Eileen is a realtor with a Personal Real Estate Corporation (PREC).
She came to our firm after waiting for a very long time to obtain a reply from her former accountant.
When we went over the last year’s records prepared by her former accountant, we discovered a number of issues that were related to poor planning and communication from her former accountant.
One issue was the lack of planning in the area of GST, particularly the Quick Method, which would have resulted in over $1,000 in tax savings if there was better planning in advance.
Another issue was the lack of communication regarding income tax and GST instalment requirements, which resulted in significant late instalment interest penalties that could have been avoided.
A third issue was that a transaction was a legitimate business expense was recorded incorrectly as a personal withdrawal.
Lastly, there was a lack of dividend tax planning from the corporation to the personal income taxes that resulted in missed tax savings of over several thousand dollars.
After coming over to our firm, we helped Eileen maximize her tax savings by electing the GST Quick Method and ensuring all eligible business expenses are being claimed. We also educate Eileen to be more aware of certain tax requirements as well as real estate taxes.
Peter is a family physician who moved from another province.
Our firm was able to offer a better price for the bookkeeping and tax filing services while providing a high quality service level for Peter’s medical corporation.
We provided tax advice in various issues such as moving costs, home office expenses and dividend versus salary distribution.
Particularly, we analyzed Peter’s personal cash needs and recommended the amount of dividend/salary mix to optimize the taxes.
Also, corporation has a balance in the Capital Dividend Account (CDA) and Peter wanted to withdraw the amount tax-free.We helped calculate the CDA balance and filed the required tax forms to ensure the dividends would not be subject to any CRA penalties.
Yumi is an interior designer with a successful business called YU+ME Design. She has been using our firm’s services for over 5 years.
As Yumi’s business and sales grew, we proactively monitored the tax situation and discussed the various tax issues with Yumi. Particularly, it became evident that Yumi would benefit from incorporation after the business has grown substantially. We discussed the pros and cons of a corporation with Yumi to help her make an informed decision.
We also facilitated her transition from self-employment (or sole proprietorship) to corporation to ensure everything goes smoothly. This includes making sure the GST account is setup, providing instructions on opening a separate bank account, and accounting correctly the various business transactions such as sales, expenses and various project costs.
Yumi is now incorporated and we are able to take care of the company’s bookkeeping, accounting, financial statements and the various required tax filings.
Yumi is then able to focus on building her business and create beautiful interior design for her clients.
Carrie is a Registered Massage Therapist who owned and operated an expanding health clinic under a company.
She first came to us because of delays from her previous accountant as well as some mix up with the GST account when she transitioned from self-employment to incorporation.
We were able to perform her company’s work on a timely basis and was quick to respond to her questions. We also identified and resolved some the accounting errors originated from her previous accountant.
Recently, Carrie decided to sell her practice. We provided tax advisory during the sales process to ensure she was aware of the various tax implications. Particularly, we discussed the sale of assets versus the sale of shares and their pros and cons. We also assisted with the calculations to help her determine the fair market value of her business.
At the end, Carrie successfully sold her company shares to the new owners and took advantage of the lifetime capital gains exemption that meant she didn’t have to pay any taxes on the sales proceeds.
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