Canada Revenue is in an endless chase to tax the underground economy. One of its newest methods is the lifestyle audit. This type of audit was first used to audit people in the drug trade. Now it is being used to go after the underground economy that exists in our construction and trades industry.

Canadian Tax Law allows a capital gains exemption on the sale of shares of a Canadian Small Business. This exemption is 800k plus depending on the year of sale. This is a huge benefit to the business owner who is looking at retirement through the sale of his business. On the sale of the shares in his business the first 800k is not taxed.

To be eligible there are certain rules that must be followed. The one that causes a lot of grief is what we call the “ 50/90 rule ‘. This rule states that during the two years before the sale of the company at least 50% or more of the company’s assets must have been used for the normal operation of the company. At the date of sale 90% of the assets must be used for the normal operation of the company.

Proactive Accountants Inc. wishes you and your family a wonderful Holiday Season and a happy, healthy, and peaceful New Year 2022!

Real Time Accounting will change the way small businesses are managed.

What is Real Time Accounting?

Why You Should Choose Proactive Accountants Inc.There are many complicated financial tasks involved in growing a small business, like balancing books, managing finances, and making sure taxes are calculated and filed accurately. Catering to these aspects of business can take up a significant amount of time and resources. Moreover, ensuring that they are managed optimally can be quite challenging due to the ever-changing guidelines and laws. In such situations, enlisting the services of an accounting company can help you accomplish your accounting and tax necessities with ease.!

In the initial days of the COVID-19 pandemic, there were a lot of changes that were taking place, and most companies and businesses were not sure how they were going to keep up. People were no longer allowed to travel around, so most companies started making changes to allow for remote working and online, virtual meetings. The changes meant a significant decrease in productivity, but there was nothing much that companies could do other than waiting for things to start getting better before they could get back to the way things were.

The B.C. Government has released more details on its Recovery Grant program for small business. One time grants of $10,000 to $ 30,000 are available for approved applicants up to march 31, 2021.

One of the benefits of being an owner or executive for a company has been having the use of the company car. For years it was a wonderful benefit basically ignored by our tax system. It has now become a tax trap for the users of these vehicles. Canadian tax law says that the use of a company owned vehicle is a taxable benefit to the user. The user of a company car should calculate the annual taxable benefit of the car and put it on his/hers T-4. It will then be taxed at the top marginal rate of the taxpayer.

Due to the Covid pandemic, the Canada revenue Agency has made some tax changes to the home office expenses allowed on personal tax returns. Many taxpayers can now use a simplified method of claiming these expenses on their personal tax return.

We are delighted to announce the launch of our new website!

New Website Coming Soon!