5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies

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When getting an extension granted with the Tax Court of Canada is a breeze

It was another good day at the Tax Court of Canada. Our client, who is a school teacher, is involved with the Global Learning Group Inc. tax shelter*, was seeking an extension to file an appeal due to circumstances beyond her control, including the pandemic, the death of a parent, and health issues.

CRA procedures can be confusing at times. After filing an objection with them and being denied, she appealed with the CRA instead of the tax court, and ran out of the prescribed deadlines. That is when we stepped in, successfully presented and argued her case in the #Tax #Court of #Canada and got her extension granted. We will follow up on the continuation of this case.

At the Tax Mechanic, we know the rules, the procedures, what works and what doesn’t. If you have a tax court case or considering filing an appeal, or if you even have an objection with the CRA’s assessments, call us!

*We have covered the GLGI tax shelter last year. If you are involved with it and need tax and legal support, contact us, we may be able to help!

Global Real Estate Trends - What is really happening and where to park your money

The prevailing theme in the world of real estate in 2023 is one marked by caution following the uncertainty driven by soaring inflation and rising interest rates that have characterized the past 12 months.

Real estate investment experts and extensive regional surveys conducted jointly by PwC and the Urban Land Institute across Europe, the United States, Canada, and the Asia Pacific note their working assumption that both inflation and interest rates will reach their zenith in 2023.
However the real estate market will continue to maneuver in a relatively high-interest rate environment compared to the near-zero rates experienced in the years following the Global Financial Crisis (GFC). Abundant liquidity, loose monetary policy, and cap-rate compression that once favored real estate investments is now history.
Read more here!

Join the conversation next Tuesday at noon on my TikTok channel, as I may have some ideas for you! https://www.tiktok.com/@taxmechanic
See you there!

GST Removal on Rental Building Constructions: A Masterpiece of Illusion or a Trudeau Special?

Well, folks, gather 'round for the grand unveiling of the latest act in the political theater that is Canadian housing policy. The federal government has announced with great fanfare that they will graciously remove GST charges from new rental building constructions. Cue the applause, right? Wrong.

This dramatic gesture follows a promise made by the Liberals back in the heady days of the 2015 federal election. But like a magician with a penchant for pulling rabbits out of hats and then promptly losing them, they conveniently dropped this commitment and left it out of their 2019 and 2021 platforms. Now, they want you to believe it's part of a magical suite of affordability measures to combat the rising cost of living.

Read the rest here!

10 Accounting Tips for small businesses vs
the Monthly Accounting Packages by the Tax Mechanic

Sound financial management is essential for the long-term success of your small business. By following these accounting tips and staying proactive with your finances, you'll be better equipped to navigate the challenges and opportunities that come your way.

To help you navigate the world of accounting for your small business, here are some essential tips tailored to small businesses we gathered for you:

1. Maintain Accurate Records: Keeping detailed and organized financial records is the cornerstone of effective accounting. Use accounting software or hire a professional bookkeeper to ensure your income, expenses, and transactions are well-documented.

2. Separate Personal and Business Finances: This is critical. Opening a dedicated business bank account prevents mixing personal and business funds, simplifying accounting, and providing clarity for tax purposes.

3. Create a Budget: Developing a budget helps you plan your spending and revenue goals. It's a roadmap for managing your finances throughout the year, ensuring you stay on track.

4. Monitor Cash Flow: Cash flow is the lifeblood of any business. Regularly review your cash flow statement to understand how money moves in and out of your company. It helps you anticipate and address potential financial challenges.

5. Set Aside Taxes: Don't forget about taxes. Set aside a portion of your revenue for income and sales taxes. Failing to do so can result in financial strain come tax season.

6. Stay on Top of Invoicing: Timely and accurate invoicing ensures you get paid promptly. Implement clear payment terms and follow up on overdue invoices to maintain healthy cash flow.

7. Monitor Expenses: Keep a close eye on your expenses. Identify areas where you can cut costs without compromising the quality of your products or services.

8. Reconcile Accounts Regularly: Reconciliation involves matching your financial records with those from your bank and credit card statements. This process helps catch errors and discrepancies early.

9. Plan for Growth: As your business expands, your accounting needs will evolve. Prepare for growth by investing in scalable accounting software and seeking professional advice when necessary.

10. Prepare for Emergencies: Build an emergency fund to cover unexpected expenses or downturns in your business. Having a financial cushion can prevent your business from going under during tough times.

OR

Have the Tax Mechanic do all that for you for a monthly fee. Our Accounting Packages start from $500/month depending on the size of your business, and include monthly accounting, accounts reconciliation, tax planning and your regular tax returns - YES, YOU’VE HEARD THAT RIGHT! We take care of your taxes as well, on time, so you can skip the panic and the headaches. It’s a sweet deal isn’t it? Book a call to discuss, no obligation!

This is how the CRA "f..k" you over...

They will file your tax returns for you. These are fake returns. CRA says: “…”

Go to my TikTok channel to watch the video!

And that, my friends, would be IT for this Friday.
Have a safe and fun-filled weekend, and if tax problems weigh you down, all it takes is a call to start fixing them: