When it comes to closing your business, you want to be sure that you have met all legal requirements and that all information returns have been filed, to avoid any future surprises. Some things to consider include:
As of October 12, 2020, the CRA has opened applications for the Canada Recovery Benefit (CRB). The CRB provides $500 per week for up to 26 weeks to workers who have stopped working or had their employment/self-employment income reduced by at least 50% due to COVID-19 and who are not eligible for Employment Insurance (EI).
The application process for the CRB is similar to the previous CERB program; however, there are some key changes to the application process. The new elements of the application process for CRB are as follows:
To ensure the application goes smoothly, CRA recommends that all personal information is up-to-date and an account for direct deposit is registered. Further, the CRA encourages that your 2019 tax return be filed if not already done so as this will reduce the likelihood that additional verification steps need to be performed.
Applications can be made through CRA’s My Account portal or through the phone at 1-800-959-2019 or 1-800-959-2041.
For more information please contact our office at 780-532-4641 or visit https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html
Did you know that Canadians must file a U.S. tax return if they own something of value over $60,000 USD upon their death? Whether you are a snowbird who owns a home, an investor with U.S. Stock, or have a boat permanently situated in the U.S. that you plan to bequeath to a loved one, your estate will have to file a U.S. Tax return. regardless of whether an estate tax liability exists.
While filing the tax return on property over $60,000 USD is necessary, it does not necessarily mean a tax liability. Here is a quick test to assess whether you have tax exposure:
| Values | |
|---|---|
| Fair Market Value of U.S. Property in Excess of: | $60,000 USD |
| Value of Worldwide Estate in Excess of: | $11.4 Million USD |
If your estate meets both conditions, it will be taxed on a graduated tax rate system, based on the value of your taxable estate.
Problems can arise for the heirs of your estate if the U.S. estate tax return is not filed. Heirs will have no basis in the U.S. situs property, making it especially difficult for them to sell their newly inherited property.
Penalties may also be imposed by the IRS for both late filing and late payment. These penalties are a red flag for many transfer agents, and they may not agree to transfer the property without proof of clearance from IRS.
Estate planning should be reviewed on an ongoing basis in order to keep up to date with changing laws. Your estate plan needs to flexible enough to allow for necessary changes to be made in relation to these shifting circumstances.
Eligible small and medium-sized businesses, co-ops, and non-profits can apply for a one-time payment of $5,000 under the Small and Medium Enterprise Relaunch Grant that the provincial government has put forth.
The grant is available to businesses, non-profit organizations, and co-operatives that meet the following criteria:
In order to apply for the grant, applicants must register for the My Alberta Digital ID. Once the account has been created, applicants can use their My Alberta Digital ID to apply through the online application portal.
For more information please the Government of Alberta webpage for the Small and Medium Enterprise Relaunch Grant or call our office for assistance.
The CRA announced that it is extending the payment due date for current year individual, corporate, and trust income tax returns from September 1, 2020, to September 30, 2020. This also includes instalment payments.
Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the late-filing penalty as long as the return is filed by September 30, 2020.
On July 17th the Government of Canada announced an extension of the Canada Emergency Wage Subsidy (CEWS). The proposed changes would extend the CEWS until December 19, 2020, including redesigned program details until November 21, 2020.
For an updated version of this relaunch grant, visit our newest blog post regarding this.
Eligible organizations can apply for a one-time payment of 15% of their pre-COVID-19 revenue, up to a maximum of $5,000. It is available to businesses, cooperatives, and non-profit organizations that meet the eligibility criteria.
To be eligible, companies must meet the following criteria:
Announced by the Government of Canada on March 27. Original article posted April 9, 2020. Updated with new information as it arises.
This past week has given us some clarification on the commercial rent relief for small businesses. The Government of Canada has put in place forgivable loans to eligible commercial property owners, enabling them to reduce the rent owed by their small business tenants by at least 75% for April, May and June.
Phone: 780-532-4641
Fax: 780-532-4947
Toll Free: 1-800-422-6093
Email: office@fulcrumgroup.ca
#102, 9919 – 99 Avenue
Grande Prairie, Alberta
T8V 0R6
