Individual Tax Planning
We do a lot more than prepare tax returns……
Personal Income Taxes
According to Canadian law, everybody over the age of 18 has to file an annual personal income tax return. However, this is not the time when your tax planning and strategizing should occur. We believe in being proactive with our clients to integrate tax solutions that will maximize your return and hopefully keep as much of your hard earned income as possible. In order to do this, we must first clearly understand what your short and long term financial goals are. Our tax specialists will work with you to determine what strategy will work best for your short term and your long term financial goals. We will provide you with a personalized strategic and integrated plan.
The Personal Tax Return Checklist
Our Personal Tax Return checklist can help you ensure you are bringing us all the information we need to prepare your personal income tax return. It can be downloaded here.
Are you self employed? Or do you have rental, business or professional income and expenses to claim?
We have created some blank schedules that help you keep track so it is easier to prepare your personal income tax return. You can download blank schedules for professional income and rental here.
Do you have employment expenses?
Use this handy schedule to help keep track of these expenses to file your tax return.
Do you have vehicle expenses to claim?
Some clients can claim vehicle expenses on their personal tax returns. If you do, you should keep a record of your business kilometers and your vehicle expenses. Canada Revenue Agency regularly requests to review documentation and support for these expense claims. You can download a blank form here.
Tax Compliance
Tax return preparation is just the beginning of what we do. Even though we prepare thousands of tax returns each year, we know that each one of them requires careful planning and thought. We consider the situation of each individual to ensure maximum tax efficiency. When RLB prepares your tax return you can be sure it is done correctly and that you are keeping more of what you earned. We are the experts on both Canadian and US taxation laws.
Audit Support
If you are ever the subject of an audit, one of our tax specialists can work with you and the auditor to help reduce or even eliminate any additional amounts owing. We will even represent you at the audit meeting. To prepare for the meeting we will assist with gathering the requested information and documents to ensuring you have a strong case when meeting with your auditor. RLB has the tax experts you want on your side.
Personal Income Tax Planning
This area of expertise takes a holistic approach because both corporate and individual taxes can be integrated. Canadian personal tax rates are graduated into 4 income tax brackets; which unfortunately means the more you earn, the more taxes you have to pay. There are ways to minimize this amount and keep as much of your hard earned income as legally possible.
Below are some examples of some different tax strategies that you may qualify for (depending on your situation):
- We may consider transferring income producing assets from one spouse in an effective manner to another to achieve an optimal balance in your annual tax liability.
- We may be able to claim medical and charitable donations on one spouse’s return instead of splitting them between the two.
- We may split private pensions up to 50% between spouses to minimize tax.
- We may transfer tuition and education tax credits from your adult child or spouse to you to which minimizes tax.
- We may consider joint ownership of rental properties.
- We may be able to transfer assets on a tax-deferred basis that has appreciated in value to your corporation to absorb tax losses.
- For small business owners we may be able to issue discretionary shares to other adult family members to split dividend distributions that would otherwise be taxable to the one family member who is in the top personal tax bracket.
- It might be possible to balance your remuneration from your owner-managed corporation to meet your RRSP and other retirement objectives.
Whatever your situation have confidence in your RLB tax specialists.
Strategic Tax Review
When is the last time you had a strategic tax review? We realize it may not sound like something fun to do but we promise it is less painful than going to the dentist and may even result in some potential tax savings. We will begin by examining your short term and long term financial goals as well as your current financial situation. There are a variety of possible strategies that may result from a forward-looking, long term approach which could result in making those long term goals reachable.
