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- 5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
Tax Mechanic
October 25, 2024
Bite-size tax and finance-related information that could save you $$$
Welcome to Tax Mechanic Insights!
Your go-to newsletter for turning tax troubles into triumphs. Whether you're handling personal or corporate taxes, our seasoned experts are here to guide you every step of the way. Today’s edition is brought to you by Tax Mechanic – your trusted partner in navigating the complexities of the Canadian tax system.
At Tax Mechanic, we’re more than just a service; we’re a community. Join us today and take the reins of your financial future.
Impact of Online Platform Earnings on Your Taxes
Whether online platform earnings are your main income or a part of it, you must report all sources, including gifts and donations, when filing your taxes.
In the platform economy, income can be earned from:
Sharing Economy: Utilizing assets like cars and spaces.
Gig Economy: Short-term contracts, freelance work.
Peer-to-Peer (P2P): Selling goods, such as clothing.
Social Media Influencers: Significant online presence.
Self-Employment Status
Your employment status impacts how you’re treated under various laws. Check the Employee or Self-employed web page and consider requesting a ruling. Use the "Learn about your taxes" tool for a detailed overview.
Income Reporting
Proper income reporting enhances eligibility for loans and increases your registered retirement savings plan contributions:
Use lines 13499 and 13500 on your income tax return, or file corporate taxes if incorporated.
Complete Form T2125 for business activities.
For rental income, fill lines 12599 and 12600 and Form T776.
Claiming Business Expenses
Eligible business expenses include:
Advertising costs.
Platform usage fees.
Software licenses.
Keep thorough records to support your claims.
GST/HST Registration and Charges
Register for a GST/HST account if earnings exceed $30K over four calendar quarters, through Business Registration Online (BRO).
BRO
Important Notes🙂
Ridesharing income requires GST/HST collection, regardless of the amount earned.
Account for GST/HST on invoices if not collected by platforms.
Additional Information
For the most up-to-date information, visit the Taxes and the platform economy web page.
Source: Canada Revenue Agency.
Episode 639: Sam Parr and Shaan Puri Talk to Peter Rahal(RxBar Founder)
In this episode of My First Million, Sam Parr and Shaan Puri sit down with Peter Rahal , the mastermind behind RXBAR. Learn how Peter started RXBAR with just $10K and scaled it to a whopping $600M exit. They dive into:
🎧 Tune in to hear:
RXBAR’s incredible journey to $600M
Branding that solves problems
David Protein's rise
Big Ideas:
Differentiated vasodilator
The coffee of sleep
New religion concepts
Peter also shares why he's back in the game with another bar, how to survive the first year after a major exit, and the future prospects for his new venture, David.
Maximize the Potential of Your Corporation's Tax Losses
Unlocking the Value of Tax Losses
Tax losses can be a hidden asset for your corporation. In Canada, these losses can offer strategic value. If your corporation is currently experiencing tax losses, it might hold more potential than you realize.
d
Turn Tax Losses into Financial Gains
Strategies to Leverage Your Corporation’s Tax Losses
Sell Your Corporation- Corporations with tax losses can be highly attractive to other entities looking to offset their taxable income.
Acquire a Corporation with Tax Losses- If your goal is to reduce taxable income, purchasing a corporation with tax losses can be an astute financial move.
Get in Touch
Explore how you can maximize your tax losses to your advantage. Schedule a free consultation with us today to discuss the potential benefits and strategies tailored to your corporation.
By implementing these strategies, your corporation can turn tax losses into financial gains, providing a significant advantage in your financial planning.
CRA shocks woman by asking her to pay tax on money she hasn't yet earned
In an unexpected move, the Canada Revenue Agency (CRA) has issued tax installment notices to many Canadians, sparking confusion and concern. This notification primarily affects those who owe more than $3,000 ($1,800 for Quebec residents) in taxes for the year.
Why the Surprise? Mary Mullen from P.E.I., who thought she was being scammed, was shocked to learn that the CRA indeed requires advance payments on yet-to-be-earned income. While this practice aims to ensure timely tax collection, it has raised questions among taxpayers, especially amidst the financial strains brought by COVID-19.
Who is Affected? This requirement targets individuals with varied income sources such as self-employment, rental properties, or pensions, where taxes aren't sufficiently withheld. The CRA's reminders aim to help prevent falling behind on tax payments and avoid aggressive collection measures later on.
Understanding Your Options If you received a notice but expect to owe less than $3,000 ($1,800 in Quebec) this year, you can disregard the installment reminder. Those anticipating significant income changes can adjust their payments based on this year's earnings and request relief from penalties if unable to pay due to circumstances beyond control.
Communication and Clarity The CRA acknowledges the anxiety such letters can cause and emphasizes that it is not an attempt to penalize, but rather to ensure fair tax collection. Efforts are underway to improve communication, making it clear that installment payments can be adjusted to reflect actual income expectations.
For further guidance, taxpayers are encouraged to contact the CRA directly or consult experts like TAX-MECHANIC to navigate these requirements effectively.
Stay informed and ensure your tax matters are in order to avoid any surprises down the road.
Source: CBC News
Expert Guidance by Fraser Simpson: CRA Employees and CERB Claims
Latest TikTok Alert: Over 300 CRA employees have lost their jobs for improperly claiming CERB. 🚨 Watch Fraser Simpson from TAX MECHANIC as he breaks down what happened.
300+ CRA employees lost jobs over CERB
CRA taking strong action
330 employees left; 135 found eligible
Raises questions on case handling
If CRA employees involved, what's next for taxpayers?
Stay informed with Tax Mechanic
For more details, watch the video to get the full rundown.
Tax Mechanic and team helping people to gain Knowledge on social media too. Make sure, you follow Tax Mechanic to get the information you need.
Halloween Special Offer: Tax Mechanic’s Spine-Tingling Deal! 🎃
QuickBooks Online
GST/HST Reporting
Individual & Corporate Tax Returns
Free Risk Coverage Assessment
All for just $499/Month!
🔧 Why Tax Mechanic? 🔧
Exclusive Access: Get a dedicated technician and manager.
Expertise on Tap: Fraser Simpson with 40+ years dealing with CRA.
AI Agents: Cutting-edge support.
Community & Strategies: Join a network of tax strategies and shelters.
Focused Attention: Personalized service just for you.
And that, my friends, is it for this Friday. Have a safe and fun-filled weekend!
