US Personal Tax Preparation Tips

Posted in Tax Accountant

When it comes to filing a federal income tax return, you have to go through numerous problems/issues. This can be owed to the complicated procedures that are hard to understand, unless you’ve filed a return before. You are guaranteed to run into some details that you’re unsure of, and this can make it difficult to prepare your forms for filing. Are you facing trouble with Tax Preparation? If so, follow these helpful and useful tips:

Gather The Relevant Paperwork/Documents
US personal tax preparation in Mississauga, Brampton and Oakville can prove extremely difficult, especially if your paperwork and document aren’t organized. You must gather and compile all appropriate documents and lay them out in front of you. This can include your income statements, tax forms, as well as receipts for contributions and tax deductions.

Decide Which Filing Method Is Best For You
When it comes to filing a personal tax return, you have three options: hiring a professional, paper filing, or using tax preparation software. Even in today’s age of digital technology, most people will feel more secure with US personal tax preparation in Mississauga, Brampton and Oakville with the good ol’ paper and pen. With paper filing, however, you are responsible and in charge for every detail, start to finish. This may require assistance from a family member or friend who has filed a paper a tax return before.

Tax preparation software is one of the best options available, as they immediately answer all types of questions/queries you might have. Since the software is designed for filing taxes, it can automate the process monthly, making it easier for you to take advantage of tax credits and tax deductions. There are many websites available that can help you print or e-file your return quickly.

If you aren’t familiar with the filing process at all, it is usually best to hire a professional for US personal tax preparation in Mississauga, Brampton and Oakville. This option cuts all the guesswork and ensures all processes are completed securely and efficiently. You can be confident that your return is accurate and you are saving as much money as possible.

Take Your Time for the Tax Filing Process
If you are using a tax preparation software application or filing a paper return, you are responsible from moving one line to another in a calculated and precise manner. You may make several mistakes in your initial tries, but once you get a hang of the process, you can get it done easily. Make sure to keep all documents in check and ensure all details are relevant and appropriate to the tax filing requirements of your state.

Decide On Whether To Mail Or E-File
If you are filing a paper tax return, you need to mail it to the relevant tax authority in your state. On the other hand, if you are filing via a professional accountant or using a tax preparation software application, using e-file is a better, faster, and more convenient option. Since everything is submitted electronically, your application is processed instantly which means a faster tax refund.

Therefore, now that you are familiar with the tips mentioned above, US personal tax preparation in Mississauga, Brampton and Oakville hopefully won’t be a pro


Why Is It Important for Businesses in Ontario to Hire an Accountant

Posted in Tax Accountant

It is important for every business to hire an Accountant in Mississauga, Brampton and Oakville to streamline financial operations/tasks. Although accounting doesn’t contribute to the profits a particular company makes, it goes give a way to gauge performance, review revenue, etc. With good accounting habits, you can keep a strict eye on your business’ finances. For more information, let’s look at why it is important for businesses in Ontario to hire an accountant:

Keeps Costs Down
The primary task of an Accountant in Mississauga, Brampton and Oakville is to keep themselves clued on the financial well-being of a particular business in Ontario. They keep track of where all your money is spend, necessarily or unnecessarily. While business owners are looking for opportunities to expand their brand and search for their next big client, an accountant keeps track of the expenses part of your business. For instance, while your attentions are focused elsewhere, accountants will make sure your payments, tax files, and returns are being made.

Saves Lots of Time
Getting a qualified accountant can prove to save lots of time for business owners. These professionals can effectively take on the role on tax filing. They organize your personal taxes, alongside business taxes. They also complete the returns and ensure the tax refunds for you. You get a significant cut in tax paying. In short, accountants can help in organizing your business operations particularly relating to finances in a way that you need not pay a heed to it.

Help You Perform Better In Areas of Specialty
When you hire an Accountant in Mississauga, Brampton and Oakville, you can feel assured that all finance related tasks are done properly. If you go do it by yourself, there is a possible chance of making errors. An expert accountant does the work for you, allowing you to focus more time on core competencies. This helps your business perform better in areas of specialty.

Maximize Opportunity and Strength
A qualified and professional account offers business owners the best business advice and financial service. These experts will help you in identifying the areas of your strength and provide detailed information regarding finances for new strategies. They also show the threat and weakness to your business and chalk out effective business strategies and proper business planning to allow for better funds allocation.

Offer Tax Counseling
Last, but not the least, when you hire an Accountant in Mississauga, Brampton and Oakville, you can gain expert Tax counseling. These professionals are well aware of the tax laws, new rules, and updated regulations relating to paying taxes, performing accounting tasks, and bookkeeping. They can help you understand tax laws and grow your business with the latest tax related concerns. They can even file your taxes to ensure that you comply with the latest laws to avoid problems in the future.

Therefore, if you want to receive the above mentioned benefits, perhaps it’s time you considered hiring an account for your business


Tax Preparation – Selecting the Right Tax Preparer and Ensuring the Process Goes Smoothly

Posted in Tax Accountant

Tax time can be a stressful process in Ontario, especially if you aren’t aware of the process. Businesses and consumers alike need to understand that they are ultimately responsible for everything on a tax return, regardless of who prepared it. While most tax professionals are honest, qualified and reliable, it is imperative that you find a trustworthy and dependable service to avoid during and after you hand over the prepared documents for your preparation of income tax returns. After all, nobody wants to deal with income tax return problems just because the preparer made a mistake. So, without further ado, look at these tips to find a good service for Tax Preparation in Mississauga, Brampton and Oakville and ensure the process goes smoothly:

Check Qualifications of the Preparer – When it comes to tax preparation, you need to ensure you are hiring an experienced and knowledgeable preparer. So, don’t hesitate on asking different preparers for their training, qualifications, education, and experience of the current tax lax in Ontario. For any type of return whether it is simple return or more complicated tax return, your interests are best served if it is done by a professional accountant who has been preparing the returns for 10 years or more. If you go to a book keeper or tax preparer who is not a qualified accountant, you run the risk of not getting the best for your taxes paid.

Check Preparer’s History – Don’t hesitate on conducting a background check to see if the preparer has a questionable or clear history. Check for how many years the tax preparing is in the business and testimonials from the other clients. For a professional Accountant you should ask for the designation of the accountants.

Ask about Service Fees – For successful Tax Preparation in Mississauga, Brampton and Oakville avoid preparers who say they can get you larger refunds than others can. Also, avoid people who say that you should deposit the refunds into a preparer’s bank account first. All funds should be sent to you directly.

Ask About Electronically Filing Your Return – Times have changed and so has the process of filing tax returns. Now, it is also required that your preparer offers CRA e-file. This ensures that your tax return has been filed electronically, reducing time and hassle from your end.

Make Sure the Preparer is Available – Ensure that whichever tax preparer you choose is available after the return has been filed. This may prove essential and helpful in circumstances where questions arise regarding your tax return.

Provide Receipts and Records – The best preparers will ask to see all your receipts and records to determine your tax credits, deductions, total income, and other essentials. However, make sure preparer you choose doesn’t e-file your return using your last pay stub, as it is against CRA e-file rules. It should be done with your T4.

Never Sign a Blank Return – Tax Preparation in Mississauga, Brampton and Oakville can prove to be quite tricky, as you have to be careful about whom you can trust. Regardless of whom you choose, ensure that you NEVER sign a blank return. Immediately fire the person who asks you to sign a blank tax form, as it could be a sign of potential fraud.

Ensure the copy of the tax return – Preparers must give you a copy of the return to complete the process.
So, if you want to select a reliable service for Tax Preparation and ensure the process goes smoothly, make sure to follow the abovementioned tips.


Important Questions to Ask When Selecting a Tax Accountant

Posted in Tax Accountant

Tax accountants are those professionals who are responsible for filing tax returns for both businesses and individuals in Ontario. The job of Tax Accountants in Mississauga, Brampton and Oakville is to plan and legally help the client pay the minimum in taxes. Since tax laws and codes tend to be complicated, these experts do all the hassle and work for you to get the best refunds. However, because you will be providing a lot of personal and financial information, you need to be careful about who you choose as your Tax Account. So, without further ado, take a look at these important questions to ask:

Do They Have Expertise In Areas Relevant To You?

You need to make sure that the Tax Accountant you choose understands your type of business. For instance, if you have a restaurant, then there are different rules to follow for tips and wages. Similarly, if you are working for a technology company that issues RSUs or stock options, you need to ensure that the accountant you choose has worked with plenty of other clients in the same situation. Construction businesses too have different criteria regarding how income is reported. Therefore, basically you need to have a Tax Account who has worked with a similar type of business to yours and knows the ins and outs.

How Many Years Of Individual Tax Experience Do They Have?

When interviewing several Tax Accountants in Mississauga, Brampton and Oakville, make it a habit to always ask about their experience, qualifications, and education. An appropriate tax accountant should boast a minimum of five years experience in doing business/individual tax returns. It is preferably better to hire one that has experience dealing with a large firm, as they will have better exposure to broader set of taxing issues, which you might face in the future.

What License(S) Do They Have?

Although it isn’t technically required, it would be preferable that your tax preparer has a Professional Accountant status with specialization in Tax Accounting (one of the three forms of accounting). If you are planning to hire a Tax Attorney, make sure they have a LLM in Tax (an advanced tax degree for attorneys). This ensures that all your tax-related tasks are done professionally and by a person who is certified and licensed.

How Do You Bill For Your Services?

Where some Tax Accountants in Mississauga, Brampton and Oakville may charge by the hour, others bill a flat rate for their services. Some businesses even hire a full-time accountant that manages the tax-related work as well. The choice is up to you and you have plenty of options available. Regardless of the billing approach, it is imperative that you get an estimate of the accountant’s likely fees.

How Do You Handle Working With Multiple Entities?

If you have more than one entity under your name, make sure to hire a Tax Accountant who has the capability of dealing with multiple entities simultaneously. Also, ask whether or not the accountant uses specialized software to streamline processes. Every accountant has to coordinate and track money from different entities sometimes. A professional software


Hiring a Specialized Accountant to Handle Corporate Tax Accounting

Posted in Tax Accountant

Taxes are an important part of every business. Without a proper understanding of the tax laws, you may not be able to appropriate the relevant funds to the government. And this may cause tremendous amount of problems for your business operations. Even if you hire a specialized accountant to handle your finances, it will still be your responsibility to ensure every tax is bad. One such tax that should be aware of is Corporation Tax. For more information, let’s look at what Corporation Tax is and how hiring a specialized Corporate Tax Accountant Mississauga, Brampton and Oakville can prove to be beneficial for your business.

The Basics of Corporate Tax
Corporate tax is the responsibility of certain organizations and limited companies that are unincorporated bodies. Private enterprises of all sizes must pay corporate tax, which includes profits from capital gains, income, and investment profits. It doesn’t matter where you sell your services or goods, if you are located in Canada – you are responsible for paying this crucial tax.

Handling Corporate Tax

Understanding corporate laws can be a tough task for managers and business owners. This is why most often than not, businesses choose to hire a Corporate Tax Accountant. These professionals and experts will inform the relevant agencies of your company’s liability for the tax. They ensure that you pay the right amount of tax, at the right time. They also file tax returns and fill out all the documents for you.

Corporate Tax Accountant Mississauga, Brampton and Oakville are aware of the deadlines for each process, along with crucial tips/strategies that can help you in paying lesser taxes. They also follow up with the relevant taxation agencies on your behalf. This makes it possible for business owners to use their focus elsewhere on other core operations of the corporation.
When you hire a Corporate Tax Accountant, you can even gain expert legal counseling. These professionals are well aware of the tax laws, new rules, and updated regulations relating to paying taxes, performing accounting tasks, and bookkeeping. They can help you understand tax laws and grow your business with the latest tax related concerns

Doing Your Part

Hiring a corporate tax accountant doesn’t mean that you avoid playing your part in ensuring that you meet deadlines and pay all your taxes. Always make sure to double-check the information the accountant sends over and never sign any blank tax sheet of any kind. Take your time and guarantee that all information is accurate, including your losses, allowances, reliefs, deductions, chargeable gains, capital allowances, and profits.

It is essential that you don’t hide or forget to tell your corporate tax accountant regarding any changes you make/made. By working together with your accountant, you can ensure your tax liability is properly handled. This also enables you to avoid hefty penalties, fines, and charges, as corporate tax is definitely a serious topic.

So, if you want to handle corporation tax, perhaps it’s time you considering hiring a specialist accountant too.


US Tax Obligations for Canadians Working In US

Posted in Tax Accountant

US Tax Obligations for Canadians Working In US

When you talk about tax obligation for Canadian working in the US, there remains a dichotomy in regards to the basis of taxation in the two countries. While taxation laws in Canada is fundamentally based on residency (which means Canadian residents are obligated to file and pay for their taxes in Canada on the basis of their worldwide income. The US taxation system is however, based fundamentally on citizenship.

US Citizens or Green Card Holders

According to tax laws for US green card holders and citizens who are residing abroad, they are obligated to file their US tax returns on a yearly basis irrespective of residency in light of their worldwide income. Therefore, a Canadian who holds a green card or an American citizenship is liable to file for both his US and Canada based tax returns (Canadian Income Tax Return T1 and a US Income Tax Return Form 1040).

The deadline for Form 1040 tax return is April 15. However, there is an automatic extension to June 15 for US citizens or green card holder living outside of the US. The dual tax filing obligation does not translate into more taxes being paid by Canadian individuals who file for their Form 1040. And that is primarily because the Canada-US Tax Treaty comes into effect, acting as a shield for a person from double taxation.


Canadians that don’t have a green card or a US citizenship may still be subject to US tax laws. This is solely determined by a ‘substantial presence test’, which presented by the US Internal Revenue Code. Under the test, US residency is calculated by the total number of days a Canadian green card holder or citizen has spent in the US. This number is derived looking at the individual’s history over the past 3 years and if the number of days spend equals 183 or goes over it, and if the individual has spent more than 30 days in the current year, then US residency will be established.
The substantial presence bears quite a lot of important for a majority of employees in the US, especially for ‘snowbirds’, who enjoy working in the summer in the US, escaping the harsh winters of Canada. If the substantial presence test is satisfied by a Canadian individual he or she will automatically be deemed as a resident of the country, this is done to include them in tax bracket – making it mandatory for them to pay their taxes.

US Gift and Estate Tax

US estate tax is in most case mandatory to be paid by Canadian individuals that are green card holders or have an American citizenship. To prevent US citizens from gifting their properties to their next of kin and not paying their real estate tax, they have to pay a gift tax.

All in all, these are some of the most important tax issues and obligations for Canadians seeking employment in the US. And it is important to always be professionally represented by a tax specialist when going over these tax obligations.


US Tax Obligations for Canadians Holding Real Property in US

Posted in Tax Accountant

US Tax Obligations for Canadians Holding Real Property in US

If you’re a Canadian national and own US properties from which you also earn monthly rent, it will be mandatory for you to pay your US withholding tax, which is 30% of the gross rent. However, you can alternately choose to pay tax on your rental income if you receive the rent on a net basis. But in this case you are obligated to pay a US tax return at the end of the rental year – declaring your net rental income. If you elect to pay tax on your net rental income with Internal Revenue Service and provide all information of it to your tenant, you will not have to pay the 30% withholding tax. But your decision will be considered as permanent, and the decision can only be revoked in light of special circumstances defined by the IRS.

A majority of people of who own US property for rental purposes automatically assume that as their expenses are always likely to exceed the total rent they receive, they don’t have to file for their taxes or withhold the tax at source. The IRS has made it mandatory that the real estate agent or a property manager who collects the rent for the non-resident should be primarily responsible to ensuring that the taxes are paid and report to the IRS in case any tax withheld from the rental source of income.

Should the non-resident consistently fail in filing for his tax return, his property manager will be responsible for the due that remain outstanding, which also includes interest payments and other penalty charges. Moreover, the non-resident owner of the property will also lose all this right to claim any sort of deduction, which includes a 30% of the gross rent.

Furthermore, different from the Canadian tax structure, the US has made depreciation deduction mandatory. So, if you fail to file your tax returns, you will be deemed to claim the depreciation and will also be liable to recapture. Failing to file your withholding or rental income tax can also diminish your ability to move your passive activity expenses and losses forward, which primarily because of the fact that the IRS will have no prior record of those losses. As a direct result of that, on a potential sale of your property, you may have a taxable income payable – which translates into a recapture with no off-setting expenses carried forward.

The Bottom Line
When recession hit the American economy back in 2007-8, the debt load ridiculously increased to historical levels in the country. And the government tasked out to ensure that they can implement measure to increase tax revenues. And in order to do that, the US government started to impose tax restriction from non-residents and foreigners, making it obligatory for them to disclose all their financial details. And given how close US- Canadian borders are, a majority of foreigners that are taxes are Canadians.
And this means that it is crucial for them to remain cognizant of the tax situation of the US and seek experts and specialized tax advice.


US Tax Obligations for US Citizens Living In Canada

Posted in Tax Accountant

US Tax Obligations for US Citizens Living In Canada

Income tax laws significantly differ when you talk about the US and Canada. And one of the most striking differences between the two is the fact that while taxes in the US are primarily based on citizenship, tax laws in Canada are based on residency.
In simpler terms, what this actually means is, if a person is living in Canada as a full-time permanent individual, this individual is liable to pay taxes on his worldwide income, which he earns in Canada. It really doesn’t matter whether the person as US citizenship or is from another country, if he’s permanently living in Canada, he is obligated to be pay taxes in Canada.
If a resident from Canada or a Canadian citizen at some point in time leaves his home country to live in a different nation, cutting all ties with Canada, he will not be liable to pay taxes in Canada and won’t be subject to Canadian taxation laws and regulations.
US nationals however, have a lot more obligations when it comes to declaring their worldwide income when paying taxes in their home country – this is irrespective of wherever they live in the world. However, if the citizen has departed from his country, severing all ties with the US and begins to live in Canada as a full-time resident, they are still obligation to file for their income tax on a yearly basis with the IRS (Internal Revenue Service).
The only way they can escape paying taxes living in Canada is if they formally renounce their nationality, give up their passport and become Canadian citizen, if the person is to live in Canada. But this is a rather drastic measure to avoid filing for taxes, which most people don’t go for.
So, a US national who lives in Canada is subject to filing for his taxes in the US. They will have to go through the same filing procedures as they were when they lived in the US. And this essentially means, filling out the 1040 Form every single year, declaring all their worldwide income. They also have to do annually a separate filing for reporting foreign assets outside US (yearly FBAR Compliance).
The bottom line is US nationals residing in Canada have to file for a total of two tax returns every year. A tax return filed for the Canadian Revenue Agency because they live in Canada, and the second for the IRS as the individual is a US citizen.
The tax treaty signed between the two countries has a plethora of components, which are available as foreign tax credits. This is primarily to ensure that US citizen living in Canada refrains from duplicating taxes to both Canada and the US.


Finding the Best Tax Consultant

Posted in Tax Accountant

Finding the Best Tax Consultant

When it comes to filing and preparing taxes, some people prefer to do it themselves – they feel more comfortable with it. However, if you want to ensure you get every deduction you possibly can, then you need to rely on an expert tax consultant you has the experience and the knowledge to diligently file and look areas where he can possibly deduct an amount.

Regardless of the income and financial situation you are facing, a proficient and reliable tax consultant can considerably help you when it comes to saving money and at the same time steer-clear of any complications with the Canada Revenue Agency.

What can a Tax Consultant Really Do for You?

A professional tax consultant can do wonders for you in both short and long-term. For example, a Tax Consultant Mississauga and Brampton and Oakville can help you with planning every small and big aspect tax returns, your retirement strategy. Plus, he can also provide you with strategies and expert recommendations on your taxable investments as well as your deferred investments.
He can also provide you with streamlined strategies to enhance your refunds by locating key tax deductible areas you would have certainly missed otherwise.

Hiring the Right Tax Consultant

Before making the decision to hiring a tax consultant it is important that you first realize why you require his services. For example, if you need a Tax Consultant Mississauga and Brampton and Oakville for basic level preparation and filing assistance, you should hire a tax attorney on a more certified level. You have to find experts when it comes to providing tax advice and diligent preparation.
However, if your tax situation demands critical knowledge and experience – then it is strongly recommended that you hire a Professional Tax Accountant. Tax Accountants have a broader range of skills sets, which generally include specializing in tax, extensive academic qualifications and other credentials and continuing education experience.

Find and Selecting a Tax Consultant Mississauga and Brampton and Oakville

The foremost method of locating an experienced and professional tax accountant is to ask your friends and family. They can provide you with efficient recommendations, however, you can also search for a tax consultant yourself, but that requires some due diligence.
If you set out to finding a tax consultant yourself, it is important to consider a few things. First of all, you have to be absolutely sure that the tax consultant you are hiring has the experience and the knowledge in the type of work you have to take care of. For example, small-business taxation or personal income tax, etc.

Furthermore, look for someone who has a decent amount worth of experience under his belt – especially when it comes to his particular niche. Plus, you have to also ensure that the tax consultant you are considering has credentials to deal with Canada Revenue Agency, which essentially means you can be rest assured if there is a problem with your taxes, your tax matters will be taken care of with Canada Revenue Agency.

Last but not least, it is also a wise decision to compare difference companies providing tax consultancy, and you select the one without a blemish on its record. Interview the selected candidates; ask for their accolades and experience.

In all, these are some of the important elements that go into selecting and hiring a Tax Consultant Mississauga and Brampton and Oakville.


Corporate Tax Accountant Mississauga, Brampton and Oakville

Posted in Tax Accountant

How to Hone-in On a Corporate Tax Accountant Mississauga, Brampton and Oakville

So, you’ve just been through the nasty ordeal of filing your taxes, huh? Wished you employed the services of a corporate tax accountant? If you’re current accountant end up increasing the endeavour of filing taxes for you then it is high time that you consider hiring an experienced and highly professional corporate tax accountant Mississauga, Brampton and Oakville.
However, before doing so it will be a good idea to consider the following pointers to ensure you make all the right choices when employing and incorporating the services of a professional tax accountant. So, here goes:
But we move any further, let’s just shine some light on why it is becoming pertinent to hire a qualified and efficient tax accountant, day by day.

A tax accountant can help save a lot of time and provide intelligent solutions to the complex of tax problems. Not to mention he can help clear the cloud of confusion and conundrums when it comes to accurately, adequately and efficiently managing your finances as well as taxes. However, it is important to understand that a qualified, academically accomplished and experience corporate tax accountant can also help provide numerous other benefits to your organization as well, which mainly include:

Become a Trusted Advisor/ Financial Consul – More than just a person who can help you efficiently and effectively file taxes and diligently prepare for the tax season way before anyone else does; a tax accountant can also incorporate the role of a trusted business advisor for your small business venture, helping your supervise your cash flow, offer financial strategies aimed at expanding your business and assess all short and long-term risks.

Becoming a Balanced Scale When it comes to Business and Personal Needs – Numerous small business ventures, primarily sole proprietorships and emerging businesses realize the fact that most of their business and personal needs are more or less closely mitted together. This is where are corporate tax accountant comes in, acting your advisor, helping you to make businesses centric decisions.
Finding a Corporate Tax Accountant Mississauga, Brampton and Oakville
When it comes to efficiently and effectively searching for a qualified tax accountant, one the best ways to ensure you make the right pick is through referrals. And the most viable way you can hire a tax accountant through referrals is networking. Go to your local events hosted by the Chamber of Commerce in you province, talk to your peers and ask them for qualified referrals.

Screening the Candidates
When you’ve successfully shortlisted all potential candidates, plan a free consultation session, which can help you identify the strengths and weaknesses of all your candidates. Among some of the most important things is asking them all the right questions, which include:

What is your background and experience working for small businesses?
This is where you assess the candidate’s abilities to meet a company’s dynamic and complex accounting requirements along with the necessary resources to manage them. A corporate tax accountant who knows this is more than qualified to file and prepare taxes for your small business venture.

Can you elaborate on your experience within the industry?
This is where you probe him to elaborate on the industry he has been a part of, a good accountant will always know everything about the industry – and a majority of tax accountants are also specialists in different niches, such as franchising, export, real estate, etc.

The Bottom Line
In all, you have to realize that in the end of everything it always going to be you who is responsible for filing and preparing taxes. Do not consider hiring tax accountants who promise things that are way too good to be true.

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