Just for Dentists Newsletter
The Federal Budget 2023 in a Nutshell (3/31/2023) - The 2023 federal budget was released with great anticipation for some possible harsh tax measures to counteract previous government over spending. However, with a projected federal deficit of over $40 billion it seems the government is keen to double down on its policy of spend now and let the future… Continue Reading
The Tax Season is Here! (3/14/2023) - In order to get a head start on tax filing, below is a list of information that may be required to complete your 2022 personal income tax returns: T4 Employment Income slips T4A Other Income slips T4A BCMA slip T4A(P) Canada Pension slip T4A(OAS) Old Age Security Pension slip T4RSP/RIF… Continue Reading
Measuring practice performance (3/14/2023) - Imagine for a moment you are driving a car with no GPS to direct you, no instruments to tell you the speed and no fuel gauge or indicator light warning you the engine is running out of oil. It is unthinkable; you would never get into a car without an… Continue Reading
Are your investments down? Good time for an estate freeze! (3/14/2023) - What is an estate freeze? An estate freeze refers to transferring the future growth of your corporate investments into your children's hands. An estate freeze limits the value of your estate reflected in your corporate holdings when the freeze is implemented. Accordingly, capital gains and other tax exposure on the… Continue Reading- File Your Underused Housing Tax Form Before April 30 To Avoid $10,000 Penalty! (3/14/2023) - The Federal Government has finally jumped on the band wagon of requiring certain property owners to declare the use of their property. Some may be familiar with the Empty Homes Tax (city of Vancouver) or the Speculation Tax (province of BC). Now it’s the Federal Government’s turn to require annual… Continue Reading
- Buying a practice: Due Diligence Audit (3/9/2023) - Financial Review Ask your CPA (choose one with experience in dental practices) to obtain copies of the tax returns and financial statements for the clinic’s previous four years. Use these to identify revenue and expense trends. Ask your CPA to prepare cash flow projections and recommendations regarding reducing clinic overhead.… Continue Reading
- Selling Your Practice Tip: Increase Revenues — Don’t Slow Down Just Because You Are Selling (3/9/2023) - Buyers will not care how much revenue you made over the past 15 years. They, and their advisors, will focus on your last few years’ gross revenue, net profit, and positive cash flow. More importantly, they will show special interest in the practice’s current year. What matters most is how… Continue Reading
- The “Surplus Strip”: Income Split with your Family (3/9/2023) - Many dentists are taking advantage of a tax strategy of converting the regular dividends from their corporations into a capital gain generating huge savings. To illustrate, the capital gains tax on $200,000 of income from the corporation is about $22,500, compared to a tax of $54,400 on dividend income. A… Continue Reading
- Multiply the Capital Gains Exemption (3/9/2023) - You cannot start too soon getting prepared for the eventual sale of your practice. Currently there is $971,000 of the capital gains exemption available per individual. However, as many practice sales exceed this price having one dentist as the only shareholder will cause taxation above this limit. You will need… Continue Reading
The Government’s Inflation Adjustment Means Big Tax Savings for 2023 (2/6/2023) - The federal government’s annual indexation adjustment for personal income tax and benefits, which is based on the rate of inflation, will be 6.3% for 2023, compared to 4% in 2022 and 1% in 2021. You can earn $53,359 in 2023, compared to $50,197 in 2022 before being subject to the… Continue Reading
Just for Doctors Newsletter
- The Federal Budget 2023 in a Nutshell (3/31/2023) - The 2023 federal budget was released with great anticipation for some possible harsh tax measures to counteract previous government over spending. However, with a projected federal deficit of over $40 billion it seems the government is keen to double down on its policy of spend now and let the future… Continue Reading
Making your home mortgage tax deductible (3/14/2023) - If you have faced the unpleasant task of renewing your mortgage, you will undoubtedly have experienced the significant impact of the higher mortgage payment on your household budget. The mortgage interest rates have generally increased from about 3% in 2021 to 6% today. It means you will pay an additional… Continue Reading- File Your Underused Housing Tax Form Before April 30 To Avoid $10,000 Penalty! (3/14/2023) - The Federal Government has finally jumped on the band wagon of requiring certain property owners to declare the use of their property. Some may be familiar with the Empty Homes Tax (city of Vancouver) or the Speculation Tax (province of BC). Now it’s the Federal Government’s turn to require annual… Continue Reading
- The Tax Season is Here! (3/14/2023) - In order to get a head start on tax filing, below is a list of information that may be required to complete your 2022 personal income tax returns: T4 Employment Income slips T4A Other Income slips T4A BCMA slip T4A(P) Canada Pension slip T4A(OAS) Old Age Security Pension slip T4RSP/RIF… Continue Reading
The First Home Savings Account (FHSA). What you need to know. (2/6/2023) - Starting in April 2023, the new First Home Savings Account will allow prospective homeowners at least 18 years of age to save up to $40,000 for their first home. You can contribute up to $8,000 each year to the FHSA. You must use these funds within 15 years of opening… Continue Reading- The foreign buyers’ ban on purchasing Canadian real estate (2/6/2023) - Starting January 1, 2023, non-Canadians and non-permanent residents will be prohibited from purchasing residential property in Canada for two years. The Act will be repealed on January 1, 2025. The new law does not apply to commercial real estate. You would expect the ban to cover all the residential real… Continue Reading
- The Government’s Inflation Adjustment Means Big Tax Savings for 2023 (2/6/2023) - The federal government’s annual indexation adjustment for personal income tax and benefits, which is based on the rate of inflation, will be 6.3% for 2023, compared to 4% in 2022 and 1% in 2021. You can earn $53,359 in 2023, compared to $50,197 in 2022 before being subject to the… Continue Reading
The new Canada Dental Benefit Plan (12/19/2022) - The Canada Dental Benefit (CDB) provides eligible parents with up to $650 tax-free, per year for 2 years, to pay for dental expenses for children under the age of 12. The plan is available exclusively to families who do not have access to private dental insurance. Depending on your adjusted… Continue Reading- Gift Cards Now a Tax-Free Treat for Your Staff (12/19/2022) - Just in time for Christmas, CRA introduced a new policy on gifts and awards. CRA’s previous policy was that the first $500 of annual gifts and awards would be considered non-taxable benefits, however it would not apply to cash or near cash gifts. In the past CRA had considered all… Continue Reading
Exchange-traded funds (ETFs) are ideal for the tax loss-selling investor (12/19/2022) - Many investors love ETFs because of their low cost and liquidity. The ETFs are also suitable for those who engage in tax loss selling. Losses on the sale of ETFs are treated like losses on share sales, generating capital losses. However, when you sell shares at a loss, CRA imposes… Continue Reading
