Enhanced Support for Teachers

Education and teachers are really important to us here at Cahill CPA- our partner’s wife Crystal Cahill is a teacher herself! We know firsthand how educators spend so much of their own money on their classrooms & for their students, so we wanted to remind you about the refundable tax credit available to teachers. Although it isn’t much, it could make a small difference to your return this year. 

Some important changes or points to note: 

• This was previously 15% of your expenses, and is now 25%. Up to a maximum of $1000. 
• Even if you taught online/from home, you are able to claim teaching expenses if they facilitated student learning. 
• Teaching devices such as video streaming devices, projectors, speakers, etc. that you needed to facilitate at-home learning for your students can be eligible. 
• If you purchased masks for your students at your own cost, they can be considered a consumable, eligible expense. 

***Please be sure to keep all receipts, and know that you may be asked for confirmation from your employer that you were not reimbursed for the expenses claimed. 

As always, let your accountant know at tax time if you are a teacher or educator, and if you have expenses you would like to claim under this support. 

From the CRA Website: Source 

Enhanced Support for Teachers

Under current rules, teachers and early childhood educators may claim a 15-per-cent refundable tax credit based on an amount of up to $1,000 in expenditures made in a taxation year for eligible supplies.

Eligible supplies must be purchased for use in a school or in a regulated child care facility for the purpose of teaching or facilitating students’ learning. Eligible supplies include the following durable goods: books; games and puzzles; containers (such as plastic boxes or banker boxes); and educational support software. Eligible supplies also include consumable goods, such as construction paper for activities, flashcards or activity centres.

If you were an eligible educator, you can claim up to $1,000 of eligible supplies expenses.

Eligible educator

You are considered an eligible educator if, at any time during the 2021 tax year, both of the following conditions are met:

• You were employed in Canada as a teacher or an early childhood educator at an elementary or secondary school, or a regulated child care facility
• You held a teaching certificate, license, permit or diploma, or a certificate or diploma in early childhood education, which was valid and recognized in the province or territory in which you were employed

Eligible supplies expenses

An eligible supplies expense is the amount that you paid in 2021 for teaching supplies that meet all of the following conditions:

• You bought the teaching supplies for teaching or facilitating students’ learning
• The teaching supplies were directly consumed or used in the performance of the duties of the eligible educator's employment
• You were not entitled to a reimbursement, allowance, or any other form of assistance for the expense (unless the amount is included in the calculation of your income from any tax year and is not deductible in the calculation of your taxable income)
• The eligible teaching supplies expense was not deducted from any person’s income for any year or included in calculating a deduction from any person’s tax payable for any year

Teaching supplies are consumable supplies and prescribed durable goods. Durable goods are:

• books, games, and puzzles
• containers (such as plastic boxes or banker boxes)
• educational support software
• calculators (including graphing calculators)
• external data storage devices
• web cams, microphones and headphones
• wireless pointer devices
• electronic educational toys
• digital timers
• speakers
• video streaming devices
• multimedia projectors
• printers
• laptop, desktop and tablet computers, provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom

Notes

Teaching supplies purchased in order to teach from an online platform due to COVID-19 are eligible for this credit if all of the conditions above have been met.

Disposable masks that are not supplied by your school are considered consumable supplies if students are required to wear them in your classroom and all of the conditions above have been met.

The CRA may ask you later to provide a written certificate from your employer or a delegated official of the employer (such as the principal of the school or the manager of the child care facility) attesting to the eligibility of your expenses for the year.

Update For Home Office Expenses

Here’s the breakdown.

Basically, if you worked from home this last year due to Covid-19, you may be eligible to claim home office expenses. Good news: the flat rate method is UP this year- meaning you can now claim up to $500 (up from $400). 

This is an important expense to discuss with your accountant come tax time, and we can help you determine if you are eligible to claim, how much, and how it will impact your return. 

Here are the details from CRA:

Changes to the Temporary Flat Rate Method:

The temporary flat rate method simplifies your claim for home office expenses. You are eligible to use this method if you worked more than 50% of the time from home for a period of at least four consecutive weeks in the year (2020, 2021, or 2022) due to the COVID-19 pandemic. You can claim $2 for each day you worked from home during that period plus any additional days you worked at home in the year due to the COVID-19 pandemic. The maximum you can claim using the temporary flat rate method is up to $400 (200 working days) per individual in 2020 and up to $500 (250 working days) per individual in 2021 and in 2022.

Source: CRA Website

Find all the e-services available to you and your business here: CRA E-Services 

Below we've listed many of the services and programs available to you online, through your CRA My Business Account. For the extensive list, be sure to check their website. If you have any questions about online services for your business, don't hesitate to ask. 

From CRA: 

Our online services make it faster and easier to handle your company's tax matters. You, your employee, or your representative can file, pay, and access detailed information about your tax accounts - all online, all at your fingertips. Save time - go online!

What can you do on your CRA My Business Account?

Programs

If you are a business owner, and have thought about passing along your business or shares of your business to a family member, this announcement is for you! 

According to a recent article in MoneyWise by Clayton Jarvis, there have been recent changes that will make a big difference to the selling of shares of your business to a family member. 

Below are some of the key points to note. If you have questions about this, and how it could impact your business & your family, be sure to ask us. 

Excerpts from: New law means significant tax relief when you pass your business on to your kids by Clayton Jarvis. 

Read the full article here. 

Bill C-208 was given royal assent, becoming Canadian law and amending the ITA, in June 2021. Families looking to transfer shares of family farms, fishing corporations or small business corporations to their children and grandchildren are now in line for what could be significant tax relief.

Now that sales of company shares to family members receive capital gains treatment, sellers may also be able to take advantage of the lifetime capital gains exemption (LCGE), which allows them to realize tax-free capital gains on proceeds totalling up to $892,218 for the 2021 tax year, if the asset being sold qualifies.

Bill C-208 only extends to certain types of businesses: family farms, fishing corporations and “small business corporations”, which don’t necessarily need to be small, but they do need to be private and Canadian in order to receive the new tax treatment.

They also need to be active. A corporation that owns an investment portfolio or a collection of apartment buildings, for example, doesn’t qualify.

“For purposes of a sale just getting capital gains [treatment], you'd want to make sure that the corporation that is buying your shares is buying small business corporation shares, not publicly-traded entities, not U.S.-owned businesses,” Leve says.

For more information, give us a call or send us an email. We would be happy to answer any questions, and help you with this process. 

www.CahillCPA.ca

604-985-0123

 Kyra grew up in Victoria, BC and had always hoped to move to Vancouver. In 2021, she finally made the move and could not be happier to be living on the beautiful North Shore. She has always had a passion for customer service and is excited to build lasting relationships with clients and coworkers at Cahill CPA. Kyra will be at the front desk ready to greet each client with a warm welcome. Outside the office, she enjoys cooking new recipes at home and walking along the beaches on the North Shore.   

CEBA Loan Forgiveness Repayment Deadline Extended

Big news for businesses who have received CEBA: the Canadian Government has extended the loan forgiveness repayment deadline. During this global pandemic, CEBA has been used by over 900,000 Canadian businesses, so it is safe to say that this announcement will be good news for many. 

According to the news release from CRA: 

On January 12, 2022 it was announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.

This extension will support short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).

This could be of considerable relief for many Canadian businesses, as they still struggle with the outstanding challenges related to the COVID-19 pandemic. Be sure to discuss this with our accountants if you have any questions about how the CEBA loan and its repayment will impact you and your business. 

Read more from CRA: News Release January 12, 2022

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CEBA: Canada Emergency Business Account

Effective Estate Planning

Along with BlueShore Financial & Veritas Law, Janice Tai presented at a recent seminar on the topic of Effective Estate Planning. Our senior accountants Julia Parciak and Jasmine Lille also prepared and presented at this event. 

Our team specializes in estate planning and tax. We understand the importance of protecting the interests of your family and loved ones, while also managing estate taxes and probate fees. Having an estate plan is an important part of your overall financial strategy, regardless of age. 

The experienced staff at BlueShore Financial reminded our attendees that as you acquire more assets, your estate plan takes on added layers of complexity. They also emphasized the need for a professional team: a financial advisor, lawyer, and accountant. 

Our accountants here at Cahill CPA will be able to assist with:

• Detailed review of your asset and Will, with personalized recommendations based on your specific needs. 
• T1 Terminal Tax Return,T3 Testamentary Estate Returns, and Clearance Certificates
• T3 Trust Returns, Alter Ego Trusts
• Request for Certificate of Compliance for a non-resident disposing of taxable Canadian property. 

Remember: Creating an estate plan is not something to take lightly, and it is not a one time thing. Many professionals advise that you take a look at your estate plan and Will every 3-5 years, and even sooner if there have been major life changes (ex. Marriage, children, large purchases, etc). 

Having an accountant on your estate planning team will help minimize taxes & probate fees, and help with the completion of all necessary documents and returns. 

Let us know if you are in need of estate planning services.

www.CahillCPA.ca 

604-985-0123

BC Marketplace Website

Quick tip for local BC businesses: Did you know you can advertise for free on the "BC Marketplace" website?

This is a great platform for people to find businesses they can support locally- and it is a free advertising opportunity if you own a business here in BC. Any type of business can create a profile, and it only takes about 10 minutes to fill in your information. 

BC Marketplace gives five great reasons for advertising on their free platform:

1. Reach a BC Based Audience: Allow us to use our network of businesses and community partners - we are supported by both the B.C. Government and the Government of Canada - throughout British Columbia to drive customers to your business.
2. It's Free and Simple: The process couldn’t be easier; simply complete our intake form and we’ll handle the rest. We aim to list businesses within two business days.
3. Get Marketing Exposure: We will be using our marketing channels and networks, along with paid media, to promote the BC Marketplace to as wide an audience as possible - with thousands of page views each month.
4. Improve Your Online Presence: Alongside our own search engine optimization efforts to promote the BC Marketplace, your business will enjoy a boost in your own SEO efforts with a link to your business listed on the BC Marketplace site.
5. Ongoing Support: Once you've registered, you can edit and change your account as much as you like, including updating offers. If you do need any other support, we have a team to help.

Register your business today- OR, search for local shops & services here in your own community. 

https://marketplacebc.ca/

Movember Campaign

This year, we are joining up with Twin Lions Contracting to raise money & awareness for men's health. Twin Lions is a local renovation contractor and custom home builder here in North Vancouver. They love helping others, and have made such an impact with their Movember fundraising campaigns each year. This year, we are so honoured to join their Movember team, along with some other great local companies. 

Jordan, Taylor, Crystal, Marek and Shannon are all taking part in the fundraising- and have committed to "move for Movember" or grow a moustache (way to go Taylor!). We hope to help Twin Lions in their goal of raising 50,000 towards men's health. 

From the Movember Foundation website:

"We exist to help men live happier, healthier, longer lives – this is what drives every single one of our 1,250 men’s health projects."

"Mental health and suicide prevention, prostate cancer and testicular cancer – we’re taking them all on. Since 2003, Movember has funded more than 1,250 men’s health projects around the world, challenging the status quo, shaking up men’s health research and transforming the way health services reach and support men."

https://ca.movember.com/about/foundation

 To donate to this foundation- and to our team:

 Find the campaign here https://ca.movember.com/team/2243657 

Arsan is a recent Bachelor of Commerce graduate with a dual degree in accounting and international business. Simultaneously with his studies, Arsan completed several internships and part-time works in various industries, mainly marine & public accounting, to determine the right career path after graduation. He is starting the CPA program and is determined to help Cahill's clients to receive a high standard of accounting & tax services. Arsan has mainly grown up in South Korea and Shanghai, China. He spent two years with his dad on a ship travelling around the globe through the seven seas during his childhood. When he is not working or studying for CPA, he enjoys going to the gym.