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. 

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. 

Rental Properties & "Change in Use"

Real-Estate. Markets. Investment properties. Rental properties. Mortgages. Interest Rates. 

SO many hot topics right now regarding the buying and selling of properties. As accountants, we answer a lot of questions from clients regarding real estate. 

One of the most complicated topics is “change in use”- in simplest terms, when you are moving OUT of a property and converting it to a rental, or moving back IN to a property that was previously a rental. There is a combination of reporting requirements, as well as tax implications, that you would want to discuss with your accountant. These “change in use” rules can be quite complex, and it's important to understand how this will impact you specifically before moving or making any decisions. 

According to Canada Revenue Agency:

“When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it. The following are some sample situations:

• You change all or part of your principal residence to a rental or business operation.
• You change your rental or business operation to a principal residence.

Every time you change the use of a property, you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same amount. You have to report the resulting capital gain or loss (in certain situations) in the year the change of use occurs.”

Planning ahead is very important, instead of trying to deal with the repercussions later. 

CRA has more information on “Changes in Use” at the link provided here. 

Have questions about this, or other accounting, tax, or financial topics, contact us!   604-985-0123      

Rental Properties & "Change in Use"

Real-Estate. Markets. Investment properties. Rental properties. Mortgages. Interest Rates. 

SO many hot topics right now regarding the buying and selling of properties. As accountants, we answer a lot of questions from clients regarding real estate. 

One of the most complicated topics is “change in use”- in simplest terms, when you are moving OUT of a property and converting it to a rental, or moving back IN to a property that was previously a rental. There is a combination of reporting requirements, as well as tax implications, that you would want to discuss with your accountant. These “change in use” rules can be quite complex, and it's important to understand how this will impact you specifically before moving or making any decisions. 

According to Canada Revenue Agency:

“When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it. The following are some sample situations:

• You change all or part of your principal residence to a rental or business operation.
• You change your rental or business operation to a principal residence.

Every time you change the use of a property, you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same amount. You have to report the resulting capital gain or loss (in certain situations) in the year the change of use occurs.”

Planning ahead is very important, instead of trying to deal with the repercussions later. 

CRA has more information on “Changes in Use” at the link provided here. 

Have questions about this, or other accounting, tax, or financial topics, contact us!   604-985-0123      

Rental Properties & "Change in Use"

Real-Estate. Markets. Investment properties. Rental properties. Mortgages. Interest Rates. 

SO many hot topics right now regarding the buying and selling of properties. As accountants, we answer a lot of questions from clients regarding real estate. 

One of the most complicated topics is “change in use”- in simplest terms, when you are moving OUT of a property and converting it to a rental, or moving back IN to a property that was previously a rental. There is a combination of reporting requirements, as well as tax implications, that you would want to discuss with your accountant. These “change in use” rules can be quite complex, and it's important to understand how this will impact you specifically before moving or making any decisions. 

According to Canada Revenue Agency:

“When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it. The following are some sample situations:

• You change all or part of your principal residence to a rental or business operation.
• You change your rental or business operation to a principal residence.

Every time you change the use of a property, you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same amount. You have to report the resulting capital gain or loss (in certain situations) in the year the change of use occurs.”

Planning ahead is very important, instead of trying to deal with the repercussions later. 

CRA has more information on “Changes in Use” at the link provided here. 

Have questions about this, or other accounting, tax, or financial topics, contact us!   604-985-0123      

BC Elections and Your Business

North Vancouver Chamber recently wrote about the BC elections, and how candidates are tackling the issues facing businesses here on the North Shore. They included information regarding what COVID related issues were the most significant for businesses, and what the top election issues were for businesses. The candidates unedited responses to five important business related questions can be found on the North Vancouver Chamber website here. 

Source: North  Vancouver Chamber: "Meet Your Candidates"

https://www.nvchamber.ca/north-vancouver-meet-your-candidates-bc-election-2020/

Blueshore Financial COVID19 Grant

We love Blueshore!

Blueshore Financial has been a great business connection for us here locally in North Vancouver. Recently, Blueshore Financial contacted us, and generously provided us with a grant. They offered grants to help local companies restart their businesses as they adjusted to meet the impacts of COVID19. 

This grant enabled us to purchase important safety supplies for our staff & outfit our office with the necessary protection to continue serving our clients. 

According to their website, Blueshore Financial is a “designated Caring Company by the Canadian Centre for Philanthropy and a proud member of Canada’s IMAGINE program. [They] donate a minimum of 1% of [their] pre-tax profits annually to charities and not-for-profit organizations within the communities where [they] live, work and play.” 

We are proud to work alongside Blueshore here in North Vancouver, and we are humbled by their generous support to local groups such as Family Services of the North Shore, BC Children’s Hospital, Capilano University, and the North Vancouver School District. 

We are very grateful to Blueshore for their support during these challenging times. 

We highly recommend Blueshore financial for your banking & financial needs, and would happily connect you with one of their team!

To visit their website:

https://www.blueshorefinancial.com/

To learn more about their support in our community: https://www.blueshorefinancial.com/AboutUs/DiscoverBlueShore/CommunityInvestment/

CERB to CRB

Earlier this week, Canadians received the news that the Canada Recovery Benefit (CRB) would be increased to the same level as the Canada Emergency Response Benefit (CERB).

CERB will end soon, and recipients will either need to transition to Employment Insurance (EI), or look to the CRB for financial support if eligible. 

According to a recent article: 

“The Canada Recovery Benefit will help Canadians who stopped working due to COVID-19 but do not qualify for EI and Canadians who continue to have their employment or self-employment income reduced by 50 per cent or more due to COVID-19,” said Employment Minister Carla Qualtrough, during a news conference.

“It would provide eligible workers with $500 per week for up to 26 weeks, between September 27th 2020 and September 25th 2021.”

There are some differences with CERB, and Canadians need to be aware of the potential impacts on their tax return. In addition, the benefit will not be paid in advance and will be retroactive by two weeks. 

“Anyone receiving the benefit can earn up to $1,000 a month. But they will have to repay 50 cents on every dollar earned above $38,000, until the benefit amount is reduced to zero.

“Like EI, this new benefit will be paid in respect of the previous two weeks. This is different from the CERB, which was paid in advance.”

To break down the three benefits available to Canadians during the pandemic, here is information from a recent news article:

• A Canada Recovery Benefit (CRB) of $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support. This Benefit would support Canadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50%. These workers must be available and looking for work, and must accept work where it is reasonable to do so;
• A Canada Recovery Sickness Benefit (CRSB) of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19. This Benefit supports our commitment to ensure all Canadian workers have access to paid sick leave; and,
• A Canada Recovery Caregiving Benefit (CRCB) of $500 per week for up to 26 weeks per household, for eligible Canadians unable to work because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19 or because the child or family member is sick and/or required to quarantine.  

To read the full article & learn more:

https://ca.finance.yahoo.com/news/new-crb-benefit-gets-25-boost-bringing-payments-to-same-level-as-cerb-172111363.html

If this benefit will impact you & your financial situation, please contact us to discuss any questions or concerns. 

Canadian Financial Assistance During the Pandemic 

We are here to support you however we can, and we are staying up to date on all the benefits & financial assistance available to Canadians during the pandemic. 

Below is a link to a very straightforward questionnaire offered by CRA, that allows you to see what benefits you might be eligible for. Many of our clients are unsure of what they can apply for, and what is even available to them, so we hope that this might be a useful tool to get started! The below link is for individuals seeking financial assistance during Covid 19. 

https://covid-benefits.alpha.canada.ca/en/start 

There is also a helpful tool for businesses, to better understand the support that is available to Canadian businesses. By answering a few questions, you will be directed to information on the resources & support offered to businesses and how to apply. 

https://innovation.ised-isde.canada.ca/s/?language=en

As always, let us know how we can help you. 

Instalment Payments

We've received a lot of phone calls & emails from clients regarding upcioming instalment payments. Below we have included some of the information from Canada Revenue Agency regarding instalment payments, calculator, reminders, etc. 

Instalment Reminder Received in August 2020

If you receive an instalment reminder in August 2020, you can choose to reduce or not pay further instalments for 2020 if you meet one of the following conditions:

• The instalments you already paid this year will cover your estimated 2020 net tax owing

If you only received an instalment reminder in August and the reminder does not mention a March or June 2020 instalment payment, follow the instructions that apply to you:

No-calculation option – Pay the amount shown in box 2 of your reminder for September 15 and December 15.

Prior-year option – Calculate your 2019 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.

Current-year option – Estimate your current-year 2020 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.

Reminder, below we’ve included the descriptions for the 3 payment options. Choose the one that best fits for you. If you need help understanding these calculation options, or instalment payments, make sure to call us. 

From CRA: 

Calculation options

You have three options to choose from to calculate your instalment payments:

No Calulation Option

This option is best for you if your income, deductions, and credits stay about the same from year to year.

We will give the no-calculation option amount on the instalment reminders that we will send you. We determine the amount of your instalment payments based on the information in your latest assessed tax return.

Prior-Year Option

This option is best for you if your 2020 income, deductions, and credits will be similar to your 2019 amount but significantly different from those in 2018.

You determine the amount of your instalment payments based on the information from your tax return for the 2019 tax year. Use the Calculation chart for instalment payments for 2020 (open with Adobe Acrobat Reader) to help you calculate your total instalment amount due.

If you use the prior-year option and make the payments in full by their 2020 due dates, we will not charge instalment interest or a penalty unless the total instalment amount due you have calculated is too low. 

Current-Year Option

This option is best for you if your 2020 income, deductions, and credits will be significantly different from those in 2019 and 2018.

You determine the amount of your instalment payments based on your estimated current-year (2020) net tax owing, any CPP contributions payable, and any voluntary EI premiums. Use the Calculation chart for instalment payments for 2020 (open with Adobe Acrobat Reader) to help you calculate your total instalment amount due.

If you use the current-year option and make the payments in full by their 2020 due dates, we will not charge instalment interest or a penalty unless the amounts you estimated when calculating your total instalment amount due were too low. For more information, see Instalment interest and penalty charges.

Links for more information regarding instalments:

Paying by instalments

Instalment interest & penalties