Inclusion rate

Inclusion rate is the rate used to determine taxable capital gains and allowable capital losses. For example, if the inclusion rate is 1/2 (50%), you multiply your capital gain for the year by this rate to determine your taxable capital gain. Similarly, you multiply your capital loss for the year by 1/2 to determine your allowable…

What transit pass is qualified for public transit tax credit?

The key is that the pass should provide for unlimited travel. Monthly (or longer duration) passes are normally eligible. For shorter duration passes, to qualify, the passes must entitle you to unlimited travel for an uninterrupted period of at least 5 days and for at least 20 days in any 28-day period.

What to do if you over deduct CPP

As an employer, in some cases, you may over deduct Canada Pension Plan (CPP) contributions. For example, you forget to stop withholding CPP contributions after the maximum amount of pensionable earnings was reached. What should you do? There are two solutions to this problem.

Who has to file T5013 – partnership information return

Starting from 2011, a partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a T5013 – partnership information return for each of its fiscal Period if the partnership:

Limited partnership

A limited partnership is a partnership that gives its partners limited responsibilities that are similar to those given to shareholders of a corporation. 

Important dates for self-employees

If you are a self-employee operating a unincorporated business either as a sole proprietorship or partnership, here are the important dates to remember.

What information should be on a business expense receipt

When you buy something for your business, you should always get receipts or other vouchers. To be eligible for tax deduction, the receipt for the merchandise or services you buy should show the following information: the date of the purchase; the name and address of the seller or supplier; the name and address of the…

Cash method of accounting

Under cash method of accounting, you report income in the fiscal period you receive it and deduct expenses in the fiscal period you pay them.