Trusted Saskatoon Accountants at HTH CPA's Tax Tip: Underused Housing Tax (UHT) Returns

16. Mar 2023 Admin Saskatoon accountants, Trusted Tips

Hounjet Tastad Harpham has decades of accounting experience working with clients across Saskatchewan. Their expert accounting advice is valued by clients ranging from individuals to businesses, small and large. Hounjet Tastad Harpham is a Trusted Saskatoon Accounting firm, and in their latest helpful Saskatoon accounting and tax tip, they explain the new Underused Housing Tax (UHT) Returns.

Underused Housing Tax (UHT)

The Government of Canada implemented the Underused Housing Tax (UHT) on June 9, 2022, and as of December 31, 2022, it will impact certain residential property owners.

A residential property owner who is not classified as an “Excluded Owner” must file the UHT return by April 30 of the following year. They may be required to pay an annual 1% tax on the Taxable Value or the Fair Market Value of the vacant or underused housing.

Excluded Owners include Canadian citizens and permanent residents, so most individuals will not need to file a UHT return. However, all private corporations, partnerships and trusts (even those owned by Canadian citizens) who own residential property will be required to file a UHT return annually, even if they are exempt from the UHT.

Failure to file a UHT return has significant penalties, starting at $5,000 for individuals and $10,000 for corporations. Further, failure to file could lead to the UHT being payable, even if an exemption should have applied.

If you are a Canadian citizen or permanent resident (except in capacity as a partner or trustee), no action is required on your part. Anyone else who owns residential property, including individuals who own the property as a partner or trustee, may want to consider discussing your situation with your tax advisor.

Exemptions

Your ownership of a residential property may be exempt from the Underused Housing Tax for a calendar year depending on:

the type of owner you are
the availability of the residential property
the location and use of the residential property
the occupant of the residential property

Remember, if you are an affected owner of a residential property in Canada on December 31 you still have to file an Underused Housing Tax return for the residential property for the calendar year, even if your ownership qualifies for an exemption.

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Accounting Services:

If you are looking for a Saskatoon chartered professional accountancy firm contact the team at Hounjet Tastad Harpham today.

HTH is a Trusted Saskatoon Accountant

& Tax specialist

10 Benefits of Cloud Accounting Software By Trusted Saskatoon

18. Feb 2023 Admin Saskatoon Bookkeepers, Trusted Tips

10 Benefits of Cloud Accounting Software for Business

More and more business owners are turning to cloud accounting software to manage their business’s finances. If you haven’t yet tried it, here are 10 ways online accounting software can help your business.

Save time with automation

Don’t waste time posting and chasing invoices. Cloud accounting software automatically generates invoices— as well as reminders — at regular intervals, meaning you don’t have to manually keep track of debtors. If you combine your accounting software with HR and Payroll applications you can also automatically generate payslips and other HMRC documents.

Work from anywhere with an internet connection

Cloud accounting software means you no longer need to worry about maintaining spreadsheets or installing a program on one machine. The cloud allows you to log in to your business’s account anywhere with an internet connection. Once you sign up, you can get started straight away.

Value for money

Instead of paying a huge one-off fee for accounting software, with the cloud, you can spread the cost by paying monthly — helping you to manage your business’s cash flow. If you do prefer to pay upfront, you’ll benefit from a discount.

Up-to-date data

Automated bank feeds allow you to keep track of your business’s balance sheet in real-time. You can also view a variety of reports that give an up-to-date snapshot of your business finances. Online accounting software makes it easier to get closer to your business and gives you a clearer picture of your finances as a whole.

Keeps your information secure

As your data is saved on a secure cloud server and is constantly backed up, you don’t need to worry about your data being hacked or compromised. Even if your computer crashes, everything is still saved in the cloud.

Intuitive and easy to use

Cloud accounting software makes accounting easy for people who may not have much experience in managing financial accounts. The software is built with non-accountants in mind and help guides are available every step of the way.

Community of fellow business owners

A side benefit of joining the cloud accounting software revolution is joining an instant network of fellow business owners whom you can meet and chat with via community forums and business events.

Give access to multiple users and set permissions

If different people manage different elements of your business, it’s easy to add multiple users to your account and tailor permissions so that people with specific job roles only see what they need to.

Software is consistently updated and improved without you having to do anything

Rather than having to wait for a new integration of a program, cloud accounting software is constantly updated by in-house developers. This means that if things change, cloud software is agile enough to keep up-to-date in real-time. In addition, unlike desktop accounting software programs, these updates are free and included as part of your monthly subscription fee.

Collaborate easily with your accountant

In the past, it was common for business owners to chat with their accountant once a year at year-end — leading to one huge pile of work. Cloud accounting software lets you share your accounts with your accountant throughout the year and work together regularly.

Trusted Saskatoon Bookkeeping & Tax Tips If You Have Missing Tax Slips

18. Feb 2023 Admin Saskatoon Bookkeepers, Trusted Tips

Missing a Tax Slip? Here's How to Find it and What Happens if You Don't

Walk into a Canadian household in April and you’ll likely find a kitchen table littered with receipts and pairs of reading glasses. Yet with all the receipts and tax slips you’re supposed to keep, it’s likely some are going to go missing – and a missing slip can mean a big swing in your tax bill. Before you go ahead and file your return, you’ll want to do your due diligence to avoid any penalties for missing or inaccurate information.

Check your account online

My Account for Individuals is a great place to start to check your info. Logging into your account, you should be able to find online versions of your T4 slips. You’ll also be able to check carry-forward balances like tuition credits or capital losses, as well as your RRSP contribution limits. While you’re there, you can also sign up for a direct deposit to get your refund faster and deposited directly to your bank account.

Call the CRA

Only some of your tax slips will show up in My Account, namely the slips that begin with T4. To verify all your tax slips that the CRA has on file, particularly ones that relate to investments, you can call the Individual Enquiries line at 1-800-959-8281. Before you call, make sure you’ve got your SIN and last year’s tax return handy (which you can view online). After answering a few security questions, you can ask to confirm the slips they have on file for you and compare their records to yours to see if you’ve missed anything.

How do you know if the CRA has all your slips?

The majority of T3s, T4s, and T5s will all be processed through the CRA’s system. As the processing of these slips requires a SIN, the income on the slip is then attributed to you which you can then verify when you call the CRA.

‍However, not all slips go through the CRA’s system.

‍Certain slips such as T2202As for tuition deductions, T5008s for capital gains and losses, and RRSP contributions are not always processed by the CRA. While the rules differ across the various types of tax forms, some slips can be generated independently and don’t have to go through the CRA’s system first. For these slips, you’re going to want to track them down from the source provider since the CRA won’t have them on file.

For example, if you know you’re meant to receive a tuition credit, call the school to grab your form. If you’ve made some stock trades in the year, call your bank to grab a gains and losses report. Unfortunately, there’s no fool-proof way to know that you’ve got all these types of slips – you’ll just need to remember!

What happens if you still miss a slip?

If you file your taxes with a missing slip, don't expect a collections officer at your place. If the missing slip contained only a small amount of income, you may get lucky and the CRA may just ignore it. On the other hand, if it’s a significant amount of income, you may be automatically reassessed.

When this happens, as long as you’re in a refund position, you likely won’t have the interest to pay. Unfortunately, if the swing is big enough to generate a balance owing, you may have some interest to cover. If you missed a significant slip that the CRA does not have on file such as a tuition slip, not to worry, you can file an adjustment to your return down the road if you’re able to track it down. Before you file your return, double-checking that you’ve got all your slips covered will mean a faster refund, no interest, and less stress!

Your Ultimate Tax Checklist From Trusted Saskatoon

17. Feb 2023 Admin Saskatoon Bookkeepers, Website

Your Ultimate Tax Checklist

It is that time of year again… tax season! If you are like most people, doing taxes is something you view as a dreaded task or you procrastinate doing. Do not fear, we have a helpful Tax Season Checklist to make doing your taxes easier to organize. This list will outline all the things we could need from you in order to prepare your income tax return.

Tax Slips

T4 slips (Employment income)
T4e Employment Insurance benefits
T4A (other pensions, annuities, and certain scholarships)
T4AP (CPP benefits)
T4 RSP (RRSP income)
T4 RIF (RRIF income)
T4 A-OAS (old age security)
T3 (Mutual Funds, REITs, ETFs)
T5 (investment income – interest, dividends, certain capital gains)
RC62 (Universal Child Care benefits)
T5007 (Social assistance payments/Worker’s compensation benefits)
T2202A (Tuition/education receipts)
T5031 (partnership income)
T2200 (Condition of employment/allowable employment expenses)
All other information slips

Receipts

RRSP contribution slips
Medical expenses
Support for a child, spouse, or common-law partner
Transit pass receipts
Charitable donations
Office-in-home expenses
Moving expenses (including realtor’s commissions)
Exams for professional certification
Carrying charges and interest expenses
Other interest expenses
Political contributions
Childcare expenses
Adoption expenses
Children’s arts and sports expenses
Tool expenses (tradesperson)
Interest paid on your student loans
Professional or union dues
Attendant Expenses for the disabled person
Other Documentation
Notice of Assessment/Reassessment
CRA Correspondence
Amounts you have paid in tax installments
Rental income and expenses
The sale or deemed sale of stocks, bonds, real estate, etc.
Disability tax credit certificate
Business, farm, or fishing income or expenses
Northern resident’s deduction receipts
Commission employee expenses
Automobile/Travel logbook and expenses (self-employed and commissioned employees)
Volunteer firefighter’s certification
Graduate Retention Certificate
Search and rescue volunteer certificate
Legal expenses to collect alimony, pension, or retirement allowances