Wayne J Kennedy Professional Corporation

11/05/2024

IN BUSINESS? TAKE THE TIME TO LISTEN TO THIS VIDEO!!

I think everyone has experienced a friend wanting you to do something and you do not feel like doing it. Today a friend of mine sent me a text on listening to John Bragg, Owner of Oxford Foods in Nova Scotia. I did unwillingly but I am so glad to have done so and I recommend anyone in business to listen to the YouTube interview. Here is the link:

John Bragg, founder of Oxford Frozen Foods and Eastlink (the largest privately held telecommunications company in North America), shares his journey from gro...

02/28/2024

2024-25 amounts announced for the Canada Carbon Rebate (previously known as the Climate action incentive payment)

The Canada Carbon Rebate (CCR) (previously known as the Climate action incentive payment (CAIP)) is how the federal government returns the proceeds of carbon pollution pricing to families in provinces where the federal backstop system applies. The name was updated to the Canada Carbon Rebate to clarify its function and make its meaning and relationship to the carbon pricing system more intuitive for Canadians.

The government recently announced the 2024-25 amounts for the CCR.

Starting this April, a family of four will receive Canada Carbon Rebates of:

$1,800 in Alberta ($450 quarterly)
$1,200 in Manitoba ($300 quarterly)
$1,120 in Ontario ($280 quarterly)
$1,504 in Saskatchewan ($376 quarterly)
$760 in New Brunswick ($190 quarterly)
$824 in Nova Scotia ($206 quarterly)
$880 in Prince Edward Island ($220 quarterly)
$1,192 in Newfoundland and Labrador ($298 quarterly)
The Canada Carbon Rebate is a tax-free amount to help eligible individuals and families offset the cost of federal pollution pricing. It is paid quarterly in April, July, October and January and is available to eligible residents 19 years and older from Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Newfoundland, Nova Scotia and Prince Edward Island.

Individuals who file their taxes electronically by March 15, 2024, should receive the next CCR payment on April 15, 2024. Those who file after March 15, 2024, will receive their payment later after their returns have been assessed. To receive the CCR, individuals must file their tax and benefit return each year. For married or common-law partner, they both have to file or provide their spouse or common law partner’s income on their tax and benefit return.

Please note that the name change to Canada Carbon Rebate may not be reflected immediately by financial institutions and the name of the direct deposit payment may still use a version of CAIP in the short term. It does not impact an individual’s eligibility for the payment or the amount they will receive, and there should be no interruption to scheduled spring payments. However, if your client’s payment does not arrive as anticipated, please advise them to wait 10 business days before contacting the CRA.

Call now to connect with business.

02/07/2024

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/important-dates-rrsp-rrif-rdsp.html

Décès du rentier d'un REER ou d'un FERR - Exemple

01/15/2024

I am now providing bookkeeping services to small businesses in Nova Scotia. If I can be of assistance please phone or send me a message.

Call now to connect with business.

01/06/2024

For new updates on CEBA loan repayments make sure you check with your bank before January 18, 2024. See their website for details:

The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to Canadian small businesses and not-for-profits.

11/02/2023

Government of Canada extends deadline for homeowners to file their Underused Housing Tax return
From: Canada Revenue Agency

News release
October 31, 2023 Ottawa, Ontario Canada Revenue Agency

The Minister of National Revenue announces that owners affected by the Underused Housing Tax (UHT) will have until April 30, 2024, to file their returns for the 2022 calendar year without being charged penalties or interest.

This transitional relief will allow more affected owners to meet their obligations under this new law, which is part of the Government’s long-term plan to increase available housing for Canadians. Consequently, the Canada Revenue Agency will waive the application of penalties and interest for any late-filed UHT returns and for any late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT is paid by April 30, 2024.

"The Underused Housing Tax is one part of our plan to combat the housing shortage,” says the Honourable Marie-Claude Bibeau, Minister of National Revenue. “We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations.”

The UHT is an annual 1% tax on the ownership of vacant or underused housing in Canada. It is a federal tax that is independent of other provincial and municipal taxes on vacant or underused housing in Canada. It generally applies to foreign national owners of Canadian residential property, but it’s important to note that some Canadian individuals (namely those who own residential property as a partner of a partnership or as a trustee of a trust) and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax. These owners are referred to as “affected owners”.

The vast majority of Canadian individuals who own residential property are excluded owners and, therefore, do not have to file a UHT return or pay the tax. It is the duty of the owner of Canadian residential property to determine if they are an affected or excluded owner.

How to determine if you are an “affected owner”
The CRA has published a new online self-assessment tool. This tool helps you to find information you need to determine if you:

Need to file a return and pay the tax; or
Need to file the return but not pay the tax because you may qualify for an exemption from paying the UHT; or
Do not have to file a UHT return or pay the tax because you are an excluded owner.
If you’re an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.

Filing the Underused Housing Tax return
The fastest and easiest way to file your UHT return is through My Account and My Business Account.

If you are not registered for the CRA’s online portals, you can file your UHT return electronically, but you will need:

one of the following valid CRA tax identifier numbers:
social insurance number
individual tax number
business number, and
A digital access code
You can also file your return by mail or fax. Visit our File the return page to find out more.

More information
To learn more about the Underused Housing Tax, visit canada.ca/cra-uht.

For more information that can save you time, we encourage you to visit UHTN15, Questions and Answers on the Underused Housing Tax - Canada.ca.

Associated links
Who must file a return and pay the tax - Underused Housing Tax (UHT) - Canada.ca
Underused housing tax technical information - Canada.ca
Contacts
Simon Lafortune
Press Secretary
Office of the Minister of National Revenue
[email protected]

Media Relations

10/05/2023

THIS WEEK: THE MISSION OF MY FIRM

The accounting firms I worked for always gave maximum time to clients to make sure the clients understood their financial situation. Now that I have opened my firm I will keep up this tradition, not for tradition’s sake but because it is right.

My firm is small, and it is going to stay that way. The reason is to spend more time with each client so they understand the numbers and how they can make their financial situation more secure for themselves and their families.


If you become a client of mine, expect to have your emails and telephone calls answered promptly. I will also be contacting my clients during the year to see how they are doing. I do not want my firm to give you your tax return and invoice, and the 'see you next year' attitude.

NEXT WEEK: DO I NEED TO FILE MY TAX RETURNS EACH YEAR?

09/25/2023

THIS WEEK: BUILDING YOUR OWN HOME.

I came across a carpentry textbook and last Winter I started reading it. What I found interesting about this textbook is it gave the time based on the size of the home to do each part of building a house from the footing to finish. It made me think.

The fact is you have the time to spare, have a great architect, are great at planning, know each step in the building process, and you could be the general contractor building your new home. The following are four examples of people who played a part in building their own homes.

1. A friend of mine went every day after work to check on the construction of his home.

2. A former neighbour of mine did part of the carpentry work himself under the direction of the carpenter he hired.

3. A retired couple I know of has decided to build another house for themselves, and they are going to be their general contractor.

4. It is not easy, a former employer who had a good carpenter once said to me, “Wayne, never build a house!.”

This is not a posting to tell everyone to be their general contractor, but it is for the reader to determine if they have the skills, the time, and the desire to take on the task. If not, interview the various developers in your area and pick the one you are most comfortable with and within your budget. If you feel you are up to the task of being your own general contractor then it is possible that you could save money and have the house you always dreamed of.

But remember never to build on a flood plain or put your new home in a wooded area.

NEXT WEEK: THE MISSION OF MY FIRM

Send a message to learn more

09/18/2023

THIS WEEK: MANAGING THE COST OF PAYING OFF YOUR MORTGAGE

I believe it is the general thought that why should I pay down on my mortgage when I am getting a higher rate of return on my registered investments or non-registered investments?

To hold such an opinion, it does make sense. Plus, if you take money out of your investments you may have taxation issues. For example, if you remove money from your registered retirement savings plan you will be taxed. If you remove money out of non-registered investments you may be subject to capital gains tax. Plus, there is a loss of future growth in your investments because you are losing the income normally generated by these investments.

So, should you use your investments to pay down or pay off your mortgage? When it comes right down to it, depends on how risk adverse you are. If you are confident that your employment situation is going to remain acceptable into the distant future you may want to continue to make the monthly payments on your mortgage and see your investments grow. If you are like me it feels much better especially when economic times are rough to not have to worry about paying on your mortgage.

Some ways a homeowner can speed up the repayment of a mortgage. The first way is to pay your mortgage weekly instead of monthly, greatly reducing the amount of time repaying the mortgage and reducing the overall interest paid on the mortgage too. Do you have extra room? You could try renting a room to a person of similar character to yourself. Since Canada currently has a shortage of affordable housing it should not be a problem to rent out rooms if you do not need the space. If you have extra time on your hands maybe look at a flexible part-time job. The important thing to remember is the extra money earned less expenses on whatever approach you take make sure the extra money is put on your mortgage.
Lastly, it is important to talk to your accountant and financial planner first about the best way to reorganize your finances based on your earning power, taxation, the future value of your home, and your comfort zone with debt if you decide to use investments to pay down or pay off your mortgage.

But remember debt is debt and it must be repaid sooner or later – I am personally more risk-adverse, so I believe in sooner!!

NEXT WEEK: BUILDING YOUR OWN HOME.

09/11/2023

THIS WEEK: MORTGAGE AMORTIZATION
I have made several trips to Prince Edward Island to spend some of my vacation time there. Always very impressed with the province, which is very neat and clean, and the people are very nice. You might be wondering at this point what this has to do with mortgage amortization.

While in Prince Edward Island I noticed that the islanders are very frugal in their housing needs as there appear to be a lot of 1970s ranch-type bungalows. You know the ones that you never see built now. I think how clever they are for not building a house that will take a working lifetime to pay for. While paying for a home may be your greatest asset it should not take your working lifetime to pay your mortgage off.

I came across an interesting article by Bryan Labby from CBC News published on the CBC website on September 4th. It has I believe a lot of good information in it, but I also caution that you get the mortgage payment that suits your financial situation.

https://www.cbc.ca/news/canada/calgary/calgary-mortgage-longer-amortization-1.6952167

NEXT WEEK: MANAGING THE COST OF PAYING OFF YOUR MORTGAGE

Delays in paying off your mortgage could costs tens of thousands, impact savings and retirement, according to credit counsellor.