Tag: Edmonton Alberta Bookkeeping Services

Categories
Accounting Alberta Bookkeeping services Canada Virtual Accounting Firm Edmonton Alberta Bookkeeping Services Incorporate Sherwood Park Accountants Payroll Accounting services in Alberta Professional Tax Accounting Services Edmonton & Sherwood Park Alberta Small Business Accounting and Taxes Services in Edmonton Alberta Tax

Edmonton Virtual Accounting Firm Services

 Edmonton Virtual Personal Tax Accountant

BOMCAS LTD Providing Virtual Accountants and Accounting Services Across Albertan and Canada. We are Edmonton Top Accounting Firm, Edmonton tax experts. We are dedicated to remaining current with the constantly changing Canadian tax laws. We take the time to understand the unique situation of each of our clients in our service areas of Sherwood Park, Edmonton and surrounding communities, and ensure they are following the latest Canadian tax laws, while paying the least amount of tax possible.

  • Individual Canadian Tax Return Preparation and filing
  • Personal Tax Planning
  • Immigration and Emigration Tax Planning
  • T3 – Trust Income and Information Return
  • Final Income Tax Returns for Deceased Taxpayers
  • Estate Planning
  • Voluntary Disclosures for unreported income or information forms not filed

 Edmonton Virtual Corporate Tax Accountant Services

BOMCAS Virtual Accounting Services we bring our tax accountant expertise to assist both domestic and multi-national corporations with services that include, but are not limited to:

  • Corporate income tax preparation and filing of returns
  • GST/HST compliance
  • Financial statement preparation
  • Tax dispute resolution consultations
  • Assistance with design & implementation of international tax programs
  • Payroll planning and remittance – domestic and cross-border
  • Tax treaty review

Edmonton Virtual Bookkeeping Services

We provide continuing bookkeeping maintenance in the background while you focus on your core business operations which helps making us into the top accounting in firm in the region.  As experienced bookkeeping and tax professionals, we’ll help you with all the data entry and bank reconciliations that are required, all on a remote basis. Contact us today and see how we can help you.

Edmonton Virtual Payroll Accountant Services

Our bookkeeping advisers provide Canadian payroll processing services for growing businesses, assisting in government remittances and year end T4 filings. With years of experience, our experts have the knowledge and expertise and qualification needed to handle any situation.

Categories
Accountant in the Park Accounting Alberta Bookkeeping services Canada Virtual Accounting Firm Edmonton Alberta Bookkeeping Services Incorporate Sherwood Park Accountants Other Accounting Services Small Business Accounting and Taxes Services in Edmonton Alberta Tax Tax Accountant Sherwood Park Tax Preparation Sherwood Park YEG ACCOUNTANT

Virtual Bookkeeping Business & FARMERS AND FISHERS

We provide continuing bookkeeping maintenance in the background while you focus on your core business operations which helps making us into the top accounting in firm in the region.  As experienced bookkeeping and tax professionals, we’ll help you with all the data entry and bank reconciliations that are required, all on a remote basis. Contact us today and see how we can help you.

Contact BOMCAS today and we will be happy to take care of your bookkeeping service virtually. Call 780-953-5250 or email info@bomcas.ca

Eligible capital expenditures – farmers and fishers

You may buy property that has no physical existence, but gives you a lasting economic benefit. Some examples include milk and egg quotas, goodwill, franchises, concessions, or licences for an unlimited time period. This kind of property is eligible capital property. The price you pay to buy this kind of property is an eligible capital expenditure.

As of January 1, 2017, the eligible capital property (ECP) system was replaced with the new capital cost allowance (CCA) class 14.1 with transitional rules. Under the old system, eligible capital expenditures are added to the cumulative eligible capital pool at a 75% inclusion rate, and the rate of depreciation of those expenditures is 7% on a declining-balance basis. Under the new system, newly-acquired eligible properties will be included in class 14.1 at a 100% inclusion rate with a 5% capital cost allowance rate on a declining-balance basis.

Property that was ECP will be depreciable property and expenditures and receipts that were accounted for under the ECP rules will be accounted for under the rules for depreciable property and capital property included in class 14.1.

On this page

Eligible capital expenditure

You may buy property that does not physically exist but gives you a lasting economic benefit.

This kind of property is eligible capital property. The price you pay to buy this type of property is an eligible capital expenditure.

We consider franchises, concessions, or licences with a limited period to be depreciable properties, not eligible capital properties. As of January 1, 2017, the eligible capital property (ECP) system was replaced with the new capital cost allowance (CCA) class 14.1 with transitional rules. For details on depreciable properties, go to Chapter 4 of guide T4002 , Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Annual allowance

You cannot fully deduct an eligible capital expenditure because the expenditure is considered to be capital and provides a lasting economic benefit. However, you can deduct part of its cost each year. We call the amount you can deduct your annual allowance.

CEC account

This is the bookkeeping record you establish to determine your annual allowance. You also use your cumulative eligible capital (CEC) account to keep track of the property you buy and sell. We call the property in your CEC account your eligible capital property. You base your annual allowance on the balance in your account at the end of your fiscal period. Keep a separate account for each business. Include all eligible capital property for the one business in the same CEC account.

Transitional rules – Undepreciated capital cost balance

Generally, the undepreciated capital cost (UCC) of the new class in respect of a business at the beginning of January 1, 2017 is equal to the amount that would have been the cumulative eligible capital (CEC) balance in respect of the business at the beginning of January 1, 2017.

Generally, the total capital cost of all property in Class 14.1 at the beginning of that day is deemed to be 4/3 of the total of the amount that would have been the CEC balance at the beginning of that day and past depreciation claimed that has not been recaptured before that day.

There are also rules for allocating total capital cost between goodwill property and each identifiable property in the new class that was an eligible capital property.

An amount is deemed to have been allowed as capital cost allowance before January 1, 2017, such that the UCC balance at the beginning of January 1, 2017 is equal to the amount that would have been the CEC balance at the beginning of January 1, 2017.

The determination of the total capital cost and the allocation of the capital cost of each property that was an eligible capital property before January 1, 2017 is relevant to the calculation of recaptured capital cost allowance and capital gain in respect of the disposition of such a property on or after January 1, 2017. It is not necessary to determine the total capital cost, or to allocate a capital cost to each property, to determine the amount that may be deducted.

Transitional rules – Deemed gain immediately before January 1, 2017

You may be able to include an amount in your income in a tax year that straddles January 1, 2017. The amount of the income inclusion, if any, is relevant to the calculation of the final CEC balance for the purpose of determining the total capital cost of the class. An income inclusion may be required if you receive proceeds in that tax year and prior to January 1, 2017, such that there would have been an income inclusion if the tax year had instead ended immediately before January 1, 2017. You may choose to have the income inclusion reported as business income or as a taxable capital gain.

An election to defer this income inclusion is available in a manner that is similar to the manner in which income inclusions could be deferred under the ECP rules. Where, on or after January 1, 2017 and in that tax year you acquired a property of the new class or you are deemed to have acquired goodwill, you may elect to reduce the income inclusion by up to half of the capital cost of the new property. In this case, the capital cost of the new property is then reduced by twice the amount by which the income inclusion is reduced.

Transitional rules – Dispositions of former ECP

Receipts related to expenditures incurred before January 1, 2017 cannot result in excess recapture when applied to reduce the balance of the new CCA class. Certain qualifying receipts reduce the UCC of the new CCA class at a 75% rate (the rate at which eligible capital expenditures were added to CEC). Receipts that qualify for the 75% rate are generally receipts from the disposition of a property that was an ECP and receipts that do not represent the proceeds of disposition of property. This is achieved by increasing the UCC of the new class by, generally, 25% of the lesser of the proceeds of disposition and the cost of the property disposed of.

Transitional rules – Non-arm’s length dispositions of former ECP

Although changes to the rules increases the UCC balance of the new class for, generally, 25% of the proceeds of disposition of property that was ECP before January 1, 2017, the new rules also prevent the use of non-arm’s length transfers to increase the amount that can be depreciated in respect of the new class. Generally, when you acquire a property of the new class, only 3/4 of the capital cost of the property is included in the UCC in respect of the class if the following conditions apply:

  • the property or a similar property was previously an eligible capital property of yourself or a person or partnership not dealing at arm’s length with the taxpayer
  • the UCC was increased in respect of an earlier disposition of the property or similar property by yourself or the non-arm’s length person or partnership

This effect is achieved by deeming you to have claimed CCA in respect of the new class equal to the lesser of 1/4 of the cost of the property acquired and the amount that was deemed to have been added to the UCC of the new class of yourself or another person or partnership.

For more information about the old ECP rules, see the 2016 version of this guide.

For more information on changes to the ECP system, go to Explanatory Notes – Eligible Capital Property.

Eligible capital property of a deceased person

When a person dies, we deem that the person has disposed of all capital property right before death. Also, right before death, we deem that the person has received the deemed proceeds of disposition. For more information, go to Deemed disposition of property.

Partnerships

A partnership can own eligible capital property and ask to deduct an annual allowance for that property. Any income from the sale of eligible capital property the partnership owns is income of the partnership. For more information about eligible capital expenditures, go to Chapter 5 of guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Forms and publications

Related links

Original Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/farmers-fishers/eligible-capital-expenditures-farmers-fishers.html

Categories
Accounting Alberta Bookkeeping services Edmonton Alberta Bookkeeping Services Incorporate Sherwood Park Accountants Small Business Accounting and Taxes Services in Edmonton Alberta Tax

Virtual Bookkeeping Business

We provide continuing bookkeeping maintenance in the background while you focus on your core business operations which helps making us into the top accounting in firm in the region.  As experienced bookkeeping and tax professionals, we’ll help you with all the data entry and bank reconciliations that are required, all on a remote basis. Contact us today and see how we can help you.

Contact BOMCAS today and we will be happy to take care of your bookkeeping service virtually. Call 780-953-5250 or email info@bomcas.ca

Eligible capital expenditures – farmers and fishers

You may buy property that has no physical existence, but gives you a lasting economic benefit. Some examples include milk and egg quotas, goodwill, franchises, concessions, or licences for an unlimited time period. This kind of property is eligible capital property. The price you pay to buy this kind of property is an eligible capital expenditure.

As of January 1, 2017, the eligible capital property (ECP) system was replaced with the new capital cost allowance (CCA) class 14.1 with transitional rules. Under the old system, eligible capital expenditures are added to the cumulative eligible capital pool at a 75% inclusion rate, and the rate of depreciation of those expenditures is 7% on a declining-balance basis. Under the new system, newly-acquired eligible properties will be included in class 14.1 at a 100% inclusion rate with a 5% capital cost allowance rate on a declining-balance basis.

Property that was ECP will be depreciable property and expenditures and receipts that were accounted for under the ECP rules will be accounted for under the rules for depreciable property and capital property included in class 14.1.

On this page

Eligible capital expenditure

You may buy property that does not physically exist but gives you a lasting economic benefit.

This kind of property is eligible capital property. The price you pay to buy this type of property is an eligible capital expenditure.

We consider franchises, concessions, or licences with a limited period to be depreciable properties, not eligible capital properties. As of January 1, 2017, the eligible capital property (ECP) system was replaced with the new capital cost allowance (CCA) class 14.1 with transitional rules. For details on depreciable properties, go to Chapter 4 of guide T4002 , Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Annual allowance

You cannot fully deduct an eligible capital expenditure because the expenditure is considered to be capital and provides a lasting economic benefit. However, you can deduct part of its cost each year. We call the amount you can deduct your annual allowance.

CEC account

This is the bookkeeping record you establish to determine your annual allowance. You also use your cumulative eligible capital (CEC) account to keep track of the property you buy and sell. We call the property in your CEC account your eligible capital property. You base your annual allowance on the balance in your account at the end of your fiscal period. Keep a separate account for each business. Include all eligible capital property for the one business in the same CEC account.

Transitional rules – Undepreciated capital cost balance

Generally, the undepreciated capital cost (UCC) of the new class in respect of a business at the beginning of January 1, 2017 is equal to the amount that would have been the cumulative eligible capital (CEC) balance in respect of the business at the beginning of January 1, 2017.

Generally, the total capital cost of all property in Class 14.1 at the beginning of that day is deemed to be 4/3 of the total of the amount that would have been the CEC balance at the beginning of that day and past depreciation claimed that has not been recaptured before that day.

There are also rules for allocating total capital cost between goodwill property and each identifiable property in the new class that was an eligible capital property.

An amount is deemed to have been allowed as capital cost allowance before January 1, 2017, such that the UCC balance at the beginning of January 1, 2017 is equal to the amount that would have been the CEC balance at the beginning of January 1, 2017.

The determination of the total capital cost and the allocation of the capital cost of each property that was an eligible capital property before January 1, 2017 is relevant to the calculation of recaptured capital cost allowance and capital gain in respect of the disposition of such a property on or after January 1, 2017. It is not necessary to determine the total capital cost, or to allocate a capital cost to each property, to determine the amount that may be deducted.

Transitional rules – Deemed gain immediately before January 1, 2017

You may be able to include an amount in your income in a tax year that straddles January 1, 2017. The amount of the income inclusion, if any, is relevant to the calculation of the final CEC balance for the purpose of determining the total capital cost of the class. An income inclusion may be required if you receive proceeds in that tax year and prior to January 1, 2017, such that there would have been an income inclusion if the tax year had instead ended immediately before January 1, 2017. You may choose to have the income inclusion reported as business income or as a taxable capital gain.

An election to defer this income inclusion is available in a manner that is similar to the manner in which income inclusions could be deferred under the ECP rules. Where, on or after January 1, 2017 and in that tax year you acquired a property of the new class or you are deemed to have acquired goodwill, you may elect to reduce the income inclusion by up to half of the capital cost of the new property. In this case, the capital cost of the new property is then reduced by twice the amount by which the income inclusion is reduced.

Transitional rules – Dispositions of former ECP

Receipts related to expenditures incurred before January 1, 2017 cannot result in excess recapture when applied to reduce the balance of the new CCA class. Certain qualifying receipts reduce the UCC of the new CCA class at a 75% rate (the rate at which eligible capital expenditures were added to CEC). Receipts that qualify for the 75% rate are generally receipts from the disposition of a property that was an ECP and receipts that do not represent the proceeds of disposition of property. This is achieved by increasing the UCC of the new class by, generally, 25% of the lesser of the proceeds of disposition and the cost of the property disposed of.

Transitional rules – Non-arm’s length dispositions of former ECP

Although changes to the rules increases the UCC balance of the new class for, generally, 25% of the proceeds of disposition of property that was ECP before January 1, 2017, the new rules also prevent the use of non-arm’s length transfers to increase the amount that can be depreciated in respect of the new class. Generally, when you acquire a property of the new class, only 3/4 of the capital cost of the property is included in the UCC in respect of the class if the following conditions apply:

  • the property or a similar property was previously an eligible capital property of yourself or a person or partnership not dealing at arm’s length with the taxpayer
  • the UCC was increased in respect of an earlier disposition of the property or similar property by yourself or the non-arm’s length person or partnership

This effect is achieved by deeming you to have claimed CCA in respect of the new class equal to the lesser of 1/4 of the cost of the property acquired and the amount that was deemed to have been added to the UCC of the new class of yourself or another person or partnership.

For more information about the old ECP rules, see the 2016 version of this guide.

For more information on changes to the ECP system, go to Explanatory Notes – Eligible Capital Property.

Eligible capital property of a deceased person

When a person dies, we deem that the person has disposed of all capital property right before death. Also, right before death, we deem that the person has received the deemed proceeds of disposition. For more information, go to Deemed disposition of property.

Partnerships

A partnership can own eligible capital property and ask to deduct an annual allowance for that property. Any income from the sale of eligible capital property the partnership owns is income of the partnership. For more information about eligible capital expenditures, go to Chapter 5 of guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Forms and publications

Related links

Original Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/farmers-fishers/eligible-capital-expenditures-farmers-fishers.html

Categories
Accounting Alberta Bookkeeping services Edmonton Alberta Bookkeeping Services Incorporate Sherwood Park Accountants Small Business Accounting and Taxes Services in Edmonton Alberta Tax

Bookkeeping

We provide continuing bookkeeping maintenance in the background while you focus on your core business operations which helps making us into the top accounting in firm in the region.  As experienced bookkeeping and tax professionals, we’ll help you with all the data entry and bank reconciliations that are required, all on a remote basis. Contact us today and see how we can help you.

Contact us today we will be happy to help. Phone: 780-953-5250, or email info@bomcas.ca

Methods of calculating deductions – CPP, EI, and income tax

CPP and EI

Income tax

You can use our Payroll Deductions Online Calculator (PDOC) to calculate payroll deductions for all provinces and territories except Quebec. It calculates payroll deductions for the most common pay periods (such as weekly or biweekly), based on exact salary figures.

The Payroll Deductions Tables help you calculate the Canada Pension Plan (CPP) contributions, employment insurance (EI) premiums, and the amount of federal, provincial (except Quebec), and territorial income tax that you have to deduct from amounts you pay each pay period.

Note

A pay period means the period for which you pay earnings or other remuneration to an employee.

Before you decide which method to use, read Which provincial or territorial tax tables should you use?.

There are numerous versions of the Payroll Deductions Tables to help you calculate CPP contributions, EI premiums, and the amount of federal, provincial (except Quebec), and territorial income tax that you have to deduct.

Note

If the computer formulas you want to use are different from ours, you have to submit them to any tax service office or tax centre for approval.

CPP and EI

You can use the manual calculation for CPP and the manual calculation for EI to calculate the deductions.

Important notice

The Department of Finance Canada has implemented legislation that will change the CPP. There will be a gradual 7 year phase in beginning in 2019. For more information, go to their website.

Caution for employers using software programs, in-house payroll programs, and bookkeeping methods

For Canada Pension Plan (CPP) purposes, contributions are not calculated from the first dollar of pensionable earnings. Instead, they are calculated using the amount of pensionable earnings minus a basic exemption amount that is based on the period of employment.

If used improperly, some payroll software programs, in-house payroll programs, and bookkeeping methods can calculate unwarranted or incorrect refunds of CPP contributions for both employees and employers. The improper calculations treat all employment as if it were full-year employment, which incorrectly reduces both the employee’s and employer’s contributions.

For example, when a part-year employee does not qualify for the full annual exemption, a program may indicate that the employer should report a CPP overdeduction in box 22 – Income tax deducted of the T4 slip. This may result in an unwarranted refund of tax to the employee when the employee files his or her income tax and benefit return.

When employees receive refunds for CPP overdeductions, their pensionable service is adversely affected. This could affect their CPP income when they retire. In addition, employers who report such overdeductions receive a credit they are not entitled to because the employee worked for them for less than 12 months.

Income tax

As an employer or payer, you are responsible for deducting income tax from the remuneration or other income you pay. There is no age limit for deducting income tax and there is no employer contribution required.

We have forms to help you determine how much income tax to deduct: 

  • Most employees and recipients fill out Form TD1. There are two types of form TD1 – federal and provincial or territorial. Both forms, once completed, are used to determine the amount of federal and provincial or territorial tax to deduct from the income an individual receives in a year.
  • Employees who are paid commissions and who claim expenses may choose to fill out Form TD1X, in addition to Form TD1.
  • Fishers fill out Form TD3F.

As an employer, you may create a federal and/or provincial or territorial Form TD1 and have your employee send it to you electronically rather than send you the actual completed Form TD1. For more information, go to Electronic Form TD1.

Once completed, the TD1 will provide the employees’ or the recipients’ total claim amount. Use this amount to determine the claim code to use to determine the amount of tax to deduct. Claim codes are listed in each version of the payroll deductions tables.

You can use the manual calculation for income tax to calculate the deductions.

Also, if you pay bonuses and retroactive pay increases, or you pay employees who earn commissions (without expenses) periodically, use the bonus method.

If an employee states that his or her total expected income from all sources will be less than the total amount claimed, do not deduct any federal, provincial, or territorial tax. However, if you know this statement is false, you have to deduct tax on the amounts you pay. If you need advice, call 1-800-959-5525.

Employment in Quebec

Individuals who work or receive other income (such as pension income) in the province of Quebec have to fill out a federal Form TD1, Personal Tax Credits Return, and a provincial Form TP-1015.3-V, Source Deductions Return.

Individuals who incur expenses related to earning commissions have to fill out a federal Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions, and provincial Form TP-1015.R.13.1-V, Statement of Commissions and Expenses for Source Deduction Purposes.

You can get Quebec forms from Revenu Québec.

Online calculators

Forms and publications

Related topics

Original Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/methods-calculating-deductions-cpp-ei-income-tax.html

Categories
Accountant in the Park Accounting Alberta Accountant Blog Alberta Accountant Services Alberta Accounting Firm Alberta Bookkeeping services Canada Tax Services Canada Virtual Accounting Firm Edmonton Accounting Firm Edmonton Alberta Accounting Firm Edmonton Alberta Bookkeeping Services Edmonton Tax Accounting and Bookkeeping Services Other Accounting Services Personal income tax Sherwood Park Tax Accounting and Bookkeeping Services Small Business Accounting and Taxes Services in Edmonton Alberta Tax Tax Accountant Sherwood Park Tax Accounting and Bookkeeping Services Tax Preparation Sherwood Park YEG ACCOUNTANT

Get free tax help for your small business

In-person support to help you save time and money

The Canada Revenue Agency (CRA) offers free one-on-one visits or group seminars for small businesses and self-employed individuals across Canada through its Liaison Officer service. During a visit or seminar, the liaison officer will:

  • help you better understand your tax obligations and possible tax deductions
  • show you how to avoid common errors
  • give you an overview of helpful tools and services

The liaison officer will also provide recommendations on how to strengthen your bookkeeping system and, if you’re meeting one-on-one, offer to review your books and records.

Original Source: https://www.canada.ca/en/revenue-agency/campaigns/small-business-tax-help.html