Chartered Professional Accountants

Strength Behind Numbers  ™

217 Speers Road, Suite 12, 

Oakville  ON  L6K 0J3

Committed| Trusted | Proactive

Accountants, accountant, CPA, Tax

Who we are?

Sunil and Nita LLP, Chartered Professional Accountants, is a full service accounting firm providing personal/corporate tax, accounting, business advisory and bookkeeping services. We are a trusted name. Our strength is accurate work and building long-term relationships. We take time to know you and your business. We customize solutions to meet your business needs. Our goal is to take care of all your accounting and tax matters so that you have full attention to grow your business. We are affordable and accessible whenever you need us.  

 As Chartered Professional Accountants, we go beyond analyzing just numbers. We find opportunities behind them for your business. We are not only just another accounting firm, but also a valued business partner. Our “Strengths Behind Numbers  ™”  business statement guarantees accurate results and higher standard to ethical business practices.

accountants, oakville

Why us?

There are accountants everywhere providing same services, then why you should choose us. Here are some reasons:  

1. Member of leading Canadian accounting professional association i.e. Chartered Professional Accountants (CPA)  

2. Constantly updating the knowledge to bring you best possible solutions 

3. No hidden fee or short cut  

4. Committed to be available whenever you need us   

5. Help you in growing your business by coming alongside as partner at no extra costs

6. Knowledge of information technology (IT) to promote automation resulting costs savings 

7. International business experience      

8. Affordable Bookkeeping & Tax Planning

9. Experience in dealing with CRA

10. Year round support 

11. We will make sure all deductions are included in your tax return

12. Virtual Accountants (ask us how?)


2018 Federal budget highlights!

As expected,  2018 federal budget was big on gender equality. The budget aimed to encourage greater participation of women in the work force.  We think it’s about time that we recognize the importance of women in socio economic growth of our great country. There are also some small initiatives to help small businesses and entrepreneurs. However, the real impact is unclear at this time.  Below are few changes for personal income tax: 

  • Parental Leave – under new rule, year-long parent leave, parents can share up to 40 weeks of leave as long as second parent takes at least five weeks of leave to take care of  new born. 
  • Medical Expense Tax Credit – The medical expense tax credit will be expanded to include trained animal to perform tasks for a patient suffering with a severe mental impairment. However, the expenses will not be eligible if an animal is there to provide comfort or emotional support. 
  • Canada Worker benefit – This refundable credit is re-named from the Working Income Tax Benefit. The benefit will be increased (effective 2019) to help low –income Canadians
  • Canadians may claim the charitable donations tax credit for donation made to registered universities outside Canada. 

Small Business Corporation Tax Changes

  • Passive Income – As we know active business income is taxed at lower rate as compared to the personal income tax rates.  The rationale behind lower corporate tax rate is that businesses will reinvest the tax savings back in to the business to promote overall growth in Canadian economy. Now government wants a bigger share of Tax in your passive income (i.e. income from investments). Under new budget, the Small Business Deduction limit will be reduced if your corporation earned investment income between $50,000 and $150,000. In other words, don’t worry if your corporation investment income is less than $50,000.
  • The budget also proposed to limit tax advantage that currently small private corporations are enjoying by recovering refundable taxes on the payment of dividends.   
  • Accelerated depreciation on investment in specific clean energy generation
  • Small business tax rate decrease from 10.5% to 10% effective January 1, 2018 and to 9% effective January 1, 2019

Tax Deductions not allowed in 2017

Thanks to current Liberal government for discontinuing  following  tax dedcutions in personal tax return:

Children 's  Art Tax Credit

Child Fitness Tax Credit

Public Transit Pass Credit  (only pass acquired upto June 30, 2017)

Eduction Tax Credit

Text book Tax Credit

food for thought

How bonus works?

As small business owner, sometime you struggle to decide about how much money to be withdrawn from business for personal needs. If you don’t need the money, then funds can be left in corporation to grow or you may want to consider paying yourself a year-end bonus to create enough earned income to maximise RRSP limit for next year.  You can accrue bonus at the end of the year and claim deduction as business expenses. However, you don’t have to include the bonus in personal income in same tax year if you decide to defer the payment to 180 days.

Tax credits for long-term elder care

The cost of attendant care is one of significant expenses of long-term elder care. Tax credits helps to ease off some of the burden for families.  You can claim attendant care expenses for a dependent relative and there is no requirement that person requiring care have to live with supporting relative. However, there are certain conditions for the credit. An elder who live in nursing home may want to claim attendant care expenses as qualifying medical expenses.  Your accountant should pay special attention to interaction between disability tax credit (DTC) and medical expenses tax credit (METC).  If these credits are not claimed properly, you may not be getting maximum available credits.

Car expense deduction

If you have to use your own car for your employment and your employer gives you a small allowance then you may be better off by including car allowance as income and claiming car actual expenses such as gas, repairs, insurance, license plate, parking, car wash etc. Keep a good record of all expenses and retain receipts. Also, complete form T2200 (“Declaration of Employment Conditions”) and have you employer sign it.

What is Foreign Accrual Property Income (FAPI)?

FAPI stands for foreign accrual property income and comes into play when taxpayers own a foreign corporation that is earning passive income. Passive income includes royalties, interest, rent etc. If a taxpayer incorporates a foreign company, and has that company buy a rental property offshore, most people think if they do not repatriate any of the income (i.e. sending money to themselves), the money the company receives is not subject to tax in Canada. This assumption is incorrect. For Example, A foreign corporation, owned by a Canadian resident spends $500,000 on a rental property in the Bahamas. FAPI will now come into play.

If a corporation earns rental income, that income is taxed in your hands personally here in Canada. If the passive (rental) income is being earned in a country that has a tax treaty with Canada, then taxpayers would receive tax credits in the amount already paid in the other country

However, if a foreign corporation's main business is selling and renting homes then income would be considered active income if corporation employs more than five full time employees to earn income. There are separate active income test in order to avoid FAPI.  We would be glad to help you if you want to know more about FAPI tax.

You can deduct home office expenses from your salary (i.e. employment income)

If your employer requires you to pay expense to earn employment income then you can deduct most of your employment expense on line 229 of your personal Income tax return. You should maintain a good record keeping of all your expenses.  Your employer must complete and sign form T2200 (Declaration of Condition of Employment) which you need to attach with your tax return. Depending upon your circumstances, you may be able to deduct following expenses:

  • Home office expenses 
  • Accounting and legal fee
  • Advertisement and promotion
  • Allowable motor vehicle expenses
  • Food, beverage, and entertainment expenses 
  • Lodging
  • Parking 
  • Supplies 
  • Other related expenses

What is difference between Rental or Business Income?

Sometime it is difficult to determine whether rental income from property or from business.  The most important factors in determining income source are the number and kinds of services you provide for your tenants.  It is property income if you are earning income from property by renting space and providing basic services only which includes heat, light, parking and laundry services. If you provide additional services to tenants such as cleaning, security, and meal then you may be carrying on business. Bottom line is, more services you provide, the greater the chance that the rental operation is a business

What is Tax Free Section 85 rollover?

You started your business as proprietor and over the year your business has grown. You want to incorporate a company to optimize your tax savings. Section 85 of The Income Tax Act allows you to transfer property (in proprietorship business) to your corporation without any immediate tax impact. This transfer is called “rollover” which allows you to avoid immediate capital gain taxes.   For Example, You transfer a capital property to your corporation. The fair market value (FMV) at the time of transfer is $100,000 which you purchased  at $25,000. You incorporated a company and received 100 common shares in the corporation and elected to transfer the property at $25,000 (cost) to the corporation. By this section 85 rollover, you will not pay capital gain tax on $75,000 gain (i.e. FMV - $100,000 minus cost $25,000). The corporation’s cost of the property will be $25,000 and the cost of 100 common shares will be $25,000.  Please note that 85 rollover is a defferal of capital gain tax rather than complete exemption from tax. For more info, please contact us.

Joint Tenancy vs. Probate Fee

Property can be owned as joint tenancy. On the death of one joint owner, the property held in joint tenancy normally passes by right of survivorship to the surviving owner which is normally not considered part of the estate of the deceased joint owner. In this situation, the property can be transferred without probate and is not subject to probate fees.  Please contact us to know more.

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