Awerix CPA Professional Corporation
Unit 210, 2 Jane St M6S4W3 Toronto, ON, Canada

Merry Christmas to you all. Warmest wishes for this holiday season.

Merry Christmas to you all. Warmest wishes for this holiday season.

Tax Tip of the week If you own a business or rental property, 1. Consider paying a reasonable salary to family members for services rendered. Examples of services include website maintenance, administrative support, and janitorial services. Salary payments require source deductions (such as CPP, EI and payroll taxes) to be remitted to CRA on a timely basis, in addition to T4 filings. 2. If you made a capital asset purchase this year, please ensure that the payment is paid i...n 2020. Most capital assets purchased in 2020 will be eligible for accelerated depreciation (generally three times the deduction to which they would normally be entitled in the first year). For example, a piece of equipment normally eligible for a 10% deduction in the first year (Class 8), would be entitled to a 30% deduction. This benefit is available even if purchased and made available for use just before year-end. See more

Merry Christmas to you all. Warmest wishes for this holiday season.

Income tax is a big-ticket item for most retired Canadians. Especially for those who are no longer paying a mortgage, the annual tax bill may be the single biggest expenditure they are required to make each year. Fortunately, the Canadian tax system provides a number of tax deductions and credits available only to those over the age of 65 (like the age credit) or only to those receiving the kinds of income usually received by retirees (like the pension income credit), in order to help minimize that tax burden. And, in most cases, the availability of those credits is flagged, either on the income tax form which must be completed each spring or on the accompanying income tax guide. http://www.risdonca.com/newsletters.html