• Canada Post Service Disruption

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    While there is still time to reach new agreements, Canada Post has advised that its customers should take precautions as a labour disruption remains a possibility in early July 2016. In the event of a full labour disruption, Canada Post will not operate. Mail and parcels will not be delivered, and no new items will be accepted. Any mail and parcels within the postal system during a work disruption will be secured and delivered as quickly as possible once operations resume. With this potential in mind, Reid Hunter advises that payments for any and all accounts can be made via email…

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  • Canada Revenue Agency Phone Scams

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Scam artists, posing over the phone as Canada Revenue Agency officials, have been very active recently. We have received a number of phone calls from clients. These individuals are trained and skilled at preying on your fears. The caller will usually supply a phony name and a made-up badge number. They may even have your social insurance number. They will often say there was a problem with your return, and that they need you to follow a specific set of instructions in order to correct the error. If the CRA was actually starting collection action against you, you would have already…

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  • Trades persons tool expenses

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    If you are an employed trades person you may be entitled to a tax deduction for the cost of new tools used in carrying out your employment duties. For 2014 the amount you can claim is equal to the cost of the new tools in excess of $1,127 that your required to purchase as a condition of your employment, subject to a maximum claim of $500. An eligible tool is a tool (including associated equipment such as a toolbox) that: You bought to use in your job as a trades person and was not used for any purpose before you bought it; Your…

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  • Donations – personal or corporate?

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Small business owners often wonder if their charitable donations should be paid in the corporation, or donated personally. Below is a quick summary, followed by more detailed examples. Essentially: If it’s a private corporation with active income, then it’s probably best to donate personally as you are likely in a higher tax bracket than the small business, and it will give you a higher tax deduction. If you need to pull salary out of the corporation in order to make the donation personally, its likely that you would be better of making the contribution in the corporation. If you need to pull dividends from the…

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  • CRA offers online payment service

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    My Payment is an electronic payment service offered by the CRA that uses Interac® Online to allow individuals and businesses to make payments directly to the CRA from their online banking account. Use this service to make payments to one or more CRA accounts, from your personal or business account, in one simple transaction. You can use My Payment if you have an online banking account at the following financial institutions that currently participate in Interac Online: BMO Bank of Montreal (personal accounts only) Scotiabank RBC Royal Bank TD Canada Trust Envision Financial Libro Credit Union The MyPayment system may be unavailable from midnight to 3 AM PST due…

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  • 2014 personal tax season

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    It may seem early to start thinking about your 2014 taxes however our goal at Reid Hunter is to provide you with valuable information to make the process as seamless as possible. We have prepared a checklist to assist you in identifying the major sources of income and deductions. Information slips (ie: T4’s and T5’s) should be received by the end of February, however some investments slips (ie: T3’s and T5013’s) may not be received until the end of March. Canada Revenue Agency is becoming more diligent in imposing penalties for slips not reported. If you miss reporting two slips in a…

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  • Horizon Business Awards

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    The Powell River Chamber of Commerce hosted its 20th annual Horizon Business Awards recently. Reid Hunter was nominated in the Professional Services category and we are very proud to announce we placed first in our category. Many thanks to everyone who voted for us, and in particular to all our wonderful clients in our community and beyond. The Powell River Peak published an article this week. Thanks again to everyone involved and the Powell River Chamber of Commerce for a great event.

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  • Is your business healthy?

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Although it would seem apparent when a business is struggling, some of the more obvious signs are often overlooked. The foundation of every company is in the management of its cash flow. A brief examination of some key financial reporting signs will go a long way in keeping your business healthy. Revenues Are your revenues decreasing or not meeting budgeted expectations? This is probably the most obvious indicator yet the trend can be overlooked, particularly if billings are not completed on time. Revenue under expectations may be attributed to unbilled work or other timing problems. These results are often accompanied with comments…

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  • Moving expenses

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    The deduction for moving expenses is potentially available in most situations where an individual moves to a new work location (this is still available even if you remain with the same employer) or to attend a post-secondary institution full-time – and is available by both employees and independent business people. Moving must bring you at least 40 kilometers closer to your new place of work or school. The minimum distance is the shortest route normally open to the public and includes ferries and rail lines (where applicable). Form T1-M is filed with your tax return which details a number of important deductions: The…

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  • Automobiles, what are my choices?

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    It’s time for a new vehicle that I will use in my business. What are my choices? This is one of the most common questions we receive. Business related automobile reimbursements can be very beneficial to both employers and employees. Unfortunately the tax authorities have something else in mind: ensuring employees and owners do not receive personal tax–free benefits. Should I buy or lease my vehicle, and should it be purchased personally or in my business? From an income tax perspective, if you are eligible to deduct car expenses from your business or employment income, the deductions over time are essentially the same…

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  • Comox Valley expansion

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Reid Hunter is proud to announce our expansion into Courtenay and the Comox Valley. Effective January 1, 2014 we will assume operations from Mr. Ken Ritchie of Comox Valley Accounting (CVA). CVA has been in business for many years and we look forward to continuing to serve our new clients in the local community. Our office is located at 362A, 10th Street in Courtenay. We are pleased to offer full services and invite new corporate and personal clients. During November and December, we will service our new and existing Comox Valley clients with weekly partner visits to the area. Appointments are…

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  • Capital gains exemptions

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Most business owners are aware that up to $750,000 of capital gains on the sale of the shares of their company are eligible for a capital gains exemption. Fewer people will be aware of the many restrictions and requirements that will prevent a taxpayer from taking advantage of the exemption which include asset tests, holding period tests and restrictions on sale to related parties. If a company holds investment assets or other business assets to be excluded from a sale, removing these assets from the mix can be costly. Getting all the vendors onside can be problematic. If a vendor has…

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  • Medical expenses

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    You may claim a credit for medical expenses that you paid for yourself, spouse or common-law partner and minor children. These expenses can be claimed to the extent that they exceed 3% of your net income. You may also claim medical expenses that you paid for “other dependants” such as a children 18 years of age and older, a grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew. Medical expenses paid for other dependant relatives must first be reduced by 3% of that dependant’s net income. The maximum amount that can be claimed for each other dependant is $10,000. For…

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  • Registered Education Savings Plans (RESP)

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    A Registered Education Savings Plan (RESP) can be established with one or more individuals set up as beneficiaries under the plan. Although the individual subscriber cannot deduct contributions for tax purposes, any income earned within the plan is taxed in the hands of the beneficiaries, once distributions are made. There is no annual limit for contributions to RESPs but there is a lifetime limit of $50,000 for each beneficiary. To assist with education costs, the government provides an annual Canada Education Savings Grant (CESG) for children under the age of 18. The amount of the CESG is based on RESP contributions…

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  • TFSA dollar limit for 2013 – $5,500

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    In 2009 and subsequent years through 2012, the TFSA dollar limit was $5,000 per year. When the 2013 indexation increase of 2% is applied to the cumulatively indexed (since 2010) TFSA dollar limit and the result is rounded to the nearest $500, the TFSA dollar limit for 2013 increases to $5,500. In 2009, the federal government introduced a savings vehicle called the tax-free savings account (TFSA). The TFSA allows Canadian residents who are 18 years of age or older with a valid Canadian social insurance number to set money aside tax-free during their lifetime. Contributions to a TFSA are not deductible for…

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  • Are you 65 or older?

    Reid Hunter |

    Bookkeeping Services Courtenay, British Columbia

    Did you know? There are several benefits and credits designed for seniors. Important information for seniors Age Amount – You can claim this amount if you were 65 years of age or older on December 31, 2012, and your net income is less than $78,684. The maximum amount you can claim is $6,720. Pension income amount – You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on your return. Pension income splitting – If you’re receiving a pension, you may be eligible to split up to 50% of your eligible pension income with your spouse or…

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