Why Realtors Need a Professional Accountant

Real Estate is a HOT topic right now! If you are a realtor here locally, you probably know what we are talking about! 

Cahill CPA specializes in realtors & real estate- we are experts in questions regarding:

• important tax credits & deductions
• write offs and business expenses
• whether to buy or lease your vehicle
• whether to buy in your company or personally
• GST 
• commission rebates
• rental properties & short term rentals
• setting up a personal real estate corporation (PREC)
• and more. 

We have a lot of clients that are realtors, and many are finding that last year was one of their most unique and busiest years yet! Even more reason to find a trusted accountant to help you with your accounting.

Get in touch:

www.CahillCPA.ca

604-985-0123

north vancouver, northvancouver, northvancouvercpa, cpa, realestate, westvancouver, westvancouvercpa

Charitable Giving & Your Tax Return

With tax time approaching, clients often ask about their charitable contributions from the previous year or are beginning to gather their donation tax receipts. 

CPA BC has some important reminders to keep in mind when choosing which charities to donate to. Their reminder is clear- it’s important to be informed when spending your money, even when it’s giving to charity. You want to make the most informed decision, and know that the majority of your donation is going to the cause that you care about. 

Their tips include:

1. Ensure a Charity is registered. This can be done with a simple search on the CRA website. Link here. 
2. Find their financial statements
3. Review how much percentage of your giving goes directly to the cause. 
4. Look for results. Do some research on what this charity is doing with their donations, and see if they are forthcoming with examples of how they are spending the donations. 

To read the full article: 

Four Important Things to do Before You Donate to a Charity

Online Tax Credit Calculator:

Another interesting online tool is the tax credit calculator. The Red Cross has a simple to use online calculator to determine how much tax credit you could receive depending on the size of donation. 

https://www.redcross.ca/donate/donation-tax-credit-calculator

Cahill CPA Can Help! 

Make sure to let us know when we are preparing your return, if you have made charitable donations this past year. We can help you determine how much to claim on your income tax return, what you might wish to carry over for next year, and give you advice on how best to maximize your donations in the future. 

www.CahillCPA.ca    604-985-0123

Accountant, CPA, CPA Accountant, North Vancouver Accountant

Special Announcement

Conversion to limited liability partnership

We are pleased to inform you that Cahill Chartered Professional Accountants have been converted to Cahill Chartered Professional Accountants LLP effective January 1, 2021 (the “Effective Date”), respectively.

Cahill Chartered Professional Accountants LLP would like to welcome our two new partners to our firm, Mathew Jacquet CPA, CGA and Tony Elliott CPA, CA. Matthew & Tony have both been invaluable members of our firm, and now we are proud to welcome such professional, experienced accountants to our partnership. 

Please quote Cahill Chartered Professional Accountants LLP, as applicable, in all of your dealings with us.

If you have any queries, please contact us at .

Support Local!

You’ve probably heard it a lot this past year: “Support Local” and “Shop Local”. Maybe you even made a goal to shop local this past Christmas, or committed to supporting local more in 2021!

Have you heard about the BC Marketplace website? https://marketplacebc.ca/

BC Marketplace is an awesome online resource for finding local BC businesses.  It has a simple search feature to find the services or products you are looking for.

According to their website: 

Browse the amazing small businesses operating throughout the province in the BC Marketplace. By supporting BC businesses you keep money in the local economy. 1861 business listed (with more added each day). 

If you are a local BC business, make sure to add your profile to this great resource and make your information easily accessible to those looking to support local! Register YOUR business by clicking here. 

Cahill CPA can also be found on BC Marketplace, so if you’re looking for a local BC Accountant, you can find more information about us: https://marketplacebc.ca/marketplace/cahill-cpa/

Happy Shopping! 

Making supporting our local economy even easier- BC Marketplace!

https://marketplacebc.ca/

CPA, CPA for business, accountant, cpa north vancouver, cpa tax accountant, cpa for taxes, tax, taxes, northvancouver

New Simplified Way to Claim “Work from Home Expenses”

Well, that’s simple!

CRA recently announced a simplified way for Canadians to claim working from home expenses. For your 2020 personal income tax return, Canadians can now claim “work from home expenses” with a simple flat rate method. 

The CRA announced that:

“Those who worked from home more than 50 per cent of the time over at least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction.”

The hope is that more Canadians will be able to claim the deduction. Our accountants will be aware of this deduction come tax time, but it is always a good idea to let us know if you began working from home in 2020 (especially if this has changed from years passed). 

Although the amount available to claim might not seem like a lot to some, every dollar can make a difference come tax time. According to the CRA: a “new temporary flat rate method" will allow eligible Canadians to claim a deduction of $2 for each day they worked from home because of COVID-19 up to a maximum of $400.

For this simplified method, our clients will not require their employers to sign any additional documents. In addition, you do not need to keep any supporting documents or receipts, and you do not need to calculate the size of your work space. 

One important thing to remember- if you have larger claims for your home office expenses, you can still use the previous detailed method. Our accountants can help you determine which method makes sense for you, and will be able to provide more detailed information based on your situation. We will also be able to assist you with the necessary tax forms for you and your employer. Under the previous method (when claiming larger expenses), you will need to keep supporting documents, calculate the size of your home workspace, etc. So it is important to know which deduction method you will be using, so you know what type of information to keep. 

As many Canadians have chosen or been required to work from home this year, we hope that this information may be helpful. It is always a good idea to keep all documents, receipts, and information you think might be helpful come tax time. It’s better to be prepared for all situations. 

Let us know if you have any questions regarding home office expenses- and again, make sure to let us know if you wish to claim these expenses come tax time. 

604-985-0123    North Vancouver Office     www.CahillCPA.ca 

Sources:

CRA: Home Office Expense Calculator

“Working from home this year?” CTV News Article: December 15th

“Millions of Canadians working from Home” CBC News Article: December 15th

Personal Real Estate Corporation (PREC)

What is PREC?

A personal real estate corporation, or PREC, allows a real estate agent to earn their business income through a corporation. British Columbia, along with several other provinces in Canada, allow PRECs.

Does it make sense to PREC? 

Our team at Cahill CPA can help determine whether “PREC’ing” is right for you. We help assess all the factors to consider when deciding whether to incorporate your real estate business. 

Benefits to Incorporate:

• the ability to defer income tax. 
• opportunities for income splitting with family members. 

There may be other potential benefits of personal real estate corporations for some realtors. 

Cahill CPA has extensive experience with BC realtors, and has provided guidance & support to our clients when making the decision to incorporate.  It is always prudent to seek tax & financial advice about the potential benefits of incorporation.

www.CahillCPA.ca       604-985-0123        North Vancouver

Important Update on CEBA

The Canada Emergency Business Account (CEBA) that was created to support Canadian businesses, has now been increased from $40,000 to $60,000. 

CEBA was launched on April 9, 2020.  It provides interest-free bank loans, guaranteed by the government, of up to $40,000 (now $60,000) to small businesses and to not-for-profits that are operating businesses. Last week, on December 4th,  it was announced that CEBA loans would increase from $40,000 to $60,000. Any businesses who have already applied for or received the $40,000 loan may apply for the $20,000 expansion. 

We have had clients already apply for this loan, or inquire about CEBA. If you have any questions about how this will specifically support your business, please contact us. 

Applications for CEBA will be accepted until March 31, 2021 at recognized financial institutions. 

The Canada Emergency Business Account (CEBA) was summarized here, from CRA: 

CEBA Requirements and Deadlines have changed: 

• As of December 4, 2020, CEBA loans for eligible businesses will increase from $40,000 to $60,000.
• Applicants who have received the $40,000 CEBA loan may apply for the $20,000 expansion, which provides eligible businesses with an additional $20,000 in financing.
• All applicants have until March 31, 2021, to apply for $60,000 CEBA loan or the $20,000 expansion.

For more information about eligibility, visit the CRA page here for all the details. 

Contact us at Cahill CPA for any questions regarding CEBA.    Email your Cahill CPA accountant directly, or get in touch with Shannon for assistance.  

Claiming Charitable Tax Credits

Every year, we like to update our clients on the various tax credits & opportunities available when donating to charity during the holidays. This will also apply to donations throughout the year. 

CRA has a variety of useful tools on their website: CRA LINK HERE

Here you will be able to calculate your charitable tax credits, get information regarding applicable non-profits & charities, what documents are needed to claim your charitable tax credits, and more. 

There is also a helpful charitable tax credit calculator, which can be used to get a general sense of the tax credit you would be eligible for.  Tax Credit Calculator

The charitable tax credit is available for anyone who makes a donation to an approved charity or non-profit organization. Your donation can be money, property, stocks, gifts, etc. For example, some of our clients have offered a week stay at their airbnb rental property, a pedicure from their salon, or a gift basket of their coffee for a charity auction. Determining the value of the goods or services donated, and having a record of it, is very important should you get audited. This is considered an “in kind” donation. 

If you have any questions about charitable tax credits, please let us know. There are many specifics with donations that we can help with. 

Readers Choice Awards Voting

It's that time of year again! It's time to vote for the North Shore News Reader's Choice Awards! We were honoured to be voted "North Shore's Favourite Accountant" for the last two years- and hope to win again this year. We are asking our clients & friends to get in their votes before December 8th. 

Link to the Ballot 3: https://www.nsnews.com/readers-choice/ballot3

You need to enter your name, email and phone number, and you must answer HALF of the 71 categories. We are listed at number 25. 

By voting in these awards you are supporting great businesses in North Vancouver & West Vancouver- and are also entered to win a $500 gift card to  Park Royal mall! 

Thanks for all your support!

Canada Emergency Rent Subsidy (CERS)

To all our business, non-profit & charity organization clients, this might be of interest!

CRA recently gave information about the newest support for businesses, non-profit organizations, and charities: the Canada Emergency Rent Subsidy (CERS). 

From CRA:

Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

The significance of the latest information is: 

• NOT requiring the participation of landlords
• NO minimum loss of revenue required

This subsidy will hopefully be easier to apply for, support more people, and allow businesses to overcome the challenges faced right now with Covid-19. 

To see if you are eligible to apply, follow this checklist:

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-who-apply.html

To calculate a possible subsidy amount, input your information here:

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-calculate-subsidy-amount.html

For any specific questions related to your business, non profit or charity- please contact us at Cahill CPA. We would be happy to give you more information.