SAZ Consulting

https://www.msn.com/en-ca/money/topstories/new-cra-rules-around-working-from-home-make-it-harder-to-claim-expenses/ar-BB1hZdHx?cvid=74a4741f40414fb8e2e6ffe1a96e4b2e&ocid=winp2fptaskbarhover&ei=15&sc=shoreline

New CRA rules around working from home make it harder to claim expenses If you’re one of the millions of Canadians who worked from home during 2023, either full time or on a hybrid-work arrangement, you’ll need to take some extra time this tax filing season if you want to claim a deduction for your home-office expenses. That’s because the “simplified method” o...

https://financialpost.com/personal-finance/taxes/cra-interest-rate-hits-double-digits-how-affects-you

The CRA's prescribed interest rate hits double digits: 3 ways it could affect your wallet The prescribed interest rate for overdue taxes has hit double digits — 10% for the first quarter. Read on for how that could affect you.

https://www.investmentexecutive.com/newspaper_/special-report-on-taxes/cra-raises-late-payment-penalties/?utm_source=newsletter&utm_medium=nl&utm_content=investmentexecutive&utm_campaign=INT-EN-saturday&hash=794a9b3359a516d00df4d76fc2306aa7

CRA raises late-payment penalties | Investment Executive Thanks to higher interest rates, charges on overdue payments will soon rise to 9%. Tax specialists offer strategies to help clients minimize costs

What Expenses Can Freelancers And Independent Contractors Deduct in Canada?

Many times our new clients ask us “What expenses can I deduct?”
As a self-employed business owner, freelancer or an independent contractor you are eligible to deduct expenses against your income. Your income tax is based on your net income. Business expenses incurred throughout the year are applied against the income and reduce your net income and thereby reducing your income taxes.
“What expenses can I deduct” This is a question we hear almost daily and therefore we would like to provide details on some of the common expenses that business owners, independent contractors and freelancers are eligible to claim.
- Advertising and promotion – examples: ads, business cards, flyers
- Business start-up cost
- Capital cost allowance
- Computer related expenses
- Dues, Subscription, Licenses, Memberships – examples: professional dues or licenses
- Home Office Expenses – examples: Utilities, Mortgage interest, Home Insurance, Cleaning Materials, Property taxes, Repairs & maintenance (Only the business-use-percentage of these expenes is deductible)
- Interest and bank charges
- Legal, Accounting & Professional Fees
- Delivery, Freight, Postage
- Meals and Entertainment – 50% of these expenses are deductible
- Vehicle Expenses – examples: Fuel, Repairs & maintenance, Parking, Insurance, Depreciation.
- Office supplies
- Rent
- Salary & Wages
- Telephone & Internet
- Travel
- Tools

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

Business expenses - Canada.ca A list of deductible business expenses as well as their explanation for use on Form T2125.

Congratulations! to my sweet and lovely client Waterfield on the release of your book. You are truly an inspiration. So proud of you.

Beware of the tax schemes that promise to reduce your taxes.
https://www.canada.ca/en/revenue-agency/campaigns/tax-schemes.html

Beware of tax schemes that promise to reduce your taxes - Canada.ca Information on tax schemes and how to protect yourself against the serious consequences of participating in one.

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Merry Christmas and a Happy New Year!! SAZ Accounting

Home office expenses for workers during COVID-19 (December 4, 2020)
The federal government in its Fall Economic Statement 2020 advised that the Canada Revenue Agency (CRA) will allow people working from home in 2020 due to COVID-19 to claim up to $400.00 for modest expenses without requiring detailed expense documentation or a completed T2200 signed by their employer.

The deduction available is based on the amount of time spent working from home.

For clarity, it is not necessary for employers to complete the T2200 form for the workers described above. The usual process for completing the T2200 form will remain available to those employees who were normally required to work away from the employer’s place of business and had to pay expenses to earn employment income.

Further details will be communicated by the CRA in the coming weeks.

CRA CERS program is now open to apply for Period 1. CRA has updated their website with the eligibility criteria, calculation method and how to apply.
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-who-apply.html

Who can apply - Canada.ca If you don’t have a business number but you qualify under condition b or c, you will need to set one up before you are able to apply for CERS.

Wishing you all a very Happy Navratri!

New 2020 T4 Reporting Requirements