Red Ink on the Prairies
A day after Quebec’s Finance Minister Eric Girard brought down a Budget featuring a $6.3 Billion deficit, Saskatchewan’s Finance Minister Jim Reiter tabled his government’s budget on March 19. Next up was Finance Minister Adrian Salas, who tabled the Manitoba Budget on March 24. The common thread: there’s lots of red ink on the Prairies. But that’s where the budget documents differ between Manitoba and Saskatchewan. Here’s the latest tax news and why it matters to the advice you give your clients.Feeling Lucky Today? Enter the KBR Sweepstakes
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Basic Rules on Interest Deductibility
With recent interest rate hikes in the news, taxpayers will have more questions about the deductibility of interest costs. Exactly when is interest fully deductible as a carrying cost or a business deduction? When does it form part of the capital cost of the property? Finally, when do new legislative proposals recently released by Finance Canada begin to restrict interest cost deductibility and for whom? Here’s what you need to know to have more confident conversations between advisors and taxpayers:
Over-Contributions and Excess Contributions to an RRSP
RRSP season ended on March 1, so any contributions to be deducted on the taxpayer’s 2021 return must have already been made. These contributions cannot exceed the maximum RRSP contribution for 2021 which appeared on the 2020 Notice of Assessment. So long as the contributions made are less than the maximum allowed, the taxpayer can deduct as much or as little of the contributions made on their 2021 return. Complications arise, though, when the amount contributed exceeds the maximum.
New Canada Digital Adoption Program for Small Businesses
On March 3, 2022, Prime Minister Justin Trudeau, announced that the Canada Digital Adoption Program (CDAP) is now fully active and ready for qualifying businesses to apply for funding. The purpose of the CDAP is to assist small and medium-sized enterprises (SMEs) “grow their online presence and upgrade or adopt digital technologies.” Here are the details:
Resources You Need for a Busy Tax Season
Tax season is now in full swing, according to the most recent 2022 season filing statistics from the CRA. As of March 7 almost 2.5 million returns had been filed, with over 95% through electronic filing methods E=File and Netfile. As we approach the height of the season, does you team have the necessary resources to deal with the demands?
