Prairie Cove Tax & Accounting

Prairie Cove Tax & Accounting Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from Prairie Cove Tax & Accounting, Tax preparation service, 122 1st Avenue, Rosthern, SK.

01/05/2026

We wanted to share an update with our clients and community. After eight years as a partner, Rick Fiedosiewich has transitioned into semi-retirement. While he will no longer be a partner of Prairie Padgett Tax & Accounting Ltd. and co-owner of Prairie Cove Business Centre, we are happy to share that Rick will continue working with his clients and remain an important part of our team. I personally wish to thank Rick for his past contributions to our firm's success and his keen focus on client relationships and professionalism.
As part of this transition, our business name will be changing from Prairie Padgett Tax and Accounting to Prairie Cove Tax and Accounting. While our name is new, everything else remains the same — the same team, the same services, and the same commitment to taking great care of our clients.
If you have any questions, concerns, or comments, please reach out to us directly.
We wish Rick all the best as he transitions into his retirement.
Thank you for your continued trust and support as we move forward.'

12/17/2025

Due to the forecasted blizzard, our office will be closed today. If you need anything, email at [email protected].

12/15/2025

2025 Year End Planning Considerations
Start Preparing for Tax Season

As 2025 draws to a close, both individuals and owner-managers of Canadian-Controlled Private Corporations (CCPCs) should review their tax positions and consider strategies to minimize tax liabilities, optimize cash flow, and take advantage of new and existing tax incentives. This memo summarizes key year-end tax planning considerations, recent legislative changes, and practical steps to implement before December 31, 2025.

Year-end tax planning is essential for both individuals and CCPCs to optimize tax outcomes, preserve wealth, and ensure compliance with evolving tax rules. Given the complexity and frequent changes in tax legislation, consult with your Padgett advisor to tailor these strategies to your specific circumstances and to ensure all deadlines are met.

Year-End Tax Planning for Individuals

A. Registered Plans and Savings

RRSP Contributions

The 2025 RRSP contribution limit is $32,490 (18% of 2024 earned income, less pension adjustments). Contributions for 2025 must be made by March 2, 2026, but earlier contributions maximize tax-deferred growth.

If you turn 71 in 2025, you must convert your RRSP to a RRIF or annuity by December 31, 2025, and make any final contributions before that date. Consider a spousal RRSP if your spouse is younger.

TFSA Contributions

The 2025 TFSA limit is $7,000. Unused room from prior years carries forward. Withdrawals made in 2025 will only increase contribution room for 2026. Over-contributions are penalized at 1% per month.

First Home Savings Account (FHSA)

Annual contribution limit is $8,000, with a $40,000 lifetime maximum. Contributions are deductible, and qualifying withdrawals are tax-free. Consider opening an FHSA before year-end to start accruing room, even if you do not plan to buy a home soon.

RESP and RDSP Contributions

December 31 is the deadline for 2025 contributions to maximize government grants (CESG for RESPs, CDSG/CDSB for RDSPs). RESP contributions are not deductible, but growth is tax-deferred.

B. Charitable Donations

Donations must be made by December 31 to claim a 2025 tax credit. The federal credit is 15% on the first $200 and 29% (or 33% for income over $253,414) on amounts above $200, plus provincial credits.

Donating publicly traded securities with accrued gains eliminates capital gains tax and provides a receipt for fair market value. Be mindful of the new Alternative Minimum Tax (AMT) rules, which may limit the benefit of donation credits and increase the inclusion of capital gains for high-income earners.

C. Tax-Loss Selling

Realize capital losses by December 30, 2025 (to allow for trade settlement), to offset capital gains realized in 2025 or the prior three years. Losses not used can be carried forward indefinitely.

Beware of the superficial loss rules: if you or an affiliated person repurchases the same security within 30 days, the loss is denied and added to the adjusted cost base of the repurchased security.

D. Income Splitting and Family Planning

Consider paying reasonable salaries to family members for actual work performed in a business. Salaries must be paid by year-end to be deductible in 2025 and must be reasonable for the services provided.

Spousal RRSPs and pension income splitting can help reduce family tax burdens.

The Tax on Split Income (TOSI) rules may apply to dividends and certain other income paid to family members, potentially subjecting them to the highest marginal tax rate unless specific exclusions apply.

E. Other Key Deadlines

Pay deductible expenses (e.g., investment loan interest, childcare, medical expenses) by December 31 to claim in 2025.

Year-End Tax Planning for CCPCs

A. Small Business Deduction (SBD) and Passive Investment Income

The federal SBD limit remains at $500,000 for most provinces (higher in NS and PEI as of 2025). The SBD is reduced by $5 for every $1 of adjusted aggregate investment income (AAII) above $50,000 in the previous year and eliminated at $150,000 of AAII.

Consider deferring the realization of investment income or capital gains to preserve SBD access. Expenses incurred to earn investment income (e.g., interest, investment counsel fees) can reduce AAII if reasonable and properly documented.

B. Loss Utilization and Group Planning

Non-capital losses can be carried back three years or forward 20 years; net capital losses can be carried back three years or forward indefinitely.

Consider loss consolidation strategies within corporate groups, such as intercompany loans, asset transfers, or amalgamations, to utilize losses efficiently.

C. Capital Cost Allowance (CCA) and Immediate Expensing

Accelerated and immediate expensing measures allow for enhanced first-year CCA on eligible property:

Immediate expensing: For certain classes, like patents and computers, 100% CCA is available for property acquired after April 15, 2024, and available for use before 2027.

Manufacturing & Processing (M&P) buildings: Full write-off for eligible buildings acquired, or additions made, after November 4, 2025, and available for use before 2030.

M&P machinery, clean energy equipment, zero-emission vehicles: Immediate expensing for property acquired after January 1, 2025, and available for use before 2030.

Accelerated Investment Incentive Property (AIIP): Enhanced first-year CCA for eligible property acquired after January 1, 2025, and available for use before 2030.

Plan capital purchases before year-end to maximize deductions in 2025.

D. Owner-Manager Remuneration

Review the mix of salary and dividends. Salaries create RRSP room and are deductible to the corporation; dividends may be more tax-efficient in some cases and can trigger a refund of refundable taxes on investment income.

E. Shareholder Loans

Repay shareholder loans within one year after the end of the corporation’s tax year in which the loan was made to avoid income inclusion for the shareholder.

F. Dividends and Capital Dividend Account (CDA)

Consider paying out capital dividends before realizing capital losses, as losses will reduce the CDA balance and the ability to pay tax-free capital dividends.

PRAIRIE PADGETT TAX & ACCOUNTING WILL BE CLOSED TUESDAY, NOVEMBER 11 IN OBSERVANCE OF REMEMBRANCE DAY. WE'LL BE BACK OPE...
11/10/2025

PRAIRIE PADGETT TAX & ACCOUNTING WILL BE CLOSED TUESDAY, NOVEMBER 11 IN OBSERVANCE OF REMEMBRANCE DAY. WE'LL BE BACK OPEN ON NOVEMBER 12, 2025 .

PRAIRIE PADGETT TAX & ACCOUNTING WILL BE CLOSED TUESDAY, SEPTEMBER 30 IN RECOGNITION OF NATIONAL TRUTH & RECONCILIATION ...
09/29/2025

PRAIRIE PADGETT TAX & ACCOUNTING WILL BE CLOSED TUESDAY, SEPTEMBER 30 IN RECOGNITION OF NATIONAL TRUTH & RECONCILIATION DAY. WE'LL BE BACK OPEN ON OCTOBER 1ST, 2025 .

09/10/2025

Allowable Business Investment Loss

Allowable Business Investment Loss (“ABIL”)

A loss on an investment in a company you own or made in another person’s small business can qualify for some advantageous tax rules to help ease the impact of the loss on your finances. Whether the investment was in shares or a loan to a small business it may qualify for a deduction against your personal income. Unlike regular capital losses,which can only be used to offset capital gains, an ABIL can be used to offset other sources of income, such as employment or business income.

Eligibility Criteria

· Type of Corporation: The loss must be incurred on shares or debt of a Canadian-controlled private corporation (CCPC) that qualifies as a small business corporation at the time of the investment or at any time during the 12 months before the disposition or the debt becoming bad.

· Nature of the Loss: The loss must arise from the disposition of shares or debt (e.g., a loan) of a small business corporation. The loss can be from selling shares at a loss, or if a debt owed to you by the corporation becomes uncollectible (bad debt).

Qualifying as a Small Business Corporation

Allowable Business Investment Loss (“ABIL”)

A loss on an investment in a company you own or made in another person’s small business can qualify for some advantageous tax rules to help ease the impact of the loss on your finances. Whether the investment was in shares or a loan to a small business it may qualify for a deduction against your personal income. Unlike regular capital losses, which can only be used to offset capital gains, an ABIL can be used to offset other sources of income, such as employment or business income.

Qualifying as a Small Business Corporation

· A small business corporation is defined as a CCPC where all or substantially all (generally interpreted as 90%

or more) of the fair market value of its assets are used in an active business carried on primarily in Canada.

Calculation of ABIL

· Initial Calculation: The capital loss is first calculated in the same way as any other capital loss.

· ABIL Deduction: Once the capital loss is calculated, 50% of the loss can be claimed as an ABIL. This portion is the allowable amount that can be deducted against all types of income, not just capital gains.

Limitations

· The disposition of loans or shares must be to an arm’s length person unless a special election is filed.

· In most of the cases for small businesses, it is by filing the special election that the investor can write-off their investment as an ABIL. In these cases, it’s important that the corporation not be dissolved before December 31st of the year the election is to be made. Furthermore, there are conditions to meet in filing the election.

For a loan, it must be deemed as uncollectible, and for shares, the corporation must have ceased operations, be insolvent and will likely be wound up. If the loss results in an ABIL, but the corporation later recovers, the ABIL will need to be reversed or adjusted.

Documentation

· CRA will always review this type of deduction and will request supporting documents to support your claim.

· You must maintain adequate records such as documentation that there was a disposition of the investment orthat the election was filed, that the loan is uncollectible, that the corporation is insolvent, and evidence that the corporation qualifies as a small business corporation.

If this unfortunate situation has impacted you, consult with your Padgett advisor to make sure that you can at least minimize your income taxes.

08/29/2025

Prairie Cove Business Centre improvements

A very big thank you to Dale Denham of Denham Awning Makers, Saskatoon for his personal, professional service and quality product and installation. Beautiful looking awnings to keep us cool.

08/08/2025

Understanding Deductible Meal Expenses for Your Businesses

Eligibility Criteria

Understanding what qualifies as a deductible meal expense for tax purposes can help small business owners avoid costly reassessments if the Canada Revenue Agency (CRA) reviews this category of business deductions. The CRA allows businesses to deduct meal expenses that are incurred to earn business income.

Here are the general conditions to be aware of:

1. Business Purpose: The meal expense must be directly related to the business. This means the expense should be incurred while conducting business, such as meetings with clients, potential clients, or business partners. This does not mean that because you are too busy with a heavy workload you need an Uber Eats lunch supplied. That would be considered a personal expense.

2. Reasonableness: The cost of the meal should be reasonable in relation to the context in which it is incurred. Lavish or extravagant expenses are unlikely to be considered reasonable and may not be fully deductible.

3. Documented Proof: Keep detailed records of all meal expenses, including receipts and the purpose of the meal. The documentation should include the date, location, attendees, and the business purpose.

Deduction Limitations

The CRA imposes a limitation on the amount of meal expenses that can be deducted. Generally, only 50% of the meal expense is allowed as a deduction. This applies to meals consumed during business meetings, conferences, and travel related to business activities.

Exceptions to the 50% Rule

There are certain circumstances where the 50% limit does not apply, and the full cost of the meal can be deducted.

These exceptions include:
1. Special Events for Employees: Meals provided at a Christmas party, annual picnic, or other special events for all employees, for up to 6 events per year, are 100% deductible.

2. Meals Included in Employee Income: If the cost of the meal is included in an employee's income as a taxable benefit, the employer can deduct 100% of the expense.

3. Invoicing the customer: If the cost of the meal is itemized on your invoice to your customer, it is 100% deductible.

4. A business that typically provides food & beverage as their main source of revenue: such as a restaurant or hotel, can deduct 100% of meals.

5. Long-haul Truck Drivers: Provided they are away for 24 continuous hours and are driving a long-haul truck that transports goods to or from a location that is at least 160 km from the place of work/business, 80% of the meal can be deducted.

6. Remote work locations: When meals are provided at work camps, where it is not reasonable for the employee to return home at the end of the day, 100% of the meal cost is deductible.

Tips for Claiming Meal Expenses

A couple of last points to make about claiming your meals expenses. Documentation is key: It’s important to maintain accurate records because CRA will always scrutinize this type of expense when auditing a business. Ensure you keep all receipts and records of meal expenses. Note the names of attendees and the business purpose on the receipts.

Use a Business Credit Card: Paying for meals with a business credit card can help keep personal and business expenses separate, making it easier to track and claim deductions.

By understanding the eligibility criteria, limitations, and exceptions, business owners can ensure they are accurately claiming these expenses.

Address

122 1st Avenue
Rosthern, SK
S0K3R0

Opening Hours

Monday 8am - 4pm
Tuesday 8am - 4pm
Wednesday 8am - 4pm
Thursday 8am - 4pm
Friday 8am - 4pm

Telephone

+13062324340

Website

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