.

Registering for Online Access

Have you registered to access your CRA information online yet?
Having online access allows you to check up on your tax return status and retrieve electronic copies of any correspondence with the CRA. Even better, add dwm Accounting as a Representative, and I will be able to easily access, review and submit documents to make your taxes as stress-free as possible!

To register for CRA Online Access, visit:
http://www.cra-arc.gc.ca/MyBusinessAccount (if you have a 9-digit CRA Business#) or
http://www.cra-arc.gc.ca/myaccount/ If you do not have a registered business #
You will be asked to verify data from your previous tax return while registering. Once completed, you will be sent an access code via mail. You will not be able to finalize registration until receiving this code in the mail.

To add dwm Accounting as an account representative:
Once registered, log in.
On the left hand column, click the link “Representatives”
Select “Authorize a Representative”
Input the business number: 83772 5993
Complete the process & let me know to confirm on my end.

I look forward to speaking with you soon! – Derek W Ma, CPA, CA  ◦  (905) 940 4580  ◦  derek@dwmaccounting.ca