Canadian Taxation of Stock options – Part 2

by margento | January 6, 2021

Part 1 of this 3-part series explained the taxation of U.S. stock options.  In this article we will discuss the tax implications of Canadian stock options. The tax consequences resulting from Canadian stock options is differentiated by the type of company that is granting the option. This is because stock options grant by Canadian controlled …

U.S. Taxation of Stock Options – Part 1

by margento | December 15, 2020

Introduction Stock option plans are a popular method to attract, motivate, and create loyalty among employees in both Canada and the US. The tax treatment of stock options is complex, and rules vary between different countries. This article is part-one of a three-part series.  First, we will discuss US tax implications of stock options.  Part-two …

New Rent Subsidy – Canada Emergency Rent Subsidy (CERS)

by margento | December 9, 2020

The Government of Canada rolled out a new rent subsidy retroactively covering September 27, 2020 until June 2021. This new rent subsidy is similar to the previous rent subsidy originally announced at the beginning of the pandemic, however, this version does not require the participation of landlords. Eligibility criteria To be eligible for the CERS …

What is Global Intangible Low-Tax Income (GILTI)?

by margento | November 23, 2020

Global Intangible Low Tax Income (GILTI)was introduced as part of the Tax Cuts and Jobs Act that was signed into law in December 2017. Its purpose is to discourage US taxpayers from shifting corporate profits outside the US to low income tax or zero-tax jurisdictions. GILTI results in tax being imposed on the earnings of …

Tips for Cloud Accounting and Online Bookkeeping

by margento | November 18, 2020

Welcome to the 21st century!  A new paradigm for accounting through cloud computing.  Digitization and automation are progressing quicker than what most people can keep up with.  Business owners are constantly bombarded by new apps and technology that seem to be getting better and better.  Is your accounting system equipped with the latest and greatest …

Thinking of purchasing a new vehicle? Consider a zero-emission vehicle and take advantage of tax incentives.

by margento | November 2, 2020

Are you in the market for a new vehicle?  The Government of Canada has come up with tax incentives to steer taxpayers towards purchasing zero-emission vehicles in efforts to reduce greenhouse gas emissions in Canada. What is a Zero-emission vehicle?  The CRA has defined zero-emission vehicles into the following categories. Plug-in hybrid Electric Powered by …

Working from home? Consider claiming home office deductions.

by margento | October 23, 2020

Since the COVID-19 pandemic many employees now have the option to continue working from home. This leave taxpayers wondering if they can deduct home office expenses related to their employment income on their 2020 tax return. Here is everything you need to know about being eligible for home office deductions. Typically, an employee can claim …

Are You a Day Trader or Investor? Here is How that affects your Taxes.

by margento | October 15, 2020

A growing number of taxpayers are trading on the stock market using online broker accounts. Knowing how to report gains/losses from trading activity accurately on your tax return is especially important since failing to do so can end up being a costly mistake and leave you owing lots of money to CRA. The most important …

A look at the new Canada Recovery Benefit (CRB)

by margento | October 5, 2020

Many people are still being impacted by the COVID-19 pandemic and require support.  The Government of Canada has introduced three new benefit programs, The Canada Recovery Benefit (CRB), The Canada Recovery Sickness Benefit (CRSB), and the Canada Recovery Caregiving Benefit (CRCB).  In this article, I will discuss the features of the Canada Recovery Benefit. Before …

Are you a plumber, electrician, or HVAC company? Don’t miss out on claiming your apprenticeship tax credits!

by margento | October 2, 2020

Apprenticeship Tax Credits are available for salaries paid to eligible apprentices working under various trades programs.  Employers who hire apprentices registered in Red Seal programs are eligible to claim: Tax credit for each apprentice who is in their first 24 months of apprenticeship for 10% of wages up a maximum of $2,000 per year. Employers …

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