5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies

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Shenanigans Media Inc. vs The Queen - A case study

What can you safely expense? This tax court case involving appeals by Shenanigans Media Inc. and Dylan Philip Everett against the Minister of National Revenue’s assessments made for the taxation years 2009, 2010, and 2011 revolves around that question.

The appeals dealt with various expenses claimed by Mr. Everett, an actor, and his company Shenanigans Media Inc. Let’s look at some details:

It started by the Minister disallowing various expenses claimed by Mr. Everett, including those related to advertising, business promotion, makeup/hair, management/chaperone, research and development, rent, travel, wardrobe, automobile expenses, and entertainment. In court it was emphasized that the inherently personal nature of wardrobe and grooming expenses should be factored in, since the claimed amounts were mostly for regular clothing and grooming items. Read more here!

Welcome back, Jason! - a MUST READ

…who is our success story after beating cancer!!! Jason, our most sought after tax specialist was diagnosed with an advanced case of testicular cancer in the summer of 2022, which shocked the whole Tax Mechanic team. He has spent 2 weeks in the ICU due to the spread of cancer to his lungs.

He underwent an initial chemotherapy treatment over 4 months and was stable until May of 2023 when he suffered stroke-like symptoms and learned that his cancer had come back. Next he underwent a procedure called a stem cell transplant with very strong chemotherapy.

During his hospitalization for this procedure, he had a change of heart about what he wanted to do with his life, which was to help people in the medical field. He decided to go back to school for nursing because he has received so much physical and emotional support from his nurses over the past 1.5 years.

He is now enrolled in the Toronto Metropolitan University's Nursing program to become an oncology nurse and help other cancer patients.

While he is not yet officially cured of cancer, he remains hopeful that he can accomplish this goal. He is still passionate about accounting and tax, and he has returned to the Tax Mechanic to use that passion to support his nursing journey… If you would like to drop him a line or support him in any way, please reach out by replying to this email!

Reminder: TFSA limit increase!

The CRA has increased the contribution limit on the TFSA (Tax-Free Savings Account) for 2024 to $7,000, up from $6,500 in 2023 and $6,000 in 2022. That's like getting a raise but for your savings game.

Eligible individuals can contribute up to $7,000 to their TFSA in 2024 without incurring any taxes on the investment income earned within their account.

TFSA contribution limit is cumulative, meaning that individuals who have never contributed to a TFSA and have been eligible for one since its inception in 2009 will have a cumulative contribution room of $95,000 in 2024. Read more here!

Question of the week: Do you have a minute book?

Is your business a Canadian Controlled Private Corporation (CCPC)? 
Then this is for you.

As you might know, maintaining a minute book is a legal requirement for corporations, including CCPCs. Provincial legislation mandates the keeping of corporate records, including minutes of meetings. and not having one could get you into trouble and operating without one could lead to legal issues.

Let’s look at the purpose of minute books. They serve as evidence that a corporation is conducting its affairs with legal and governance standards.

What happens if you don’t have a minute book? Read more!

Canadian Tax Credits

Hey Canada! Time to unlock the Great White North’s tax secrets. Click to find out!

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: