Q&A: Long-term holds vs rent-to-owns: inactive vs. active income?

Posted on: February 27th, 2014 by Real Estate Accountants No Comments

Q.  We currently own 6 revenue properties, and over the last 6 years we have sold 5 revenue properties. We have always been buy and hold. We are considering entering into a Rent-to-Own agreement and I understand it will be taxed as active business income. It would be a one year or two year term. […]

Beware late filing penalties with the IRS

Posted on: February 26th, 2014 by Real Estate Accountants No Comments

In the past year, we have seen a significant increase in late filing penalties being assessed by the IRS. Both the number and size of the penalties are of concern. In fact, these late filing penalties are now being assessed even for failure to file information forms on a timely basis. In other words, no […]

Federal Budget 2014 – What it means for you

Posted on: February 13th, 2014 by Real Estate Accountants No Comments

As the federal government has been indicating for some time, the 2014 federal budget was relatively boring as budgets go. Really, it was meant to show the economic management prowess the government possesses. But, next year’s election year budget will be the one to really watch. Balanced budgets…and debt reduction? While quite happy to see […]

Online with CRA yet? Set up your personal and business accounts

Posted on: February 10th, 2014 by Real Estate Accountants No Comments

Canada Revenue Agency is providing access to more and more services online, and, given the recent closings of a variety of in-person desk-services at office across the country, they are expecting all of us to “get with the times” and get online too. The best part is that these online services make it convenient to […]

To err is human…even for the CRA and IRS

Posted on: January 29th, 2014 by Real Estate Accountants No Comments

We all make mistakes, and this applies equally to the Canada Revenue Agency and the Internal Revenue Service for the United States. But often when taxpayers get a letter or call from the CRA or the IRS, they assume that “the government must be right”. This is definitely not the case. We have had to […]

How do I find my federal business number?

Posted on: January 22nd, 2014 by Real Estate Accountants No Comments

To file any corporate tax returns or other correspondence with the CRA, you need a federal business number (or BN). When you incorporate a company, the government will automatically mail this to you. However, if you need a business number sooner, you can call CRA (1-800-959-5525) and ask for it. (As a tip when you call this […]

US Tax Filing deadlines – a cheat sheet for Canadians

Posted on: January 8th, 2014 by Real Estate Accountants 3 Comments

We are often asked about filing deadlines for US taxes, especially as we work with a number of people who own property in the United States via personal, corporate, or limited liability partnership structures. As well, we often help US citizens catch up on tax filings given the harder stance the US government has taken […]

Using employment expenses to get a free raise

Posted on: December 6th, 2013 by Real Estate Accountants No Comments

How can your employer give you a raise, without spending any money? Ask your employer to fill out a T2200 form – Declarations of Conditions of Employment. With a T2200, you have the ability to deduct employment expenses such as vehicles, assistants, supplies, etc. This means paying less in personal taxes. You’ll need this before […]

Tips for year-end tax planning

Posted on: November 17th, 2013 by Real Estate Accountants No Comments
Jacob's Ladder

It’s hard to believe that 2013 is drawing to a close when it seems like we were just celebrating the summer holidays.  Here are some quick tips to think about and discuss with us before the end of the calendar year, or before the year-end for your company: Ask us about triggering capital gains or […]

Home office expenses: What can I deduct?

Posted on: October 10th, 2013 by Real Estate Accountants No Comments
Home office

“I have heard from my real estate investor friends that I can deduct part of my home as home office expenses. What’s the real story behind this?” This is a common question from our clients. Generally speaking home office expenses are deductible if you can demonstrate that they directly relate to the rental operation. The […]