J-MAK CPA
111 Queen Street East, South Building M5C 1S2 Toronto, ON, Canada

The last day to contribute toward the 2020 RRSP limit is approaching on March 1, 2021. Learn about tax planning opportunities using RRSP to reduce your tax liability for current and future years. https://jmakcpa.com/five-tax-planning-strategies-using-rrsp/

Have you applied for the expanded CEBA loan? Eligible businesses and NFPs who have received the original $40K CEBA loan can now apply for the additional $20K loan. Applications are open through your financial institution. All applicants have until March 31, 2021 to apply for the entire $60K or the additional $20K CEBA loan. CEBA provides loan of up to $60,000 to eligible small businesses and NFPs. Of this, 1/3 (up to $20K) is forgivable if you repay the balance by Dec 31, 2022. There is no interest on the loan until this time. If loan is not settled by Dec 31, 2022, the outstanding balance carries annual interest rate of 5% and is payable in full by the end of 2025.

As per CRA, failure to file T3010 is the most common reason for revocation of charity registration. This year, Dec 31 marks the due date for filing T3010 for charities whose fiscal year ended in June as well as charities that were given an extended deadline as a COVID-relief measure. If you have not already filed T3010, now is a good time to start preparing the charity return. https://jmakcpa.com/filing-t3010-why-should-a-charity-both/

Available to businesses, NFPs and charities, Canada Emergency Rent Subsidy (CERS) will provide a subsidy of up to 65% + additional lockdown support of 25%, if applicable

https://www.huffingtonpost.ca//house-price-index-canada_ca

At J-MAK CPA, we aim to be ‘Your trusted business partner’. These few words form the cornerstone of our corporate philosophy. Our dedicated teams work with clients to establish and develop a relationship of trust and growth. Embodying this philosophy, our corporate culture thrives on customer care and service where collective effort is focused toward creating meaningful client experiences. Beside the personal attentiveness to each client, we use our technical proficiency to p...rovide clients with useful and compliant strategies that place them ahead of the game. Our expertise lies in the following areas of service: -Tax planning and compliance -Accounting and reporting -Corporate services -Advisory

Effective tax planning for individuals requires a certain level of groundwork. It cannot follow a ‘one size fit all approach’. Here are some tax planning tools available to individuals. https://jmakcpa.com/effective-tax-planning-for-individuals/

Tax planning tip for October: Consider investing into a TFSA! Money deposited into a TFSA can grow on a tax-free basis, and no tax is payable when you withdraw that money or your earnings. TFSA provides an effective tax planning tool for low- and modest-income earners since they can earn investment income within TFSA without reducing or becoming disqualified for government benefits and credits that are linked to their income level.

Tax planning tip for October: Consider investing into a TFSA! Money deposited into a TFSA can grow on a tax-free basis, and no tax is payable when you withdraw that money or your earnings. TFSA provides an effective tax planning tool for low- and modest-income earners since they can earn investment income within TFSA without reducing or becoming disqualified for government benefits and credits that are linked to their income level.

Due date for income tax payment is approaching - Sep 30 marks the end of extension allowed by CRA for payment of income tax for 2019 and installment payments in 2020.

CECRA has been extended for the month of September; provides forgivable loans to landlords for 50% of rent payable by eligible small business tenants for April-September. Current CECRA application deadlines will also be extended to accommodate this extension.

Deadline for small businesses to apply for the interest-free, partially forgivable $40K loan under CEBA has been extended to Oct 31. The government has also reiterated its plan to make CEBA available to those who do not operate a business banking account.

CEWS applications under the revised rules will be accepted from August 17. Subsidy rate varies depending on how much revenue has declined - Employers with a revenue drop of less than 30% still qualify while those with a more severe reduction can claim a higher subsidy amount.

Employers eligible for the 10% temporary wage subsidy are required to submit a self-identification form to CRA. The subsidy is 10% (or a lower %age if so elected) on salaries paid from Mar 18 - Jun 19, up to $1,375 per eligible employee and up to a maximum of $25,000 for each employer.

CECRA has been extended for the month of August; provides forgivable loans to landlords for 50% of rent payable by eligible small business tenants for April-August. Existing applicants can opt in for July and August through CMHC website. New applicants can apply for July and August extension as part of their application.

Payment deadline for income tax extended up to Sep 30 - applies to 2019 individual tax returns and 2019 or 2020 corporation or trust returns, as well as to installment payments.

CRA has waived interest on existing income tax debts from Apr 1-Sep 30, 2020 and for GST/HST from Apr 1-Jun 30, 2020. This means that if you have an existing tax debt, it will not continue to grow through interest charges over this period.

Have you applied for the $40K CEBA loan? As a small business, you may be eligible for the loan of up to $40,000, of which 25% (up to $10,000) is forgivable if you repay the balance by December 31, 2022. There is no interest on the loan until this time. Find out if you may be eligible to apply for CEBA. https://jmakcpa.com//have-you-applied-for-the-40k-ceba-lo/

Manitoba has deferred, until further notice, the previously announced (i) sales tax rate reduction from 7% to 6%, (ii) introduction of a green levy, and (iii) tobacco tax rate increase that were otherwise to take effect from July 1, 2020. The sales tax rates across Canada as of July 1, 2020 are as follows.

The 75% Canada Emergency Wage Subsidy has been extended up to Dec 2020 to provide businesses the financial support in keeping their employees on payroll. It is expected that eligibility criteria changes will be coming soon.

The government has removed the requirement to claw-back insurance proceeds and provincial rent supports from forgivable loan amount of CECRA for both existing and new applicants. Existing applicants will be notified by CMHC and will have any previously clawed-back amounts restored to their forgivable loan.