Key People Contracting
Ste 1017, 7620 Elbow Drive SW T2V 1K2 Calgary, AB, Canada

Well it looks like the tax changes for small business are going through as amended. We are still keeping an eye on the "income sprinkling ". If your company has an October year end - now is the time to ensure you have all your book keeping in to your bookkeeper. If you have a small business or a sole proprietor and need book keeping done, please feel free to call us here Calgary. We will be happy to discuss your needs.

Small business alert. The major changes to the punitive small business tax proposed by the Liberals has been watered down. A couple of items still remain that are cause for some concern. One is the issue of what they call "income sprinkling". The new rules will require a confirmation that a shareholder receiving dividends be able to prove they actively work in the business. While this has some merit it is at the discretion of the CRA auditor as to how they interpret each case. This is of importance to family owned and run businesses. Current existing Passive investment inside a company is grandfathered , but going forward there will be a restriction of $50,000.00p/a maximum. Extra will not be capital gains exempt.

There is a growing recognition that the small business tax changes being proposed by the Liberals is going to irretrievably hurt this country. Keep talking to your MP's. Make sure you talk to your friends and colleagues who own small businesses. A good information site for you to look at is

Tips: if you are a small business owner you need to educate yourself on the sweeping changes to the small business tax rate. We have until October 02 to send in comments to the Govt. If you need information go online to the Canadian Tax Payers Assoc website. Or the Canadian Federation for Independent Businesses web site. Or contact us.

Tips: When you hand in your monthly bank and Credit card statements for book keeping to be entered, make sure you tell the book keeper the details on all entries to make sure the details on your expenses (like purchases) and payments made by email transfer or direct transfer are captured properly in your books. The slogan being "Book keepers and accountants can read numbers but not minds".

Tax time is over unless you are a sole proprietor. You can file until 15 June. But you need to have paid what you estimate you by April this year. Preferably as a new sole proprietor you make monthly instalments to your tax account. When you file CRA and get the NOA you will see they tell you how much and how frequently you need to make instalments for the upcoming year.

At the PBR Bull Busting at Ranchmans on Tuesday night for the kick off to Stampede

Travelled up to Edmonton today calling on clients. Terrible road conditions -flat tire -you name it. But this brings to mind to put out the reminder to keep your mileage logs for your vehicles. If you use a personally owned vehicle for your business you have to submit mileage logs every month. If your business actually owns the vehicle then you must do mileage logs for a minimum of 4 months of the year and monthly for the first year to establish the base line usage.

Early winter weather here in Alberta. It is only September and the furnaces are kicking in! For those of you who have corporations in Canada with a financial year end of July or August it is time to get your book keeping in so your corporate taxes can be filed. If you know of anyone who needs help tell them about us. If you are behind the eight ball and are late getting your book keeping done, give us a call.

Summer is nearly over and the kids are back in school. We are happy to help you get your small business books in order and your taxes filed for you. Tips, hints and new information are key to your success - call us.

Take some time out to sort your book keeping items during the summer. Saves the panicky feeling when the lazy days end and we all hit the ground running. Call us for info on how we can help you to stay on top of your company administration.

Personal tax time is upon us again. One item in particular among a few demands attention. If you sold your Principal Residence LAST year (2017) you must enter the house description, and year of acquisition on line 4 schedule 3 then check the applicable box at the bottom of the schedule and include a completed T2091 ( or (T2155 for legal representatives) with your return. This requirement applies where there is a deemed disposition e.g. where you add a child's name to effect a joint ownership arrangement. Make sure you bring the 2017 sale of your principal residence to the attention of your accountant when you do your taxes.

Now is the time the most busy small business owners start thinking about personal finances. If you are taking dividend income from your company remember to consult your Personal Notice of Assessment from 2016 to ensure that you do not over contribute to RRSPs. T5 income does not increase your RRSP contribution room. If you have no more RRSP room think about using a TFSA. You can call us anytime if you need help with your small business management.