www.liptonllp.com
20
MAR
2019

Federal Budget Commentary 2019

Finance Minister Bill Morneau’s March 19, 2019 Federal Budget message was that, thanks to the Federal Government’s investments over the past three years, things are going well, especially for the middle class: more Canadians have full-time jobs, unemployment is at historic lows, wages are growing, consumers and businesses are confident, economic growth is good, and our debt is manageable.

Nonetheless, says Morneau, more needs to be done to ensure Canadians’ prosperity over the coming years. For the most part, that means adding tax credits and other incentives and enhancing existing ones, giving the Canada Revenue Agency more resources to recover unpaid taxes and to help businesses comply, measures to reduce tax evasion and aggressive tax avoidance, improving retirement and disability savings plans, and introducing the framework for a national prescription drug plan.

It does not mean making changes to personal and business tax rates, making substantive effort to improve the efficiency of the Income Tax Act or making significant cuts intended to reduce the deficit.
In brief, the 2019 Budget includes $22.8 billion in new spending over the next five years. The government expects revenues to steadily increase by nearly $60 billion in 2023 and projects program spending to increase by $40 billion that year. Debt payments are projected to increase by $7 billion.

Based on these growth and spending assumptions, the government expects the federal deficit to increase to nearly $20 billion in 2019-2020 and 2020-21 and then decline to $9.8 billion at the end of the next five years.

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15
FEB
2019

Are you ready for Tax Time?

The April 30, 2019 deadline to file your 2018 personal income tax return is quickly approaching. As a result of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, please gather your required tax information(as outlined in the attached 2018 Personal Tax Checklist) and submit them to us no later than Monday, April 1st, 2019.

Provided below is a link to everything you will need to allow us to prepare your 2018 T1 Income Tax Return.

Click Here to view our T1 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2018 T1 Income Tax Return, please feel free to contact your Lipton advisor.

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15
FEB
2019

Filing Your 2018 US Tax Returns

The 2018 U.S. tax return for an individual; Form 1040 is due on April 15th, 2019. However, if a U.S. tax person is out of the U.S. on April 15th, the filing due date is automatically extended to June 17th.

The extension allowed is for the filing of the tax return but does not extend the payment due date.

Due to changes in tax laws and the ever-increasing complexity in preparing personal tax returns, we encourage you to gather your required tax information as soon as possible.

Provided below is a link to everything you will need to allow us to prepare your 2018 1040 US Income Tax Return.

Click to view our 1040 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2018 1040 Income Tax Return, please feel free to contact your Lipton advisor.

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21
JAN
2019

2018 T4 Information

In order to facilitate the accurate preparation of your 2018 T4 information returns, we are pleased to enclose a summary of significant taxable benefits that may apply to your employees.

Click Here to view the Summary 

It should be noted that, as mentioned last year, if you are submitting more than 50 information returns (slips) you are required to file electronically.   If you fail to comply with this requirement, you may be subject to an incorrect filing format penalty.  We can assist you in ensuring your compliance with these new rules.

If your T4 information return is being prepared by Lipton LLP, we will be electronically filing all 2018 T4 information returns whenever possible.

If you have any questions concerning the preparation of 2018 T4 information returns and slips, please contact our office.

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14
JAN
2019

Tax Planning Update – RRSP/TFSA

Tax Planning Update – RRSP/TFSA
 
In order to assist you with your 2018 and 2019 tax planning, we are pleased to provide you with the following information in connection with Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA) as follows:
 
RRSP
  • The maximum contribution limit for 2018 is $26,230.
  • The deadline for 2018 contributions is March 1, 2019.
  • Your contribution limit for 2018 is noted on your 2017 Notice of Assessment.
  • The maximum contribution limit for 2019 is $26,500.

TFSA

  • The contribution limit for 2019 is $6,000.
  • The cumulative contribution limit from 2009 to 2019 is $63,500.

The rules regarding RRSP and TFSA contributions can be complex.  Please contact your Lipton LLP advisor if you would like to discuss your particular situation further.
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25
MAY
2018

U.S. Closer Connection – Form 8840

Tax Planning Update – U.S. Closer Connection, Form 8840
 
U.S. tax rules contain a mathematical formula to determine tax residency.  This formula involves counting the number of days that you are physically present in the U.S. over a three-year period.  This residency formula is called the Substantial Presence Test (SPT).  Based on the SPT formula, if you exceed 182 days, you are deemed to be a resident of the U.S. for income tax purposes.  With respect to 2017, the SPT formula takes all of the days in the current year (2017), 1/3 of the days in the previous year (2016), and 1/6 of the days in the second previous year (2015).  You total the results from this formula, and if you were in the U.S. for at least 31 days in 2017, and at least 183 days based on the three-year formula, then you are deemed to be a U.S. resident in 2017 for U.S. income tax purposes.

The Closer Connection Exception:

If you meet the SPT but you were in the U.S. for less than 183 days in 2017, you may file a form with the Internal Revenue Service (IRS) to report that you have a closer connection to Canada and are thus exempt from the U.S. residency designation.

Due date:

This form must be submitted to the IRS by June 15 of the year following the tax year in question (June 15, 2018 for 2017).

Form completion:

We can help you determine if you need to complete this form for 2017 if you provide us with the number of days that you were present in the U.S. in 2017, 2016 and 2015.

Please contact your Lipton adviser if you have any questions in connection with this or any other matter.
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29
MAR
2018

2018 Ontario Budget Commentary

On March 28, 2018, Ontario’s Finance Minister Charles Sousa delivered the 2018 budget. This budget anticipates a surplus of $500 million in 2017-18 and deficits of $6.7 billion for 2018-19 and $6.6 billion for 2019-20.

The budget also includes changes to Ontario’s personal income tax rates and brackets although these proposed changes have no impact on the top marginal income tax rates. No changes to corporate income tax rates were announced.  The budget also provides increases to the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit as well as changes to the Employer Health Tax exemption.

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28
FEB
2018

2018 Federal Budget Commentary

The Federal Government’s 2018 Budget promotes Canada’s strong economic growth over the past two years, including real GDP growth of 3.2 per cent since the second quarter of 2016, an unemployment rate of 5.9 per cent, and significant improvements in average weekly earnings, consumer confidence, and household consumption. The Finance Minister expects similar growth in the near-term. In addition, federal revenues increased by more than 11 per cent in 2017, largely from personal and corporate income taxes.

With this positive economic activity and outlook, the government has presented an “Equality and Growth,” budget that includes tens of billions of dollars in new or increased spending over the next six years, with the goal of further growing government revenues by increasing economic participation among women, visible minority Canadians and persons with disabilities, as well as substantial long-term investments in science and technology.

The government suggests that increasing equality for women and enhancing women’s participation in the workplace (especially in technology and trades) could add $150 billion to the Canadian economy over the next decade.

Please Click Here to read our full Federal Budget Commentary

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26
FEB
2018

Filing Your 2017 U.S. Tax Returns

The 2017 U.S. tax return for an individual; Form 1040 is due on April 17th, 2018. However, if a U.S. tax person is out of the U.S. on April 18th, the filing due date is automatically extended to June 15th.

The extension allowed is for the filing of the tax return but does not extend the payment due date. Because of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, we encourage you to gather your required tax information as soon as possible.

Provided below is a link to everything you will need to allow us to prepare your 2017 1040 US Income Tax Return.

Click Here to view our 1040 Information Guide

Should you have any questions or concerns about anything pertaining to the preparation of your 2017 1040 Income Tax Return, please feel free to contact your Lipton advisor.

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22
FEB
2018

Are you ready for T1 Tax Season?

The April 30, 2018 deadline to file your 2017 personal income tax return is quickly approaching. As a result of changes in tax laws and the ever-increasing complexity in preparing personal tax returns, please gather your required tax information (as outlined in the attached 2017 Personal Tax Checklist) and submit them to us no later than Monday, April 2nd, 2018.

Provided below is a link to everything you will need to allow us to prepare your 2017 T1 Income Tax Return.

Should you have any questions or concerns about anything pertaining to the preparation of your 2017 T1 Income Tax Return, please feel free to contact your Lipton advisor.
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