There are very few certainties now, but we can be certain of the typical things: death and taxes. What about our life insurance premiums? With more and more Canadians living longer, wouldn’t this mean mortality costs should decrease? Not necessarily, especially as we dig deeper into government debt. There may be more at play as … Read more
Due to the upcoming Canada Dental Care Plan (CDCP), the CRA has updated the tax filing process to support the transparency of dental care in Canada. Beginning with 2023 tax season, employers must provide information on dental care benefits on T4 and T4A slips, TNMSC recently reported. These reports on whether employees and their families … Read more
Saving taxes involve planning and taking action before the tax savings window closes. Trying to save taxes when completing your personal or corporate tax returns is often too late, like closing the barn door after the horses have left. There are tax planning and saving ideas dentists should consider implementing before 2024. 1. Alternative Minimum … Read more
Newcom Media Inc · Episode 3 – Tax Planning Tips Subscribe: Read the audio transcript below: Dr. Luisa Schuldt (LS): Welcome to Brush Up, brought to you by Oral Health. I am your host for today, Dr. Luisa Schuldt. I am a periodontist and prosthodontist out of Font Hill, Ontario. Our guests today are David … Read more
As a dentist, you’re probably aware of the impact the Income Tax Act has on your life, considering tax is likely your biggest expense. With the average Canadian dentist paying personal tax rates of 43%–50%, taxes drag on dentists’ ability to grow their wealth over time. Understanding how to reduce this drag is crucial in … Read more
Retirement is when you want to spend more time enjoying life than worrying about taxes. That’s why it is important to have the right tax strategy during your retirement years. By understanding how you can lower your tax burden in retirement, you can keep more of what you have earned throughout a lifetime of saving … Read more
Dental practice values are back up. Everyone’s hounding you to sell. Maybe you’re tired of the daily grind of running a dental practice – especially during COVID-19. You find yourself drifting off. You’re on a pristine beach, at your cottage or on a golf course. You see yourself spending more time with family and friends, … Read more
A recent tax court victory for the Davis Dentistry Professional Corporation case has paved the way for dentists and orthodontists to qualify for HST refunds. This doesn’t mean everyone will be getting cheques from CRA, but those offices which have a significant orthodontic component and/or an in-house lab/CEREC/E4D may be able to get some money … Read more
Covid has resulted in many costly and some argue necessary government programs. Pundits suggest the top 1%, including dentists, will end up paying for these programs. How? Speculation is rife that tax breaks and/or tax rates will rise for this 1%. The next federal budget, which will be unveiled on April 19, 2021, might increase … Read more
COVID has fundamentally changed how we live and how businesses operate. It has taught us the importance of being resilient and to look for opportunities even in dire situations. As a result of COVID, many dentists have experienced: Working from home and providing teledentistry Renovating their home to facilitate a home office Buying personal protection … Read more
An important consideration during the sale of a practice is the amount of taxes arising from realizing a capital gain – the underlying asset primarily being the patient list, i.e., goodwill. While the seller can avail of the lifetime capital gain exemptions as a reduction to the capital gain tax, there are opportunities for a … Read more
In the past, our clients have frequently enquired about claiming tax deductions for car expenses and home office expenses. Let’s review how the COVID-19 pandemic may affect these potential tax deductions for you. If you are not yet incorporated (i.e. operating as a sole proprietor), you are allowed to claim a portion of your car … Read more
UTILIZE TAX LOSSES Tax losses generally fall into two categories: non-capital losses and capital losses. Non-capital losses arise from normal business operations (i.e. where deductible dental practice expenses exceed dental revenues). Capital losses arise when you sell assets such as investments for less than what they cost you (i.e. you purchased a stock for $100 … Read more
1. Sharing is Caring/Saving Use family members in the tax savings game. Many dentists have a dentistry professional corporation (DPC). DPC’s if structured appropriately facilitate “sharing of income”. Family members may be eligible to receive dividends provided they work 20 or more hours per week on behalf of the practice throughout the year. A family … Read more
It’s that time of year to get in some late minute tax planning before it’s too late. Here are our ten tips for a tax-friendly holiday: 1. Pay yourself If your professional corporation’s (PC) or other income is expected to be over $500,000 this year, you may wish to issue a bonus to yourself or … Read more
Dental students and associates are a busy bunch. With long hours and a hectic schedule, figuring out your tax filings can slip down your priority list. This group typically asks about five topics: deductions against your income, moving expenses, impact of extra income, reducing taxes on salary and the benefits on incorporation. Let’s look at … Read more
The president of a Cambridge dental supply business took over $400,000 from the company to pay for maid services, landscaping and cottage renovations, a court heard Monday. Robert Bolton charged personal expenses to company expense accounts, took cash from the corporate bank account and charged credit card purchases to the company, Kitchener’s Ontario Court heard … Read more
Beep beep beep. You reach over and push the snooze button. Beep beep beep. This time you reach over and slap it. When you wake up half an hour later, you realize that you’re late for work! Panic sets in. Running around the bathroom, you’re putting on one pant leg and brushing your teeth at … Read more
April is here – and so is tax time. It’s when we’re all reminded of our civic duty to contribute to society through taxes, which often leaves our wallets feeling a little lighter as we pass the April 30 tax filing deadline. Unfortunately for many Canadian dentists, this tax season could be the worst one … Read more